Momof6WantsaHouse

Newbie-Wondering if I can help myself?

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Hello All-I have been reading for about 6 hours now and thought I'd throw my situation out there and beg for some help.

We decided to go to a lender and see what we needed to do to get a house. We knew our credit was horrible as we got hooked up with Genus Credit Management (DON'T DO IT!) and they screwed us-imagine that..:smirk:. We have been away from them for 2 yrs and still haven't gotten contact by everyone we owe. In fact after that disaster we don't know who we owe or how much. Our credit report was a good start however many accounts have seen sold to numerous CA's and they are all reporting all over the place. I can barely figure it all out. I contacted one CA from a debt with last activity in 2000. Since this is listed at the top as a collection I don't know if I'm going to just go with the SOL thing (WA state-3 yrs). The lender said get these things paid first and foremost. These people gave me a total $200 more than the report said and it was just a couple days ago.

I had a Sears Account. They went from CBUSA/SEARS to Sherman Aq and even to some lawyer who i set arrangements up with before I found you guys. I guess I'm screwed onthat. So by now I have about 6 different tradelines for 2 seperate Sears accounts and have no idea who to contact. I wonder if they don't do that just so you have no idea who to contact.

I have a collection for an AT&T cell phone under collections and it says unknown acct so who knows who is reporting that? Shouldn't they have to make themselves known somehow, why does the CRA allow it to be unnamed?

When reading your report does "purchased by another lender" mean you can no longer contact them about it?

We want to make settlement offers but I also want the negative stuff taken off too. I don't know who to start with..CA's or trying to hunt down the OC's.Of course if I cant get the negs taken off I'll take the paids as we are going VA and they look more for you to be out of debt than your score.

ANother Q is if the CA isn't licensed in my state does that mean they can't collect against me? I have a few that aren't.

We have about $25k in debt according to them, of course if I could get a 60% settlement on all of them it would be down to $15. We are going to see a bankruptcy lawyer but I would really want to fix it without that if at all possible. Anyone have this much debt and get out?

Sorry for the long post...After 6 hrs I still haven't come up with any solid answers as to where to start so here I am....

Melissa

Mom of 5 soon to be 6... :D

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Welcome Aboard!

It's unfortunate you got shafted by this company, but, remember, you are not alone. So many others have done the same thing, so keep smiling. As to the debt with the 3 yr SOL, all that means is they have forfeited their right to sue you. All lenders want to see are either a Zero Balance or a deletion before funding for a home. Even though a debt is timebarred from suit, it does not matter to the lender. Remember, their whole purpose of this is they are afraid of a lien.

As to the CA you contacted, they can only add interest and fees if the law allows. Therefore, if you do decide to pay, you will want absolute proof they can charge you over and above the original amount. You will also tell them that they must delete their TL if you pay them. What you will do is write this in your letter and clearly explain to them you are aware they have no legal recourse for the debt, therefore, if they refuse, you will not pay. Remember, do not, for any reason, tell them you are trying to buy a house.

You do have your work cut out for you, but, it is not all that bad. Sit down with your current report from the lender. Break down each collection account so you are assured each original debt (OC) is in one column. An example is, you mentioned Sears with several trade lines (TL). Start with the oldest, or first reporting of the collection. Once you have them in their particular order, you will then compose a letter to the Credit Reporting Agencies reporting the information. when you look at your report, you will notice to the right of the trade line, the initials EQ, EX, and TU will appear with maybe a "01" below it. This is representing they have a TL for this account. Your disputes will be worded as the accounts are "not mine". This will take about 30 days after they receive your letter. What you are hoping for is all of them will disappear. More than likely, all but the most current will disappear. If any others remain, let us know and we will guide you to the next step. Did you sign any agreements for this debt?

As to the AT&T, you will dispute as "not mine" with the CRA's. If it comes back verified, you will send them another letter wanting the information as to who is reporting this TL.

Yes, this is usually true. That is part of the agreement when the account is sold. One thing to remember about a sold account is the buyer paid only cents on the dollar for the account.

As to the settlement offers, wait until you have exhausted your disputes with the CRA's to assure you do not pay double for an account. Once you have absolute proof of which is which, then you can compose your letter offering a settlement. At that time, you will, depending on the age of the debt, and the SOL, offer settlement for about $.25 on the dollar. They will counter with either a "NO" or about $.80 on the dollar. You would counter back at $.40 and it will sometimes be accepted. You will also state the TL must be deleted.

Get started on this and when you have a better idea of where you stand, let us know.

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One last thing to mention is that BK, although an option, will prevent you from getting a mortgage on a house for at least a year. The FHA guidelines require you to be 12 months out of a discharged BK before they can consider you. Other, conventional loans require you to be 2-4 years out of the BK. Don't even think about those high interest loans on a house that you may qualify for with bad credit. Over time, the interest paid would be more than triple the closing value of the house.

In all cases, unpaid delinquencies must be satisfied at closing. This doesn't necessarily mean it has to be paid off....just paid to a current status.

When I did my FHA loan a little while back I combined a few options together to take care of all matters at the signing of the papers.

First, I got a nehemiah grant to cover some of the down-payment and to deal with expenses associated with closing. (Ask your broker about it) I then negotiated what I could with the three creditors. One wanted a payoff but the others only wanted me to make payments. When I went in to sign the closing papers on the house, the title company cut checks from the nehemiah grant funds to pay the creditors. For the ones that agreed to payments, I only had to come up with the amount due. For other that wanted a lump sum, I had a check cut for that amount. The Title company even mailed the checks.

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One last thing to mention is that BK, although an option, will prevent you from getting a mortgage on a house for at least a year. The FHA guidelines require you to be 12 months out of a discharged BK before they can consider you. Other, conventional loans require you to be 2-4 years out of the BK. Don't even think about those high interest loans on a house that you may qualify for with bad credit. Over time, the interest paid would be more than triple the closing value of the house.

In all cases, unpaid delinquencies must be satisfied at closing. This doesn't necessarily mean it has to be paid off....just paid to a current status.

When I did my FHA loan a little while back I combined a few options together to take care of all matters at the signing of the papers.

First, I got a nehemiah grant to cover some of the down-payment and to deal with expenses associated with closing. (Ask your broker about it) I then negotiated what I could with the three creditors. One wanted a payoff but the others only wanted me to make payments. When I went in to sign the closing papers on the house, the title company cut checks from the nehemiah grant funds to pay the creditors. For the ones that agreed to payments, I only had to come up with the amount due. For other that wanted a lump sum, I had a check cut for that amount. The Title company even mailed the checks.

Methuss, I was told by a FHA/VA broker that FHA requires 2 years after discharge?

Can you shed any light?

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Thanks for the welcome and the in depth info! I am very glad I found this before submitting to the BK Gods.

A couple questions you say about the CA I contacted to make sure it is legal for them to be adding fees on top of the original amount. Other than requesting a contract from them between me & the OC which I had signed is there any other way to do that?

***************

As to the Sears account, you ask did we sign any agreements as to this debt do you mean the original credit card contract? It is a credit card and I assume the only thing that is an agreement of that is the original cc agreement.

******************

Again thanks so much, I'll start with the CRA's.

Melissa

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OK on the topic of Sears , the accts are in my DH name. He has 2 accts. I would like to give you the info on the TL's for one account so you can get an idea of what I mean by multiple TL's, thenperhaps you can tell me what to say to the CRA. If you don't mind. I'm not a religious fanatic but There will be a place in heaven for all of you helping each other fight the devil. :D

So here it goes... frommost recent backwards

Sherman Aquisition / Acct *********

Opened 06-2003 < I guess thats when they bought it>

CRA (xpn tuc)

HIgh 6704

Balance 6704

Status Coll-P&L

Rpted 06-04

Lact <blank>

past due 6704

Lmt 0

placed for collection

***********************

CBUSASEARS / Acct ********* (same as above acct #)

Opened 7-97 < when DH opened it >

CRA (tuc)

High 6381c

Balance 6381

Status Coll P&L

Rptd 06-03

Closed 05-03

Lmt 7200

Purchased by another Lender

***********************************

CBUSASEARS / ********** (different acct # but same acct)

OPened 07-97

High 7230

pymt 0

balance 0

status Coll P&L

rptd 07/04 < why would they be reporting this when its been sold?>

lact 08/02

Closed

Lmt 7200

Paid account/zero balance

Closed account

*******************************************

Unfortunately I agreed to terms with a lawyer group for the other Sears acct because they served us a summons. Now I'm paying $200 a month for a yr and I wil get nothing deleted from our report when its said and done :( .... I got scared.....before I found you guys.

Melissa ... THANKS!!!!!!!!!!!!!!!

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No, that should be suffice to see if the add-ons are legal. You will also need ot check your State's laws.

No, I was talking about signing an agreement for the monthly you are paying now. More later on this subject.

As to the Sears Accounts, I was referring ot the CA's, not Sears.

The 1st TL is wrong as they must use th original DOLA and date it went to collection. The reporter is a debt buyer who thinks they can get around this, but, no way. You need to dispute as "not mine" for the 1st time. If it is verified, we will guide you to the next move.

Need to dispute with the CRA's as"Duplicate Entry".

This date represents the date of the latest update. The only thing I can think of is they updated the TL for some reason, such as they found something wrong with their original report. I don't know, but, more than likely, it was legal.

One thing I would like to add is about your going VA. We just bought our house last April. Our original intent was to go VA because I am 100% SC, plus all of the "Benes" that go with a VA. We received our letter, which gave us the max amount, and was already to get it going. Then, we found that VA is more stringent on some things that FHA isn't, and, due to this, could slow down closing, etc. It also would cost us a little more in the overall closing area. In short, they sometimes cause headaches to the sellers which upsets some of them. Either way, we went FHA and are quite pleased with the whole situation. I am not saying to say no, I am only saying to look at both and pick the one that suits you best.

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