deeclaire4040 Posted February 3, 2005 Report Share Posted February 3, 2005 I have finally decided to purchase a home and am so excited about it. I spoke the mortgage company my realtor recommended and she made suggestions to raise my score to 580. Right now my middle score is 551. I realized a few months ago that I needed to clean my report up a bit and paid off 3 small collections last month. I paid off all but one collection which is with Capital One and is about 5 years old. I'm in the process of starting the settling negotiations with them. The loan agent suggested that I consolidate my Sallie Mae student loans, which are listed as 8 different accounts, and that I should pay off two finance company loans. Do you think doing these things will increase my score enough to get a mortgage? All comments are welcome!!!! Link to comment Share on other sites More sharing options...
Rezin Posted February 3, 2005 Report Share Posted February 3, 2005 Paying those collections will not rasie your score.....You need to have them removed. A PAID collection is still a collection.. It reports the same as unpaid.Now, request validation for them. They probably will fold easier since it is paid, so maybe you'll get lucky. Then, Dispute them with the CRA's...Pay down cc balaces as much as possible, and don't apply for new credit and all these will rasie your scores. Link to comment Share on other sites More sharing options...
CLM Posted February 7, 2005 Report Share Posted February 7, 2005 deeclaire4040, CONGRATS on your decision to become a home owner. I wish you the best !!I would suggest posting your question in the "Mortgage" section of this forum. Direct your question to the moderator "Charles" of FirstSource. I've been working with him while going through the credit repair process. I"m happy to say in just one year, of course with the help of everyone here in this forum I've raised my scores from 432 Ex415 Eq480 TUto:666 Ex611 Eq598 TUAnd Charles has helped me obtain my first mortgage. He's GREAT!Good luck Link to comment Share on other sites More sharing options...
Tourniquet416 Posted February 7, 2005 Report Share Posted February 7, 2005 hey, CLM, i'm going over to the mortgage forum. but HOW did you raise your scores over 100 points in a year. that's exactly what i need to do to get a low interest rate on a house. it seems to impossible. Link to comment Share on other sites More sharing options...
CLM Posted February 7, 2005 Report Share Posted February 7, 2005 It was a long tedious process but I just kept at it. My first step was to register with Privacy Guard so I was able to monitor changes to my report. After that, I started the dispute process which included writing multiple letters to various agencies. And of course, everyone in this forum helped to guide me through the entire process. THis Credit Info Center is an extremely valuable resource! Link to comment Share on other sites More sharing options...
amortgageman Posted February 7, 2005 Report Share Posted February 7, 2005 CLM,When qualifying for a mortgage, a paid collection is just as good, and you will not need to worry about the debt any longer. Sneaky little critters come along and put liens on your home after you move in, and you don't want that to happen.I have to agree with consolidating your student loans. When you are doing this, consider your desired debt to income ratios, and get the lowest rate possible, and also considering the amount you will be obligated to monthly. Remember you can aways pay extra towards the balance. Additionally, the interest rates which determine student loan rates are going to be rising in the future, and locking in a low rate on the student loans will benefit you. They wil also prove as good paid tradelines for you. I agree, when it comes to mortgage specific questions, it is best to go to the mortgage section for more specific questions. (just happpened to catch the question in the "headlines" on the homey page. Link to comment Share on other sites More sharing options...
deeclaire4040 Posted February 8, 2005 Author Report Share Posted February 8, 2005 Thanks for all of your help! I will start the process of consolidating the loans. At least now I know where to start and what I have to do. Link to comment Share on other sites More sharing options...
Psycosis Posted February 8, 2005 Report Share Posted February 8, 2005 Have you considered an FHA loan , certain lenders will get you apporved on an FHA insured loan with low scores , In my opinion its a better way to go ... you will get a prime rate 30 year fixed loan with no pre pay penalty also if anything were to happen in the future and you were unable to make payments there are a lot more programs as far as avoiding f/c. FHA is a government insured loan ....see the link belowhttp://fha.com/credit_issues.cfm Link to comment Share on other sites More sharing options...
chatter2960 Posted February 8, 2005 Report Share Posted February 8, 2005 Hi psychosis,Please check this post out and tell me what you think. Wife and I are currently trying to get an FHA with no money down.http://www.debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=25324 Link to comment Share on other sites More sharing options...
Psycosis Posted February 8, 2005 Report Share Posted February 8, 2005 I tell you what I've had one pre FHA Loan and are in the procees of closing the second. Personaly I think FHA is the way to go. I have been doing collection at Wamu for prime and subprime loans for 3 years now. I feel FHa is way more secure usualy they wont even review for F/C until 5 months of delquincy where as conv loan is 3 months. As far as scores go you should be more then ok I'll admit the underwriting process is a little more strict but then again the depends on the lender. What I would do is consider other lenders, shop around if your givin the run around. Link to comment Share on other sites More sharing options...
amortgageman Posted February 9, 2005 Report Share Posted February 9, 2005 I feel FHa is way more secure usualy they wont even review for F/C until 5 months of delquincy where as conv loan is 3 months. Gee, even after falling behind 5 months (thought it was three), you can still use HUD mediation and have the five months delinquency put at the end of the loan in a forebearance agreement, as long as you can prove you can pay (income qualify) the loan afterwards. This can save a lot of people from losing their homes in case of temporary job loss, injury, etc. Had a neighbor have to do that recently. His loan was with WAMU and I think he had to pay about $1,200.00 attorney fees, etc. Imagine six months house payments for $1,200.00 (I won't go into details why he had to miss 90 days). I'm telling you it must be the American Dream loan.BTW: I realized a few months ago that I needed to clean my report up a bit and paid off 3 small collections last month. I paid off all but one collection which is with Capital One and is about 5 years old. I'm in the process of starting the settling negotiations with them. I can read through the lines of what your loan officer is trying to do by the mention of "580" credit scores, but, it sounds like you are pretty close to being able to qualify FHA (FHA has purchase amount limits specific to geographcal areas, but the limits start at $172,000). Be sure to check stuff out. Link to comment Share on other sites More sharing options...
Psycosis Posted February 9, 2005 Report Share Posted February 9, 2005 FHA and VA loans wont even be reviewed for f/c until at least 5 months mostly they wont be turned over to an attorney until the 6th month. Most of the time HUD will just advise the Borr to request HOA pack from the lender to qualify for a loss mit work out. It’s through loss mit they can qualify for the short or long term forbearance. Which most of the time will lead in to a modification? Mainly the forbearance its self is just an arrangement for the borr to pay a reduced payment i.e. interest only or any agreed amount until the borr is able to resume the payments. If at that time they are unable to resume and pay past due payments. Then a modification would be needed and they will take your total past due bal and re work it into the principal bal and new terms will be set. Attorney fees are only assessed if the loan is turned over to f/c. All fees in a mod can not be included in mod for it is not legal to collect interest on fees. Usually all fees will be requested to be paid up front. Link to comment Share on other sites More sharing options...
amortgageman Posted February 9, 2005 Report Share Posted February 9, 2005 Psycosis,In your experience have you ever seen where WAMU will work with the borrower on the attorney expenses? If so, how? Nice information, but we have kidnapped a thread. Link to comment Share on other sites More sharing options...
Psycosis Posted February 10, 2005 Report Share Posted February 10, 2005 In a way they will I guess, it all depends on the circumstance, for example the loan is in f/c and the borr can reinstate by paying the past due amount but is not able to pay all the reinstatement fees, I.e. attorney cost court fee etc, they will allow those fees to be paid at a later time. I don't really handle to many f/c loans in my dept. I haven’t seen any situations where they will waive any fees assessed by the attorney but that doesn't mean it’s never happened. Link to comment Share on other sites More sharing options...
workinninetofive Posted February 10, 2005 Report Share Posted February 10, 2005 hey, CLM, i'm going over to the mortgage forum. but HOW did you raise your scores over 100 points in a year. that's exactly what i need to do to get a low interest rate on a house. it seems to impossible.I've raised my score over 100 points in 4 mths... it can be done.Dispute everything... what comes back verified, dv them. You can PFD if your in a hurry. I would suggest ordering the book, sitting down and reading it. Link to comment Share on other sites More sharing options...
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