Our Expert Answers Your Mortgage and Credit Questions.  Ask Gina!!

Sometimes reading online articles about different mortgage challenges isn't enough and you'd like to have a specific question answered that doesn't seem to be addressed anywhere.  Here at Mortgage Credit Problems, we receive many questions from readers like you who have specific situations that warrant attention, so we are starting a completely new feature where one of our mortgage experts will give your question the attention that it deserves.  So if you have a pressing question, you can send it to us at ask@mortgagecreditproblems.com.

One of our experts, Gina Pogol, has been writing about mortgage and finance since 1989, after having worked for over a decade in mortgage lending. She has particular insight into those who may have credit issues as she has also been a consultant to Experian and other credit bureaus, so she knows the ins and outs of credit and credit reporting from both the credit bureau side as well as the mortgage lender side.  In addition, she has deep knowledge of tax issues from having served as a tax accountant for Deloitte.  Gina has a BS in Financial Management from the University of Nevada.

Related Articles

• You Might Be Able to Stop Foreclosure with a Mortgage Insurance Claim Advance
  

  Rose Asks: Dear Gina, We're having bad credit and financial problems and trouble paying our mortgage. I heard from a co-worker that we might be able to get something called a "claim advance" from our lender. What's a claim advance and how does it work?

  Gina Says: I am sorry that you are having mortgage credit problems. Your co-worker is right; there is something called a claim advance, and it might help you...

  
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• Deed in Lieu if Foreclosure: What it Can and Can't Do for You
  

  Steve Asks: Dear Gina, I lost my job six months ago and have been trying to sell my house ever since, but no one will offer me anything close to what I owe on it. A friend of mine suggested that I try a deed in lieu of foreclosure. I have no idea what this is. What is it and can it help me?

  Gina Says: It sounds like a deed in lieu is a good solution for you if you can negotiate one. A deed in lieu of foreclosure is simply a non-judicial way of turning the property back to the lender without going through the legal hoops of foreclosure...

  
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• Can I Get a Mortgage if I Am Not a U.S. Citizen?
  

  Niles Asks: Dear Gina, I have been working in the United States for some time and expect to continue to do so for several more years. I'd like to take advantage of the low prices for American real estate and buy a home. Is is possible for me to get a mortgage in the U.S.?

  Gina Says: Yes, non-citizens of the United States are allowed to buy real estate, and there are mortgages for them called foreign national home loans...

  
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• Is an Adjustable Mortgage with a Teaser Rate Always a Bad Idea?
  

  Dave Asks: Dear Gina, I am looking for a loan to refinance my home and I am confused. My current loan is an adjustable rate mortgage (ARM) and I planned to get another one. But I keep seeing articles from mortgage experts who say that these loans are bad and that I should always get a fixed rate loan. Is this true?

  Gina Says: ARM loans have been somewhat demonized recently by many because of the fallout from the mortgage crisis. And it's true that borrowers with ARMs have a much higher default rate than those with fixed rate loans. However, that's not the entire picture...

  
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• Can I Get My Credit Scores for Free?
  

  Jeff Asks: Dear Gina, Many sites claim to offer free credit reports and credit scores, but when I try to get them, I find that I have to sign up for (and pay for!) credit monitoring or other services. I want to check my credit before I refinance my mortgage. Is there really a way to get my credit reports and scores for free?

  Gina Says: You are right; when it comes to credit scores it seems that there is no free lunch--except now there is...

  
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• Do You Have Bad Credit and Need Cash?
  

  Jim Asks: Dear Gina,I need to refinance out of my bad credit mortgage and hopefully get some cash to pay off credit cards. The problem is once I got my scores above 600, lenders decided they wanted 700! I can't keep up! And if I don't reduce my monthly payments, I won't be able to continue paying on time and my credit will get bad again.

  Gina Says: You are right; lenders are making it harder every day to get approved for a home loan. And home equity money is tough to get too. Your best best is probably an FHA cash-out refinance...

  
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• Why Can't I Avoid Late Payments and Bad Credit by Paying My Mortgage Early?
  

  Angry Homeowner Asks: Dear Gina, I am furious at my lender! I was going out of town and didn't want to miss next month's mortgage payment (I used to have bad credit and have been trying to clean it up). I sent in two payments--one for August and one for September--and then I left town, thinking my mortgage was paid for two months. But those guys took payment number two and put the whole thing toward my principal! And then in September they showed my payment as missed! I can't get them to fix this! Why?

  Gina Says: The issue here is that your lender can't legally hold your payment until the next month, and is required by law to apply it toward your principal balance...

  
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• My Income Has Dropped. Can I Get a Lower Interest Rate on MY FHA Mortgage?
  

  Linda Asks: Dear Gina, I currently have an FHA mortgage at 7.125%. I lost my job in the automotive industry recently and could only get another one that pays quite a bit less. So I have run through my savings paying my mortgage and won't be able to afford the payments much longer. My lender is not much help and I don't understand what they are telling me. What should I do?

  Gina Says: First, check with several lenders for rates on an FHA streamline refinance. Even if you have bad credit or your income has dropped, you can get one of these...

  
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• The $8,000 First Time Buyer Tax Credit Expires Soon. Is it Too Late to Start Looking for a Home?
  

  Ann Asks: Dear Gina, My credit is a little bad but not horrible--a batch of late payments over a year ago when I lost my job. Since then I have paid my bills on time and I want to buy a house and get the first time home buyer's credit of $8,000. Will I be able to get a loan and is it too late to start the process?

  Gina Says: Well, it IS the eleventh hour but you might be able to pull it off...

  
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• Is Refinancing to a Fixed Rate Home Loan Always the Right Choice?
  

  Elizabeth Asks: Dear Gina, Some friends of mine recently refinanced their home loan to get out of their ARM and into a fixed rate mortgage. They told me that my loan was a time bomb and that I should refinance too. Are they right?

  Gina Says: Your friends may have made the right decision for them. Lets see if it's the right decision for you. You need to consider several factors before making a decision to fix your interest rate...

  
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• Can You Buy a Home if You Have a Recent Bankruptcy or Foreclosure?
  

  Katherine Asks: Dear Gina, My husband and I went through some tough financial times. He was a real estate developer and we had many rentals. We ended up with a slew of foreclosures on the rental properties and a Chapter 7 bankruptcy, which was discharged just over a year ago. We moved out of state, got back on our feet, and have steady employment and 20% to put down. We found a house that is an absolute steal--the owners are heirs and just want to dump it fast. We love the property, but can we get a mortgage?

  Gina Says: Ordinarily I recommend that people with bad credit start with FHA when looking for a mortgage...

  
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• My Bad Credit Means I Have to Pay Extra Fees. Does This Have to Be Done Upfront?
  

  Holly Asks: Dear Gina, I ruined my credit a few years ago and while my scores are good enough to get me approved, the lender is adding on thousands of dollars in extra fees because of my credit score, which is about 630. Do I have to bring the fees in when I close on my loan?

  Gina Says: Congratulations on getting your mortgage approved. Today 630 is considered a bad credit score in the wake of the mortgage lending crisis...

  
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• Can I get California and Federal Tax Credits When I Buy My New Home?
  

  Emma Asks: Dear Gina, I want to buy a house in a new subdivision in California. I heard that because I'm a first time home buyer, plus buying a brand new home in California, I can get $18,000 in tax credits. is this true? Can I use them as my down payment if I get an FHA loan? My credit is kind of bad but not horrible.

  Gina Says: As of July 3rd, California ran out of money for the $10,000 credit...

  
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• Shopping for a Mortgage: Making It Easy
  

  Marrianne Asks: Dear Gina, I have never bought a house before and have never had a mortgage. It seems like getting a good loan is a scary process if you have never done it. And I'm not sure, but I think I might have bad credit. I had a credit card with an old boyfriend and I don't think he paid it when we broke up.

  Gina Says: First, stop being scared. Before you go looking for loans in all the wrong places, you need to know what your credit really is...

  
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• Are There Stated Income Loans for People with Bad Credit?
  

  Chris Asks: Dear Gina, I am trying to get a mortgage but am having a hard time proving my income. Can I still get a stated income home loan? My credit is pretty bad and I heard that there is a new form you have to sign that can get you in trouble if your income is wrong.

  Gina Says: First, you are going to have a very hard time getting a stated income mortgage unless you have a lot of equity or a really big (50%) down payment...

  
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• Can You Get a Bad Credit Mortgage Through Private Investors?
  

  Edwin Asks: Dear Gina, I am having a very hard time buying a home in spite of my excellent income and a large down payment because I have bad credit. I have heard there are ways to get financing through private investors who charge higher rates but will do my loan. Is this true and how do I find these investors?

  Gina Says: This is becoming a big issue right now so I'm glad you brought it up...

  
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• Decreasing Bad Credit Card Debt Without Hurting Credit
  

  Charylene Asks: I have credit card debt and want pay it down. But my rates were raised and it will be harder than ever. I might have to miss a payment-I'd rather pay my mortgage if I have to skip something. What can I do?

  Gina Says: Closing cards can give you a bad credit rating...

  
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• Can the $7500 First Time Buyer Credit Be a Bad Thing?
  

  Blake Asks: I closed on my home and took the tax credit in 2008. I then needed to rent closer to work because of back problems. Can I rent out my condo without paying back the tax credit?

  Gina Says: I am very sorry about your situation and appreciate that you have written to me...

  
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• How Does a Lender Decide What My Home Is Worth?
  

  Mary Asks: I tried to refinance, but my home's appraised value came in too low. How did they decide this?

  Gina Says: There's probably a Uniform Residential Appraisal Report in your lenders file. You are entitled to a copy--and here's how to read it....

  
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• Refinance Damaged Property?
  

  Becky Asks: I want to refinance, but my house has some hail damage. How does this affect my chances of refinancing?

  Gina Says: I've got a short answer from an expert, and the rest is about 600 pages of FHA regulations...

  
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• Can Renters Be Thrown Out of Foreclosed Property?
  

  Jesse Asks: I just got a call from my landlord. He said my home (I'm renting) is in foreclosure and my family and I have to go. Can renters just be kicked out like that?

  Gina Says: Unfortunately this is being repeated all over the country...

  
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• Free Money: Can the $8,000 Home Buyer Tax Credit Be Used as a Down Payment on an FHA Loan?
  

  Ellis Asks: I'm a first-time home buyer who used to have really bad credit but I might qualify for an FHA loan. Will an FHA or bad credit lender let me use the $8,000 first time homebuyer tax credit for a downpayment?

  Gina Says: There is good news and bad news...

  
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• Do Credit Counseling Programs and FHA Home Loans Mix?
  

  Dave in Tucson Asks: My wife and I got in over our heads with credit cards. We then enrolled in consumer credit counseling. Will we be able to get an FHA mortgage?

  Gina Says: That depends. Typically HUD underwriters view counseling like they'd view Chapter 13 bankruptcy...

  
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• Foreclosure prevention: Can mortgage insurance hurt or help me?
  

  Allen Asks: I lost my job and am about to miss a mortgage payment. Will having mortgage insurance make my lender foreclose faster because it gets insurance money?

  Gina Says: First, you're smart to jump on this right away instead of waiting until the mortgage is 60 days behind...

  
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• Bad Credit Loans: How Did Even Smart Businesspeople Get Into So Much Trouble?
  

  Earnest Asks: My financial planner friend is trapped in a bad credit loan! How can Average Joes protect themselves when even savvy folks are messing up...?

  Gina Says: So many 'smart people' relied on continuous property appreciation...

  
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• Lien on Home Property: How Does it Affect Sale or Mortgage Refinance?
  

  Mark Asks: A friend was closing a refinance loan but was told there was a lien preventing the loan from getting funded. He didn't even know it was there...

  Gina Says: A lien is simply a publicly recorded claim against your property...

  
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• Mortgage Loan Documents: Will I Go to Hell if I Don't Read Them?
  

  Kiel Asks: Every loan deal I look at comes with enough paper to take down a forest or two. Do I really have to read all this junk or are some sheets more important than others?

  Gina Says: Will you really go to borrower hell if you don't read every bit of boiler-plate?

  
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• Is it smart to refinance to an FHA loan if you don't qualify for a HARP Fannie or Freddie refinance?
  

  Derek Asks: I'd like to refinance my adjustable rate mortgage into fixed. I don't meet HARP / Making Home Affordable Refinance requirements - should I go with an FHA Refinance?

  Gina Says: I have a big question: How long do you plan to keep your home...

  
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• FHA Streamline Refinances Available for Those Whose Credit Has Gone Bad
  

  Mary in Albany Asks: I'd like to refinance my FHA mortgage. But my home value has dropped and my credit is kind of bad too. Is there any chance of refinancing my home loan?

  Gina Says: Sure. The FHA Streamline Refinance is available to homeowners with FHA Mortgages...

  
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• Bad Credit Lenders are Still Around Although Getting Bad Credit Loans Might be Tougher
  

  Anonymous Asks: I've heard that all of the subprime or bad credit mortgage lenders are out of business and that most people with bad credit won't be able to buy homes now. Is this true?

  Gina Says: A borrower with poor credit represents an addition of risk to the lender...

  
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• What We Can Learn About Overcoming Foreclosures from The Great Depression
  

  Anonymous Asks: What was the Great Depression like in terms of foreclosures and families, and how were these problems solved?

  Gina Says: Prior to the Great Depression, there was almost no government involvement (like the FDIC or Federal Reserve)...

  
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• Advice on Getting Approved for a Mortgage When On Commission or Self Employed
  

  Anonymous Asks: I work on commission, and changed jobs. Although I make more at a better company, I keep getting turned down. I was told I have to be at my new job for at least 18 months. Is there a way around this?

  Gina Says: First of all, Fannie Mae is a material girl...

  
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• Advice on Debt Consolidation Through Home Equity: Not Always A No-Brainer
  

  Kathy Asks: Is Consolidating my High Interest Debt through Home Equity Always a No-Brainer?

  Gina Says:With home equity's lower rates, it may always seem like an easy fix, but you may be surprised that it's not...

  
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• Dear Gina: Is Owner Financing an Option for Bad Credit Buyers?
  

  Earl Asks: We want to buy our house. The owner says he'll finance it, but he has a mortgage on it! Is this legal?

  Gina Says: It depends. Most mortgage loans have what's called a due on sale clause...

  
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• Dear Gina: How Can I Get a Bad Credit Mortgage or Find A Hard Money Lender So I Can Buy My Home?
  

  Matt asks: Where can I find a private investor / hard money lender or a mortgage for bad credit? We've recently remodeled our home and want to exercise a lease option to purchase but 3 lenders have denied us a mortgage. I'd like to get a deal to secure our home: it's worth $400K, we have $15K to put down and the purchase price is $285K, so we would need a loan for $270K. This seems like a great deal.

  Gina's answer:This situation presents a lot of pitfalls and possibilities...

  
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• Dear Gina: How Soon After Bankruptcy Discharge Can I Get a Mortgage?
  

  Terri P. asks: How long after a bankruptcy discharge do you recommend someone wait to apply for a mortgage?

  Gina: That depends on how bad your credit was, what caused you to file for bankruptcy, and what kind of filing you did. A solid citizen who became seriously ill, racked up huge medical bills, and was unable to work is looked at differently than a party animal who bought one too many boats and invested excessively at the craps tables...

  
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• Dear Gina: Can Relatives With Good Credit but Fixed Incomes Help Get Me A Mortgage?
  

  Anonymous asks:I have bad credit, but want to purchase a home to move my wife and I, along with her parents, into it. Her father is on a fixed income with good credit. We could go in together on the mortgage, but I must be on it also. With our two incomes together, we could do it. I have been on my job for almost 17 years. What are the chances of this? Thank you.

  Gina: Hi. Thanks for writing. There are a few things we need to look at here. First, with bad credit, your best chance of getting financing is probably with an FHA or Rural Housing mortgage. To advise you here I would need to know exactly how bad your credit is...

  
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