if i have a mortgage and want to consolidate my credit card debt onto that mortgage, is that doable?

Some important details:

recently divorced

age 64 female (I am using my friends yahoo account :)

could not refinance home during divorce due to income/ credit

credit score is now poor due to credit card debt, but was always above 700 until 1 year ago

about 30,000 in c.c. debt

well over 100k in equity in the house.

i've never missed a house payment in 30 years.

on fixed income: retirement and social security (only about 2.4K per month now) mortgage takes half that.

So the goal is to pay off those credit cards and not raise my payments by too much. I know they have home equity loans, but those just add more debt, in the sense that they take unsecured debt and secure it with my home...and carry their own large monthly payment. I dont want to add a $500 monthly payment just to pay it off... that's the same thing as the credit cards. The goal is too free up some income for living, not make a larger mess.

The goal here is to keep payments about the same. The hope is that we could almost just take the equity straight out of the house and transfer it, and just keep right on paying the mortgage. As i said, I've never missed a mortgage payment in 30 years.


to the 2nd response there... the equity is above 100k close to 200k...not the amount owed on the mortgage, which is obviously much more then that.

The goal is not to turn it into a "x"+$30,000 mortgage if my current mortgage is already "x". The goal is to take it out of the equity that's already built up in the house.

4 Answers

  • 8 years ago
    Favorite Answer

    Credit card debt is an unsecured loan. I would avoid rolling that debt into a collateralized loan. The worst thing that the debt collection agencies lawyers can do to you is get a default judgement and later on garnish your wages or get a bank levy & go after funds in your bank account. They cannot garnish SSI & may not be able to garnish certain retirement income.

    For the first 6 months after I had to default on my credit cards due to unemployment, the primary lenders called every few days although legally they can call me daily. I give them my name, address, phone # & told them I was unemployed, then hang up. I didn't elaborate or tell my life story, I was talking to a CSR & they don't get paid enough to care, plus they take notes. This process was boring, name, address, phone number, I'm unemployed, then hang up. I was polite & shared nothing.

    After 6 months, they will charged off my accounts & sold my information to a third party collection agency. This meant that the primary lender had settled my account for 3 to 7 cents on the dollar. For example, I owed $22,000, the third party collection agency will pay $1500 for my information.

    The third party collection agencies called me on Monday mostly. I gave them my name, address, phone # & ask if they had sent me their standard letter. I refused to give them my SSN, I didn't know who they were. According to the FDCPA, they have 5 days to mail me their standard letter from the time they call. I got it on Friday. Often times, they didn't call me, I got the letter first, but they can call me daily until I send them the validation letter in response. Then the calls stop.

    Once I got their standard letter, I sent them a validation letter asking them to validate the debt. See video below, link for sample validation letter included. They must provide a copy of the original credit card form I filled out & signed when opening the account. They haven’t been able to. Copies of my previous credit card statements & print screens don’t count for anything. I sent the validation letter by Signed Return Receipt once they get it, they will almost immediately sell my information to another third party collection agency & the process repeats. I sent out 2-3 validation letters a month for 7-8 months until they ran out of third party collection agencies to sell my info to. It's been quiet. There is a Statute of Limitations which is different for each state which you can google to find out.

    I don’t worry about getting a petition, the laws still favor the debtor, not the lender.

    By sending the validation letter every time, I’ll probably never see a petition.

    Source(s): www.youtube.com/watch?v=JNZ1O7a647Q www.awakeningblog.com/ collection-agency.html
  • 8 years ago

    Your question does not compute. Not missing a mortgage payment in 30 years would mean the house is paid off. {so sometime in the recent past you and your ex refinanced at least once. "the amount owed is greater than (the 200k equity)."} - - and did you refinance during that false boom we went through, so maybe your equity is not as high as you think it is??

    You cannot consolidate your cc debt onto the mortgage without refinancing, and doing a "cash out" refinance; but you cannot do that with poor credit and low income. Running up $30,000 in cc debt generally shows poor judgement and financial skills, even when going through a divorce.

    Your only 2 options* are to sell the house (to get the equity out) or do a HELOC, which is secured by the value of your house (so the bank does not really care about your credit score). That interest rate would be much lower than the cc rates, the payback period is longer so your monthly payments would be lower than the cc debt.

    As the other guy said, you are not adding more debt, you are just exchanging the cc debt for HELOC debt.

    *{option 3, sell a $30,000 share in your house. Like a down payment, but the buyer does not move in or get the house until you die. <--- that is more theory than reality; unless you do a reverse mortgage - and I am not to sure about those things yet. I believe a HELOC is a much safer and better alternative.}

    >> SO, the direct answer to your question is a reverse mortgage** {but I do not recommend it. Hire a real estate lawyer to protect your interests if you choose that option.} ** the bill (loan) is settled after you die, usually by selling the house, so your heirs may get nothing.

    Source(s): best guess on limited info and options
  • 8 years ago

    If you add your credit card debt to your mortgage that makes your mortgage amount $130000 and your payment will go to make the new debt amount (unless you extend the life of the loan and what does that get you = more debt for a longer amount of time)

    If you take out a home equity line, that means you have a first mortgage of $100000 and a second mortgage of $30000.

    - so either way you are still have the same amount of debt = $130,000.

    Add'l Info: You don't understand how any kind of loan associated with your house works:

    You have X equity

    You have Y mortgage loan

    You have Z credit card debt

    -- using the equity in your home to pay the credit card debt reduces your equity by $30000 and increases your mortgage by $30000 = it's simple math. The $30000 just doesn't disappear and you get to keep the equity you already have.

  • te144
    Lv 7
    8 years ago

    Your mortgage is secured by collateral while your credit card debt may exceed your collateralization. You'll also probably have to go to another bank as banks generally don't like disturbing current debt accounts. But give it a shot.

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