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Old Negs Want New Mortgage


rodeogal
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We currently have a loan on a mobile home and are wanting a "real" house. Our FICO scores are about 615-620. Our truck loan is 2 years old with perfect history. Two small cc are also 2 years old, perfect history. Our current mortgage is 11 years old. Delinquent 120 days in spring 2005. Perfect since that time.

We have a couple of CO accounts and a couple of collection accounts. The newest of these is from 10/2006. All amounts are small - under $1200 total owed.

My question, if we are able to PFD on the accounts will that boost our scores any? If we simply ride the wave for another year will that help our chances of getting a loan? Not really sure which is the best way to boost our scores. Thanks.

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We currently have a loan on a mobile home and are wanting a "real" house. Our FICO scores are about 615-620. Our truck loan is 2 years old with perfect history. Two small cc are also 2 years old, perfect history. Our current mortgage is 11 years old. Delinquent 120 days in spring 2005. Perfect since that time.

We have a couple of CO accounts and a couple of collection accounts. The newest of these is from 10/2006. All amounts are small - under $1200 total owed.

My question, if we are able to PFD on the accounts will that boost our scores any? If we simply ride the wave for another year will that help our chances of getting a loan? Not really sure which is the best way to boost our scores. Thanks.

This is how I got my score from the low 500's to 797 (Mar/09).

First getting having good credit is earned not given.

Keeping your payments on time, plus your balances below 50% / 25% of the credit limit, etc ... are ways to have good credit.

There is also a way to have excellent credit

One thing that I did to "turbo charge" my score, I started to send extra into my installment debt.

I paid off my car early. My wife and I make extra payments on our mortgage. Four years ago took out a 15yr loan for my boat, have less than 4yrs left.

Years ago my dad use too scream about the importance of having good credit. It took my many years to realize this.

Good Luck.........:)

Edited by 2ndTimeAround
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Yes, if you can PFD those old accounts that will boost your scores. All you need in today's environment is a 620 score and you are very close. Don't pay off anything that you can not get -IN WRITING- from the creditor an agreement to delete upon receipt of the payment. "if it wasn't written, it wasn't said".

If that won't work, you can count on 1-3 increase in your scores as time goes on.

Charles

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Getting collections removed completely is bound to boost your score, so I would suggest at least trying PFDs.

It's a tough mortgage market, your scores are important, but they will sometimes look a bit deeper...however having unpaid collections on your report would be a killer.

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It depends on how old the collections are. Most of the time if they are over 12 months old they are not taken into effect for a loan approval.

I caution you to not pay any collection that won't PFD. It will just lower your credit score. If your LO says that you have to pay them off, don't pay them until closing. You can bring the funds to the title co/attny office and give them the money and they will pay the account off.

Charles

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