The Sewing Mom

We have friends who I believe are hurting from poor financial decisions which have resulted in them now having bad credit and they need to find a way to repair the damage. I know they have had a tough time with divorce and job loss, but still, poor decisions have been made along the way too.

One of the biggest mistakes I believe they made was taking out an interest only mortgage loan on their condo. Interest only means only one thing, no equity. So now that they are trying to sell it and the market has slowed, they are ending up owing more than it is worth. This is not good in any situation.

They would definitely benefit from a resource that could help them get back on their feet and repair their credit. Perhaps they could even refinance with a more conventional home loan so they could start building some equity even in a slumping market. I’m sure that some credit counseling wouldn’t hurt either.

Whatever they do, I hope they’ve learned and don’t let it happen to them again.

Technorati Tags: bad credit, credit counseling

No tags.