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Fixing the credit and buying a house


MKG122001
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My husband doesnt have the greatest credit (avg. score 580 I believe). I believe there are 11 collections, but most of it is from 1997 and 98 (divorce). So, we really want to buy a house before August, which is when our lease is up. His total amount owed in all collections combined is about $12000. We recently inherited a large sum of money, but are first waiting to hear back regarding the letters we sent asking for "proof" of the account in my husbands name (using a WONDERFUL form we got off this site) before sending the money. I don't mind paying the money, if they are able to prove it is owed. My credit is decent, but I don't work or have income.

So, a couple of questions...

how long does it take to get things "removed" or fixed on your credit report?

If I were to pay a collection, how quickly would the status of unpaid be changed? (obviously I will negotiate the amount, and WILL NOT pay in full)

We plan on putting quite a bit down, will this affect our interest rate?

Any other advice is more than appreciated. I really, really want to be able to purchase something come early summer, and will do *almost* anything in my power.

Thank you in advance!!

**edited to add* I just signed up at myfico.com and his credit score there is 619. With $50K down, could we still get a mortgage. All of his recent credit (past 5 years or so...) is good. Or do we have to have ALL of the delinquinces cleared before? Thanks!!

Maria

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With down payment's it is not so much the $ amount, but the percentage. If you are talking about over 10% down I would say, just from what you have said on the forum, you can get a loan. If you are saying 30% down, then you can get a mortgage with as low as 475 scores.

I think that you will for sure get things changed on your report within 45 days of submitting the information, they say 30 days, but seems like it is longer.

If you will take off/remove/payoff your collections, you will be in very good shape for sure.

Charles

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Is it possible that 97 was 8 years ago? Geez, I keep forgetting that it is already 2004. You are right. 6 years is the longest for any state's SOL.

So things could be very good for you very soon.

Morrow in credit repair part of the forum is very good at this. She did wonders for herself, I know for a fact.

Besides she needs something to do.

Charles

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