Through about two years ago we ran up some nasty credit card debt.
We stopped making payments on three cards, walking away from balances of roughly $50k, $40k, and $10k.
Two years ago we settled the biggest debt for about $21k.
We have an offer now to settle the next debt for $20k.
The third card has not been pestering us.
In that time (and before it), we stayed 100% current on our mortgage, paid off a car loan, and kept 100% current on an auto lease and other credit card debt (always paying in full).
Our joint income is again in good shape (almost twice what it was in 2009, our worst year), and we're looking to refinance our mortgage (6.75% for 20 years, $114k owed on $180k house), taking $20k out to settle the cc debt mentioned above.
However, not surprisingly, a 589 credit score is interfering with us getting a typical mortgage. Even an FHA loan, black and white, won't lend to 620 or lower.
I presume there are brokers and lenders out there who would give us the mortgage we're looking for - 15-20 year term, rate lower than current 6.75%, $20k cash out. But I also presume many are sharks and opportunists.
So I'm wondering which such brokers or lenders are out there, that people in our situation have had positive experiences with.
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