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What Lenders See


lizandjerry
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Well, where to start. There is no telling when one of those old ghosts will show up on your report - Murphy's law says the day you fill out paperwork, no sooner. Define eventually; later this year, within the next two years. I'm not a mortgage expert, but they look at more than credit reports - at in least in today's market. BK will cause a whole different set of challenges when purchasing a home, especially in near term.

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If the negative items are not on your credit report it will not be on the trimerge that a mortgage loan officer will pull. A lenders report does show you things that you guys do not see on your reports but tradelines is not one of them. In fact everyone has multiple credit files with the bureaus and you may get things on the reports from the bureaus that are not on the lenders trimerge. "Not allot but usually a couple things"

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If I get negatives off of my credit report yet I still owe the bills, can potential lenders see these? I'm trying to eventually purchase a house. If they can, I need to file bankruptcy :(

Alright...To be blunt here...Why are you contemplating purchasing a home when you a) have outstanding debt that you know is yours and B) are contemplating filing bankruptcy on those debts?

It seems counter-productive to me to be worrying about getting yourself deeper into the hole with a mortgage and in the same sentence talking about bankruptcy. If you don't have the money to pay off your own debts and need to file for a BK, you may not be in a position to be purchasing a home.

:confused:

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Alright...To be blunt here...Why are you contemplating purchasing a home when you a) have outstanding debt that you know is yours and B) are contemplating filing bankruptcy on those debts?

It seems counter-productive to me to be worrying about getting yourself deeper into the hole with a mortgage and in the same sentence talking about bankruptcy. If you don't have the money to pay off your own debts and need to file for a BK, you may not be in a position to be purchasing a home.

:confused:

It's understandable to see it like that. Basically, I pay $650.00/month for rent. Because my credit is bad I pay $365 for my car and since I live in a "not so good area" because the rent price is right I pay $362 for car insurance (between my dh & I). His car $362. Right off the bat that's $1739.00 a month. Because of the housing crisis here in cleveland, nice houses are selling for really cheap ($25,000-$55,000 {forclosure-everyone is losing their house because of that interest rate thingy}) in better areas than where I live. According to my insurance agent if I move out of cleveland and get into one of these suburbs where these houses are cheap, I would save $100 a month on my insurance right off the bat. Then if I can clean up my credit reports, I'm thinking I can refinance my auto loan to get a lower price than $365/month. If I can get into one of these houses the price is almost the same as an auto loan (on the lower end of course) so I would either be paying the same or lower per month for housing and actually own it. This debt is reeeeaaaalllly old and most almost out of the SOL. I had a problem about 8 years ago where I only made $800 a month, had to feed 2 people and lived in a crappy house that still cost me $450 a month. Not to mention car payments, electric & gas payments so I opened credit cards to pay for food & living expenses. Maybe my thinking is wrong. The reason I was talking about bankruptcy is because if the creditors can see the stuff even when their off of my credit report, then this "lower interest rate" stuff is out of the question and from what I can tell as long as I can keep my car (which I pay religiously-cant get to work w/o a car :) ) then at least I'll have 1 good thing on my credit report which can push me toward a good credit rating. FHA says that 2 years after bankruptcy they'll finance a house as long as I show that I have some good credit on my report. Am I thinking right about this? I thought that this is why people on this board were doing this, but I maybe I'm wrong ? I can pay my current bills, but the old ones from the past are too much to be able to pay off :( I'm really not trying to be a deadbeat. I know I owe the stuff, it's just I cant pay my current bills and the old ones. I'm just trying to make things cheaper for me and then in the long run I can pay them with all the money I'll save with better credit. So should I keep trying on the credit repair even though I technically owe the stuff, or should I just file bankruptcy & get the stuff paid & work on my credit. Andy advice would be greatly appreciated.

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Let me start out by saying you need to break up your post into paragraphs. It's hard to read the way it is.

There really is not alot of info to respond to your situation. If you have the items removed from your reports, then no a lender will not see what's not there. The only things that may appear to a mortgage broker that are not on your report would be public records that haven't hit your report yet. Like a judgment or a lien.

If these are really old debts then it shouldn't be too difficult. If you file BK I don't think that's going to help you obtain a mortgage too soon and by then the market may rebound. Unless you are talking large debts I think a BK would be counter productive.

Post more info and we'll try to help.

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I hope you didn't find my post to be offensive, but sometimes being blunt is actually more helpful than beating around the bush. :)

That being said, I totally understand why you are thinking in the way that you are. It seems somewhat logical, no?

Here are the issues that I can see right off of the bat:

1. If your credit is terrible enough that you can't get a better rate on your car insurance, I would bet that any mortgage rate you get on a home is going to be terrible as well.

2. Filing for BK and then attempting to obtain a mortgage is without question going to be counter-productive.

3. Where you do think you'll be saving money based upon having better credit? Obtaining better credit isn't necessarily what is going to cause you to save money...Changing your spending habits and being pro-active about your debt situation is going to be putting money in your bank account. ;)

4. IMO, Bankruptcy should be the last option that people weigh out (yes, I've filed myself). How much debt do you currently have?

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I hope you didn't find my post to be offensive, but sometimes being blunt is actually more helpful than beating around the bush. :)

Where you do think you'll be saving money based upon having better credit? Obtaining better credit isn't necessarily what is going to cause you to save money...Changing your spending habits and being pro-active about your debt situation is going to be putting money in your bank account. ;)

How much debt do you currently have?

I didnt find your post to be offensive at all. In fact, I really appreciate any and all help I can get! I'm thinking if I get better credit than I can refinance my auto loan for a lower interest rate saving me potentially a hundred a month. Then maybe I could bundle my current debt I have and that I'm paying & consolidate it onto a different card w/a lower interest rate also saving money. I currently have about $8000 in debt (not including car loan) in which $1406 of that I am paying as agreed. The rest have been written off or sent to collections.

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I didnt find your post to be offensive at all. In fact, I really appreciate any and all help I can get! I'm thinking if I get better credit than I can refinance my auto loan for a lower interest rate saving me potentially a hundred a month. Then maybe I could bundle my current debt I have and that I'm paying & consolidate it onto a different card w/a lower interest rate also saving money. I currently have about $8000 in debt (not including car loan) in which $1406 of that I am paying as agreed. The rest have been written off or sent to collections.

Sounds like you have a good plan. Just keep working your plan and things should begin to look better.

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$8,000 is not near enough debt to file BK, no matter what your situation is.

Pay all of your current bills, obtain new credit and work to repair your old credit. There is no reason to file BK at this time...

Cleveland, one could say, is the epicenter of the subprime earthquake. Southern California and Florida have been broader sweeping and have seen more total losses. But, a good portion of these were speculative, investment properties and/or second homes. Further, a lot of them were immigrants who have since evacuated the premises. Cleveland was different because a. more concentrated (nearly all foreclosures took place in Cuyahoga County and not in the exburbs) or anywhere else.. just Cleveland. b. nearly every foreclosure affected real, blue-collar families, and not investors and/or professionals...

Don't worry about the housing market in Cleveland. It is going to be terrible for a long time. There will be buying opportunities for years. (But, not with subpar credit and no money down...) So work on the finances.

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If I were in your place I would try the Credit Repair page from this web site. I have followed the advice there and in these boards an have had great results. I had 10-12 negatives on each report when I began and now have only one negative remaining. My Score has jumped 75 points or more. Since your problems are old and soon to fall off many may come off with a dispute letter. Get rid of them and then you should be in good shape for that home purchase. Having gone through BK7 many years ago before the laws got tougher, bankruptcy is not an easy fix and credit repair is a breeze compared to bankruptcy. It is also much less stressful.

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$8,000 is not near enough debt to file BK, no matter what your situation is.

Pay all of your current bills, obtain new credit and work to repair your old credit. There is no reason to file BK at this time...

Agreed 100%. Can't really add anything more! :)

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