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Application question


uncabuzzy
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I have two unpaid charge offs that are four years old still on my reports....we want to purchase a house.

Question, which is more beneficial and will improve my odds of approval:

Pay the debt in full or offer a settlement of 50%?

Forget about applying and stay in my 900 sq foot trailer house and be laughed out of the mortgage company office feeling hopeless and ashamed?

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You need to remove all your old addresses from your credit reports first. Then dispute these entries with the CRAs.

Then if that doesn't work, go the DV route. Then and only then would you consider paying these off. This whole process takes between 30 - 90 days.

Good luck.

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Depending on when you want to start looking, I have another idea. Find out what your credit scores are, and then make your plans. Depending on your credit history/job history etc, with a 580 score, you could very likely purchase a home now, with little or no money of your own.

Some lenders will want you to pay off your collections. I would suggest that you agree to do that if you have the money, but only "at the closing table". Sometimes lenders will run your credit again after the process is done, just to see if there are any surprises happen right before closing. If you pay off the collections, that will lower your score/s. Sometimes a lot.

Charles

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