mom23 Posted February 15, 2005 Report Share Posted February 15, 2005 Why is it that some one who has filed BK (even as early as a year ago) can get a mortgage loan easier and at a better interest rate, than some one with some bad credit who is trying to fix it and pay for it? I just dont understand this consept. Really makes me just want to go file for BK.My husband and I have been trying to get a home for over a year now. It has been very stressful and heart breaking. Link to comment Share on other sites More sharing options...
Erika Posted February 15, 2005 Report Share Posted February 15, 2005 I had some credit problems in the past, but have been absolutely stellar for almost 2 years and my scores are still in the mid-high 500's. My husband and his ex-wife declared BK 7 years ago and he's in the mid-high 600's. I've never ever skirted my financial obligations.... they just wrote off theirs and are now a better credit risk than I am.It makes me sick, too. The system is flawed somewhere. Link to comment Share on other sites More sharing options...
firstsource Posted February 15, 2005 Report Share Posted February 15, 2005 Yes, the worst of it all, is that if you do things "right" and are able to keep some credit cards open (even though they show 0 balances) you may be able to get a great loan 1 day from BK. The credit reports are set up to almost punish people that pay things off instead of going BK. I guess the track record of people that go through it one time must show that they don't get into trouble again normally. Charles Link to comment Share on other sites More sharing options...
edubb007 Posted February 15, 2005 Report Share Posted February 15, 2005 That's terrible! Makes me sick to hear that! Link to comment Share on other sites More sharing options...
mom23 Posted February 15, 2005 Author Report Share Posted February 15, 2005 Exactly what I am talking about. I just cant understand it all.We didnt actually get turned down for a loan but the only one that we could get through the company we talked to, was one for 30% down, (out of the question for us) we needed 100% and the interest was to be 10.1%. ( outrageous) I read on another post that some one with a BK got something like 7%.MY scores right now are:EFX - 561 XPN - 607 TU - 559My husbands are: EFX - 603 XPN - 9002(not authorized??) TU- 583anyone know what that 9002 not authorized means??I know our credit is shot, but we are working on it. I just want to get my kids into a home and have their own rooms befor they graduate high school. Link to comment Share on other sites More sharing options...
miracle Posted February 15, 2005 Report Share Posted February 15, 2005 I have always wondered that same thing. I would agree that the system is flawed somewhere. Link to comment Share on other sites More sharing options...
gprncss Posted February 16, 2005 Report Share Posted February 16, 2005 Isn't that ironic!!! makes no sense to me either. Mom23, Erika, if you have any paid collections or COs on your CR, get them off! Also make sure your utilization is 30% or less on your CCs, these will increase your scores. Link to comment Share on other sites More sharing options...
firstsource Posted February 16, 2005 Report Share Posted February 16, 2005 Please consult some people at the Credit Repair part of the forum before you pay off the collections. I gave someone bad advice on how to take care of those things a long time ago, so always suggest that you contact anyone there, Morrow I happen to know, but there are a lot of great people there that can tell you the best way. Why was it wrong advice? I told him the logical thing (to me) "if you pay off your collections, your scores will go up" of course I did not realize that the DLA (Date of Last Activity) would kick in, so he owes less money, has no collections now, but his scores dropped after he did that. Charles Link to comment Share on other sites More sharing options...
mom23 Posted February 16, 2005 Author Report Share Posted February 16, 2005 I am trying to see what I can do to get the paid ones off of my CR. I have read to send them a Good Will letter and see if they will drop it. what else can I do?? I have searched for an example of a Good Will letter and cant seem to find one. does anyone have a sample of what I should say and such??thank you for all of your help Link to comment Share on other sites More sharing options...
gprncss Posted February 16, 2005 Report Share Posted February 16, 2005 I am trying to see what I can do to get the paid ones off of my CR. I have read to send them a Good Will letter and see if they will drop it. what else can I do?? I have searched for an example of a Good Will letter and cant seem to find one. does anyone have a sample of what I should say and such??thank you for all of your helpDon't write to the CA, instead dispute with the CRAs. Since the collections are paid, you have a very good chance they will not bother to verify with the CRAs so it will come off. There is a sticky section on how to remove paid collections in the credit repair forum, I followed the tips and got all of mine removed Link to comment Share on other sites More sharing options...
5150 Posted February 16, 2005 Report Share Posted February 16, 2005 the reason people like me can get a mortgage after bk is that we do not owe any money and we dont have all the lates that people trying to pay there bill have. another reason is the abilty to raise our scores very fast. fico groups people into different catogries. like one group that has bk on there reports. so i am compared to all the people that have bk on there reports. if i am aggresive in my repair my scores will rebound very fast as you can see by my sig block. it may not be fair but its the rules. so i played by there rules and i will out smart them. Link to comment Share on other sites More sharing options...
jq26 Posted February 17, 2005 Report Share Posted February 17, 2005 For reasons stated above, I agree. I considered repaying all of the unsecured debt I had +35K at about 20% APR. Then I realized that TO NOT EVEN PAY DOWN THE DEBT, I would have to service $600 worth of interest per month. It would take me 3-5 years to pay it off fully if I was lucky. I would not be creditworthy and I would just have to pray that my car didn't break down because I could not afford another nor get financing. On top of that, I would have to hope I didn't get laid off or something and then my credit would be shot all over again. That kind of made my decision easy. I've been told one day after BK7, I need a minimum 580 for 100% financing on a mortgage (my best friend is a mortgage broker). I am 90 days post BK and my middle score is close to 610 and I owe $62/month to a student loan and $42/month to a cellphone plan and nothing else. I didn't establish the rules, but I play by them Link to comment Share on other sites More sharing options...
mzjazzyazz Posted February 17, 2005 Report Share Posted February 17, 2005 I filed bk in 2002, and if I could change anything in the world I would have not filed. My scores are not high even after the bk because I still was being irresponsible. But my life changed drastically as far as credit was concerned. Before I had every credit card you can think of, could walk into any dealership and get 3.9% financing, and any kind of store credit I wanted. Then things changed for me, and I had to file BK. When I went to get a car, the only interest rate they had for me was 18% and I get can't a credit card to save my life. Not because of the BK, but because I messed up AFTER the bk. There are alot of pros and cons for bk, so if you are serioulsy thinking about it.......think long and hard. Link to comment Share on other sites More sharing options...
5150 Posted February 18, 2005 Report Share Posted February 18, 2005 jq26 i had $125,000.00 at about 28% costing about $2500.00 per month min payment. i am retired on ss and i just couldnt pay that nut every month. Link to comment Share on other sites More sharing options...
jq26 Posted February 18, 2005 Report Share Posted February 18, 2005 5150- I had other debt obligations, that was just the dischargable part. I had back taxes and a car loan and other obligations (which I paid off as of this week). My point was that the filing changed my life forever. I am a completely different person! Although I HATE the fact that I filed, it was the best thing that I did. I was a financial train wreck headed nowhere but down. It forced me to confront ther underlying issues that caused my situation. BK is awful but at least its a fresh start. But everyone's situation is different. Link to comment Share on other sites More sharing options...
5150 Posted February 18, 2005 Report Share Posted February 18, 2005 i also had a car turned in and you are right about fresh start. when you think about your bills 24/7 and always getting phone calls its time to file. Link to comment Share on other sites More sharing options...
bad credit man Posted March 13, 2005 Report Share Posted March 13, 2005 I think I might have to filed bk. Beause if I tried to repair my 3 reports I will be doing ths for ever iam waiting for my reports in the mail I will see what I will do my scores is in the low 500s I was talking to a motage co and I was told to repair my credit it will take me forever. Link to comment Share on other sites More sharing options...
bad credit man Posted March 13, 2005 Report Share Posted March 13, 2005 I think I might have to filed bk. Beause if I tried to repair my 3 reports I will be doing ths for ever iam waiting for my reports in the mail I will see what I will do my scores is in the low 500s I was talking to a motage co and I was told to repair my credit it will take me forever. Link to comment Share on other sites More sharing options...
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