Forum
|
|
Forum
|
| Subtopic | Msgs | Last Updated |
     | Sunday, November 28, 1999 - 01:24 pm  I am going to be attempting to get a mortgage. This will be my first home. I have paid off any collections I had and written dispute letters and got my reports updated. I still have a federal tax lien and I am making payments on that. The statute of collection on the lien runs in May of 2001. I have had good credit for 2 1/2 years with a car payment and one credit card. I have another credit card that is 1 year old and good. I also co-signed for my husband's truck in May of 1999. He has had an unsecured major credit card since May as well. He has no other credit on his reports. I am wondering if there is anything else we can do and what our chances of getting a good rate mortgage are. Any ideas?? I have looked at several sites that rate your credit, and have gotten from A to C-, depending on the site. Any information or help is appreciated. Thanks.
|
| | Monday, November 29, 1999 - 04:01 pm Cheryl: First of all, most traditional lenders, are going to require that the tax lien be satisfied. Along with a letter of explanation for the tax lien and the collection accounts(even though they were satisfied). The fact that you had such good credit for 2 1/2 years is great and will definitely be a positive. There are mortgage companies that will take your credit as is, but if you want the lowest possible rate, and the least amount of $ down, check out the traditional lenders (banks).
|
| | Sunday, January 16, 2000 - 05:42 am We received approval for an FHA loan through one of the big lenders in the country at 7.75% for $155K which I think is pretty good. Even with the tax lien our FICO scores were in the upper 600's. Now, the problem is finding a home. Houses are going up at an astronomical rate here in Denver. Thanks for ideas.
|
| | Sunday, January 16, 2000 - 09:25 am Cheryl: How much is the tax lien? Are you required to pay the lien in full prior to settlement on the new home loan?
|
| | Thursday, February 03, 2000 - 11:52 pm I have just started trying to get preapproved for a mortgage I have a beacon score of 555 and was told by the real estate offices finacial advisor they could make me a loan IF I would pay off ALL of my charge offs (8 in all totaling right at $4000.) Now only 3 of the 8 are within the past four years and they total about half of the amount owed. I have the money to pay them but according to my experian report all except the 3 are scheduled to fall off by 7-2000. Now my concern is, if I pay them it will change my "date of last activity" and report for another 7 years, is this correct? Also, their finance guy claims those other 5 will not come off of my report ever unless paid? Will it help my Beacon score at all to pay any of these charge offs? PLEASE HELP I DON'T WANT TO DO THE WRONG THING EITHER WAY.
|
| | Friday, February 04, 2000 - 04:32 am You haven't provided much detail on the accounts, so this is just general comment. Give us more detail and we can be specific. If you can wait until July, then do so. The statute of limitations has more than likely run out, so they can't collect from you (don't let them lie). The items will remain for seven years (plus or minus a few months, depending upon when they defaulted) from the original delinquency date or (if applicable) the charge-off date. Nobody can buy or transfer the debt and start the clock again. Are you going to negotiate the 3 recent ones? Negotiate a COMPLETE REMOVAL of data from your credit bureau files and ignorance of the account history if the bureaus contact them for verification. Get it in writing! On the letterhead of the company listed on your report. Signed by an authorized agent of the company. And don't pay them a dime, regardless of what they threaten, unless you get this agreement. You lose all bargaining power once you've paid them. Do NOT do a payment plan - this CAN restart the clock. Settlement of the debt (full payoff, partial payoff agreed as full settlement, etc.) will NOT restart the clock. Again, negotiate a removal and you won't even have to worry about that question. The "finance guy" who made the statement "those other 5 will not come off of my report ever unless paid" is a complete moron. You need to get him a copy of the Fair Credit Reporting Act. Will it help your score to pay them off? Sure, but to what extent is not known (see other discussion here regaring credit scoring). What's usually the case is the mortgage company requires the debts to be paid off, not necessarily your score to be higher (they don't want someone you owe money to to find you six months after you close on the house and put a lien on it). But they usually want a minimum score as well. If you have more info on the debts, I'm sure we can answer more specifically.
|
| | Saturday, February 05, 2000 - 07:52 am Sorry it's been so long since I last read the site, I have been working a lot of overtime. Greg, my tax lien was for $18,000.00. I don't have to pay it off. The loan was an FHA through a major reputable lender at the going FHA rate. The only thing that may make a difference is that the statute of collections is running on the lien and the IRS is going to have to release it soon (within a year).
|
| | Sunday, February 06, 2000 - 03:11 am Cheryl: A point to be noted is that the FHA program is far less punishing than Fannie Mae and Freddie Mac conventional loans. HUD uses it to pressure those agencies to make more loans. The major loan limit increases in the last few years were a huge blow. What is your required down payment?
|
| | Sunday, February 06, 2000 - 09:27 am Thanks Rcb , you aske dfor more info on the accounts so here it goes: 1)Transouth- Loan for $1512.00 charged off a little over 3 years ago.Collection agency sent a letter stating they would take 50 cents on the dollar should I do this? If i pay the collection agency does it cancel the original debt showing up on my report? 2)First credit-Loan for $1000.00 charged off a little over 3 years ago ,got hurt at work stopped paying. 3)Lowes- $120.00 charged off a little over 3 years ago , got hurt stopped paying 4)Collectrite(Energas bill)-$65.00 scheduled to stop being reported 7/2000 , moved never got bill. 5)Collectrite(water bill)-$40.00 scheduled to stop reporting 6/2000. moved never got bill. 6)Gordons-$60.00 charged off 4/1993. 7)JcPenny-$326.00 charged off 10/1992. 8)Collection account rent to own housing-$346.00 date of last activity 5/1993. painted bedroom to improve looks landlord called it damage but never informed me found it on credit file 5 years later when trying to get a rent home. That sums the bad stuff up , any ideas ? Besides the bad which should be fixing to fall off I have for the past 2 years had all paid on schedule 2 vehicles,2 major unsecured low limit credit cards, a department store card and 2 paid in full $500 loans. I just want to get my file in order but the real estate campany is pushing to pay off all the above derogitory credit, I have the money to do so as i stated in my last message but i don't want to damage my file if it is fixing to fall off I am not in a real rush so waiting won't kill ,me but I don't want to wait to handle it if I wind up having to pay anyway? Thanks in advance for your comments and help
|
| | Monday, February 07, 2000 - 06:43 am Anonymous: I replied to this in a response to the email message that you sent to my mediaone email account. It was way too long to post here and I'm sure we would have just bored everybody else with your specific details ... :)
|
| | Monday, February 07, 2000 - 10:53 am Thanks!!
|
Credit Forum CreditCourt Forum 2003 Credit Suit CreditFactors Order Credit Reports |