     anonymous (Zcraws) | Tuesday, July 25, 2000 - 03:17 am 
I recently found out the bank that we had our vehicle through (vehicle traded a few months ago, vehicle paid off) reported us 8 times 30 days and 1 time 60 days. After researching, I found that for a period of over six months, we were a payment behind. we want to purchase a home in aprox 3 months and want these late payments removed. Any suggestions on procedures on how to possibly do this, would be greatly appreciated. |
| Senator (Senator) | Tuesday, July 25, 2000 - 04:19 am
How are the other credit lines?
Your FICO score will determine whether you qualify A,B, C or D. Without a bankruptcy or judgement you should be okay without a hitch. Find a good mortgage broker and have a good explanation as to what happened.
don't worry about credit. worry about the real estate prices asked and whether they are worth it. Don't stretch yourself despite what your real estate agent encourages you to do. Home prices are at their high peak right now so be prepared for some lowering of prices and choose where you want to live and enjoy life without killing yourself with a high mortgage payment. Remember there is no job security so build up cash reserves to a year to cover unexpected layoffs, reorgs.
Savvy real estate agents know the market has quickly gone (in many regions of the US) from a seller's market to a buyer's market so there are plenty of very overpriced inventory to choose from. Look for one's who have been transferred or have bought another home and quickly losing their cash as they pay for two mortgages.
good luck. |
| anonymous (Zcraws) | Tuesday, July 25, 2000 - 06:28 am
Senator, thanks for the reply.
We did file a chapter 7 a little over 5 years ago. We do have 4 other trade lines with perfect pay histories. I really just want to try to get the late payments removed. We KNOW that we will have to go FHA. Our debt to income ratios are a little high. right around 39%. Last time I checked, my score was 560 and hubby 580. I am not quite sure why they are so low. But I do know we are pretty maxed out on the credit cards. We will be paying those down or off though. Also we have a chargeoff that should show included in bankruptcy that we are working on to get corrected with the bureaus. Any suggestions on getting the bank to remove the lates? |
| Senator (Senator) | Tuesday, July 25, 2000 - 02:13 pm
First, you need to get a copy of your credit reports, all three bureaus, and look at what is causing your scores to be low. Second, I strongly urge you to utilize the services of a legal firm or other firm to challenge the deragotory items on your report. If it is like mine, it was a disaster following my ch7 and I tried on my own to correct it and got nowhere. I am pleased with the results of the law firm that I have hired. You can do it yourself, it is just aggravating with the games they play. Third, you need to set up a budget and stick to it. One thing they just love is when former ch7 are retentive about budgets and saving and not maxing cards out. Maxing cards out is a red flag. No more than 50% (kinda ballpark figure from what I have gathered reading all the postings at this great site) should be charged. Credit is a convenience not a necessity. Chant that mantra five times a day and before you use the credit card. Use cash more often than not. Don't pay them off, just get them below 50%. Read more postings on this site. Fourth, get the charge off corrected immediately if it was discharged.
As to getting those 30 day lates removed, it will be tough. You can talk to the bank about doing it but don't count on it. Your best bet on the mortgage is an adequate explanation as to what happened. But remember don't stretch your budget on the house or you will reenter the cycle of debt controlling your life. |
| anonymous (Zcraws) | Wednesday, July 26, 2000 - 03:37 am
Senator,
besides these lates and the chargeoff, there are no more serious derogatory information in our files, but I do understand what you mean about debt controlling your life. for 3 years following the bankruptcy we had no debt except a car loan, rent and utilities. But we wanted to start to rebuild credit. We do have to remember the credit card debt is what got us in trouble the first time. After reading all of the info on this board, I KNOW, I have to learn a more discipline with utilizing the credit cards. Before reading this information, I did not know that MAXING out your credit card was SO NEGATIVE. I was very ingnorant in that sense. I also understand what you mean about OVEREXTENDING with purchasing the home. Our income is approx $65,000.00 per year. We will NOT be purchasing a home over $140,000.00!! That is our limit, NO MATTER WHAT THE broker/realtor SAYS!! THEY DO NOT HAVE TO MAKE THE PAYMENTS!! WE DO!!! I work part time to raise my son, I WILL NOT SACRIFICE THAT FOR ANYONE OR ANYTHING!!! Thanks for the warning about the INDUSTRY!!! |
