Need some advice

[deleteitnow]

I have been working on my credit for over a year, and saving as much money as possible, too. I would like to buy a house as soon as I can, but I am seeking guidance before I have a mortgage inquiry on my report.

 

I did a score simulator through USAA, and it showed if I paid off my current revolving accounts, my score would improve from mid 580s to mid 640s. If I got the three charged off accounts to stop reporting 60+days late every month, the score would increase to 720+.

 

I'll have the current accounts paid off this month, which I think from a score standpoint puts me in FHA territory. My concern is the old charge offs.

 

I had a Ch7 BK in 2003, discharged in 2004.

 

In 2008, I lost everything, and there are still 3 accounts I need to deal with.

 

HSBC charged off in 2008. They sold to Arrow, which got a judgment in 2010 $1500. Arrow sold to LVNV 9/2011, and the balance is now $2300. I have been disputing LVNV, done the one-two punch, to no avail. If I want to pay this off- who gets the check, and how to I get both trade lines cleared up, even if it's just to show paid?

 

Capital One charged off in 2008 (times two). One acct is $2300, the other $7000. They report every month that it's late, which I'm told they can do, since I haven't been paying on it. DLA is accurate in 2008.

 

I would appreciate any guidance you can offer. I hope it's not all for naught since I had lates after a BK. I tried sending each of them pay for delete letters last summer, but there were no takers. I have money saved up if I absolutely need to pay these off. I just don't want to move in that direction without asking here first. I'm concerned about the date of last activity resetting from 2008 to present.

 

Thanks for all your help!

[luckydriver]

id definitely post about the COs and dates and all your concern in the credit forum

 

but hopefully the mortgage guys can answer about your current lates..those may be an issue

[megaguru]

I do not have personal experience to speak from but I have seen numerous posts in the credit forum concerning lates after BK on one's credit report, and it's impact on obtaining a mortgage. While I can't say that anyone has said it's impossible, it seems like the general consensus is that lates post BK pose a very large challenge. You may want to see about goodwilling the lates (if possible).

[luckydriver]

and i'm sure that you cant have lates in the past year..they just wont forgive that kind of thing.

[Brian B The Loan Professor]

Bads of any type post BK create an issue for an underwriter - I would continue to work to clean up the tradelines - get as much time as possible with on time credit and then try - assuming the scores are better after the above you will have a much better chance of getting approved - Scores alone arent always enough.

B