looking at HELOC after a foreclosure...but we now own our current home outright

Long story...hubbie's work closed down during the recession leaving him out of money for over 15 months with some sporadic employment here and there. We attempted to modify three times without success (and am involved with the attorney general lawsuit for the State of MN because of this). The house went into foreclosure after an unsuccessful shortsale attempt, and we were able to settle our second which I'm still paying on per agreement. I had continued to pay our other debts like clockwork. We were blessed with family support and bought a home that we rehabbed and later sold to now owning our current home clear including paying off family. Our scores are in the high 600's (680 one actually coming thru around 700). I pulled a loan out of retirement funds to pay part of the family obligation as well as now have some big box store credit (Menards/Home Depot) that was used to "fix up" this current house that had needed repairs. We'd like to get a HELOC to consolidate debt on a much lower interest rate as well as eventually get the windows replaced. We debate paying off the retirement loan - although I think it's a good idea since the payment is $800. I can't go to my credit union since that's where my settlement is. Any suggestions? The foreclosure was back in 2010. We earn fairly good income. by tinaob_575_607 from Saint Paul, Minnesota. Mar 31st 2013 Reply