Merice, there are companies - good companies - that specialize in what's called credit repair - BUT - the kind I am referring to DO NOT require counseling to be put on your credit history - in fact, as long as you can hold up your end of the responsbilities - i.e. just making your payments on time - they guarantee that your credit will be repaired. Great company and these guys are excellent - they use THE LAW against credit agencies that don't do their job correctly, find mistakes in their documentation and by law, they must WIPE OUT negative credit. It's amazing. I had a client who had a 529 credit score - after they got down with her - she had a 680. Unreal. Of course it costs money, but that's the price you pay. I am not affiliated with them - I just use them as a referral for my clients with poor credit.

You need to sell this home or negotiate a reasonable term with the current bank. You will not be finding any products that are available to you with your 500 credit score. There has been a lot of pressure from governing bodies on lenders who should be willing to work with your situation if they currently hold your loan. Call your lender and tell them it is time to do you right. There is nothing you can do to rapid re-score your credit from a 500, stop worrying about the score because you will get scammed by one of these credit repair guys. The only credit repair is if there is something inaccurate on your report, if there is not just work on selling or getting out.....Good luck to you, I am certain that since you are here being proactive that you will get it worked out. Great post......

30% of your credit score is affected by your debt utilization. You need your credit card balances to drop below 30%. Call your credit cards and ask to increase your credit line .. w/out pulling your credit.. Also, setting up your payments automatically will help trigger a positive on your score

I can help you, please call Jim Gansky @ 516-220-8640.

Thank you !

To take a positive view: Your mortgage company probably has a ton of unwanted real estate to deal with these days, call now and see if they can chop up the ballon and/or put it off till a later date; and/or possibly restructure the loan to suit your personal situation. Try to get your credit in shape starting today.

Merice,

From the sound of it you still have some time before your ballon payment is due. With a credit score in the 500's you'll probably find it challenging to get a good refinance. A high credit score will help you get the best programs and rates for your refinance.

My suggestion is to take steps now to improve your credit scores before you attempt the refinance. Most of the time you can significantly improve your credit scores in about 4 to 6 months with the right help and by taking the right actions.

Just be careful. You are in a vulnerable situation and may not be aware that there are people who claim to be credit repair specialists but in realtiy they are only in business to prey on people needing the improve their credit scores. Consult with some people you trust and ask them for referrals to legitimate credit enhanement businesses.

Good Luck!

Trey Bowden
Mortgage Lender
Oklahoma
(405) 340-3277

Hi Merice
Call the bank that holds the mortgage or a mortgage broker for advice. Good Luck!