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New here and desperate for advice!!!


Cole
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I am soooo glad I found this site! I have been researching all evening, and my brain is just about fried.

Anyways, here is my deal... as short as possible, lol!

Back in about 2001 I had killer credit. Many cards, all paid on, (usually in full each month). I ended up losing my job, and I'm sure you know the rest. I was young, and stupid. So I had a world of trouble on my hands, and no clue what to do, so I just stuck my head in the sand. About 6 months after I gave up, I finally enrolled in a debt consolidation program. What a scam. But I paid faithfully every month for about 2 1/2 years, while most of the balances barely moved. Fast forward to July of 2004. My husband and I split up. He says he will pay on the debt thing until I get on my feet. Still young and foolish, I believe him. Of course, the payments stopped. Everything goes back into collection. I had moved about 4 times in one year, so the letters didn't even reach me until around February of this year. I began trying to settle with the cc companies, but have gotten nowhere. I was told I could have them sign a contract stating they would mark my accounts as "Paid In Full", but none of them would do it. Now it seems being young and stupid once again has worked against me. Hey, at least I can admit it, right? LOL

So back in spring I was trying to buy a forclosure home. I had a SUBSTANTIAL amount of cash to put down, but was refused based on my credit rating. I pull my reports from all of the Big 3. This is when I find not only my own credit mess... but all the accounts my husband had on there as well. Only two of them were "joint"... the rest he had just made me an authorised user. I ask him to remove my name, he refuses, despite the fact that it would be in his best interest considering my credit is down the crapper and getting worse.

So now.... now is when it gets worse. The house I am living in I have always been sure I'd be able to buy once they decided to sell. Long story short...the house is going to be put on the market in January... not in 2 years as originally expected. So now I have a mere few months to scramble at an attempt of credit repair so I can get this mortgage. This house is my HOME, and the thought of having to move is killing me.

So I call my husband today and ask him once again about removing my name from HIS accounts. I know HIS life has gone to hell, and he isn't paying on his ccs for awhile now. I NEED HIS STUFF GONE!! This is when he informs me he has CLOSED ALL THE CC ACCOUNTS, AFTER DEFAULTING ON THEM, WITHOUT REMOVING MY NAME FROM THEM!!!!

I feel totally overwhelmed at this point. I don't know where to start or what is the right thing to do. I have enough cash stashed to settle with my own creditors... but unsure of how to do it properly in a way that I can quickly repair my credit rating. As for the accounts he held with my name one them... what do I do?? I do have a seperation agreement dated mid 2004 stating my debt was mine, his debt was his. Will this help? Where do I start?? I have 2 CAs willing to settle for 50%. It's all just such a mess at this point.... I need to repair my credit ASAP.... like within the next 2-3 months. When I got my reports back in spring, my FICA combined was about a 509 average, and I have no clue how low it could be by now.

The ONLY thing good going for me credit-wise is the 3 ccs I kept. They are all in perfect standing and remain so monthly. Two are dept stores and one is a gas card. I hoped keeping a few around would help keep me afloat...???

Thank you in advance for muddling through my long story and for any advice you might have. My future living situation depends on getting this fixed...and FAST!!!

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Dispute the authorized user cards as "not mine or not my acct" with the CRA's most should come off pretty easily. If you have any trouble with getting any removed that way contact the OC and ask them to remove the TL's from your credit report as they aren't your accounts.

Make sure you pay your rent by check and or get a receipt showing your rent is paid on time. Mortgage people usually want to see this.

The accounts that are yours you can dispute as well what ever doesn't come off you may have to pay in order to get a mortgage.

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I will tell you this is a common tale. Many people come here wanting to clean their credit to buy a home and they are looking to fix it in only a month or two. Sadly, it doesn't work that quickly. If you file the first round of disputes today, they will have until Christmas Eve to complete the investigation. Then the dispute letters go out, green cards come back, another round of disputes, and you are looking at early to mid February already.

I tell people that it takes 3-9 months or even longer to clear your credit, depending on how bad it is. It took you years to damage it, and it is not a quick or easy thing to fix.

A 509 is a rather low score, and while it can be fixed, it will take some time. You will need to write disputes to the furnishers and dispute the accounts being on there. After all, if you were an authorized user, you are not responsible for the default. This will take time, and depending on the furnisher, will take from 2-4 months and possibly involve lawsuits to fix.

It can be done, but I feel like you will not get it done in the time frame you are looking at. Read through the site and read the stickys and that will get you started.

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Divemedic-

I appreciate your honesty, and I agree with you. That is why I am so upset... I thought I had another 2 years before this house would be put up for sale, but sadly the situation at hand suddenly turned sour and now I'm in a time bind. The only reason I am even going to attempt this is because I am hoping against hope that the house will take awhile to sell. The realtor the owner spoke with said 6 months is a likely estimate, so I am *HOPING* I have until June of 2006 to figure something out.

After frying my brain last night reading through this board and other sites, I began to wonder if maybe I should just hire a lawyer to help me out? Problem is, all I find are bancruptcy lawyers, and I do NOT want to do that for many reasons. I would like to know if you can find lawyers who will do the paperwork and footwork for you as far as getting these items disputed, deleted, and/or settled? Maybe it's my ignorance showing again, but I'd like to think maybe they can get things moving quicker than an average schmuck like me?

Thanks again!

Oh yeah, and Happy Thanksgiving everyone!

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Cole,

In the best of circumstances you are looking at two to seven years to reconcile the credit situation. There are however alternative lenders who specialize in situations such as yours. Given you are already living in the home it is conceivable someone would lend at a high subprime rate at least temporarily. They will probably require proof of income. Most mortgage lenders are not in the business of lending to people with credit problems and that may include only one late payment of two months. Another concern is loss of the loan should creditors come forward with claims against the property. Your time will be best spent looking for alternative financing if the purchase is really worth it to you as opposed to a crash credit clean effort.

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This purchase is worth everything to me. Literally... EVERYTHING. This house is my home, has been since I found it in 99. I left here in '01 for my husband and haven't been happier since I came back last year. I will do anything possible to find a way to purchase this property.... nothing else is an option. :(

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I must admit that I dont know much about mortgages, but if you have a substantial down payment, you may want to try taking half of it and paying off everything that you can with that half of the money. Your credit score will go up a little and the mortgage companies may be willing to take a chance on you if they see that you have paid some of your negative items off. It isnt the best strategy for fixing your credit, but once you get the loan you can always get yourcredit fixed up and then refinance at a lower interest rate. Good luck to you.

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Negative. Poor, poor advice. Always try for the delete first. Once you pay, you are stuck with PAID collections. Paid collections are nearly impossible to get rid of and still damage your score. IMO, paying a collector that has already listed on your CR is a total waste of money.

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I agree that is advise ONLY as a last resort. I applied for a mortgage last year. I receive about 4 offers. I had scores in the mid to high 500 and very low 600's. The offers had very high interest rates.

Along came countrywide and offered me a low interest rate BUT, I had to use the money I saved to pay off old debt. I saved for a LONG time for a down payment and closing cost. The countrywide lender told me to pay off everything. So, I did. I spend $5000 paying old bills. Only two of them were a settlement, The others were in full. Countrywide said they were not able to get me that rate and their rate was 2nd highest offer I had received. Then, I had paid collections that are still on my Credit report. BUT, guess what? 4 of them came off of my CR in less then 6 months. BEFORE IT HAD BEEN ON MY REPORT FOR 7 YEARS!Paid of unpaid it would have come off. If only I had found you guys before all of this.

So, IMHO

1.) Dispute every CA and OC.

2.) If you can't get it deleted then try to reach a settlement (usually 30 to60 % depending on how old it is). If they will not settle and put in WRITING that they will delete it if it is paid then, move to the next acct.

My sister went down her list. If they wouldn't settle and agree for a pay for delete then she told them. Well, I will will put you at the bottom of the list and when I get back to this item I'll call you back. It will probley be about 6 months to a year. So, I'll talk to you then. After months they relieved that she was serious. They would write her for a settlement.

3.) Talk to the home owner and see if you can't rent to own the property. Tell them you are getting your financies in order and want the house. If you have any money saved see if you can pay the downpayment now (they may want or need money right now). Maybe tell them that you will pay the taxes so they don't have to worry about that. It kinda depends on who and why they are selling. Plus, you may be able to buy the house before taxes are due and you would have to pay them anyway. I don't much about buying houses so, I don't know if that would even work. BUT, I do know about wanting a house so bad. My dream house slipped away because I wasn't ready =)

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