Fred P. Kross P.C. Articles Difficulties of Refinancing for Seniors and Self-Employed

Difficulties of Refinancing for Seniors and Self-Employed

By Fred P. Kross P.C.  Jul. 1, 2013 10:35a

Mortgage interest rates still remain at all-time lows which make it smart to refinance a home at this time. Not everyone is eligible to take advantage of the low interest rates, however. Those who are retired or who are self-employed often face the fact that lending institutions will not approve them. They often are not able to refinance even if they have an excellent credit score and have never missed a mortgage payment. Without a proven and steady income stream that can be verified by an employer, many homeowners have no chance of refinancing.

According to AARP (American Association of Retired Persons), among homeowners over the age of 50, 16 percent owe more on their home than it is currently worth or do not have enough equity in the home to refinance. AARP also reports that in the age group of 65 to 74, 44 percent are still making mortgage payments on their homes. This may be because these seniors used their home equity to finance their retirements prior to the recession with loans that were built on high home values and low rates.

With the recent tightened requirements by lenders for obtaining any kind of a home loan, the self-employed face greater obstacles in qualifying. Increased documentation of income is now required and those without a steady or growing income or who have high credit card debt or who racked up high start-up fees may not make the grade. This makes it difficult for business owners and those who work from home even as this segment of the population is growing. The Small Business Administration reported in 2012 that self-employed Americans had reached the 9.9 million mark.

Bankruptcy Attorney in Gwinnett County, Georgia

For those with high unsecured debt, the future can look extremely bleak. Insurmountable debt can lead to foreclosure, repossession, wage garnishment and other financial disasters and those in this situation often believe there is little they can do about it. This is not the case; discussing your financial scene with a knowledgeable attorney will allow you to explore your debt relief options. You may be surprised at what can be done to help you end the downward spiral you are on.

At Fred P. Kross P.C. based in Gwinnett County, the legal team has provided debt relief solutions for thousands of Georgia individuals and families. Mr. Cherney has handled over 2,000 bankruptcy cases as well as providing alternative debt relief options such as debt negotiation, debt settlement, and legal action against abusive creditor harassment. His aim is to help you get back on your feet and regain control of your finances. Learn what can be done by contacting his firm for a free consultation as soon as possible.

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