I am trying to help my parents. They just refinanced about 1 year ago. they are looking to consolidate their bills. They have about 40,000 in equity. But their scores are in the very low 500's. no bk or liens. Just lots of recent late pays and recent chargeoffs. With only one income, the debt to income ratios may be a problem also. any suggestions. They are in AZ. Any help would be greatly appreciated...
What is their credit card debt? Why so many late pays? With that much equity would it be better for them to sell and use the proceeds to pay off the debt? They can buy another house in a year so two after some credit repair. Then their debt to income ratio will be better and they might not be so strapped. I'm so hesitant to suggest people take out extra credit lines on their home when they have credit problems already.
