Jump to content


  • Content Count

  • Joined

  • Last visited

Profile Information

  • Location
    Central Texas

Recent Profile Visitors

388 profile views
  1. A charged off account is not a derogatory account like a collection. Charge off is the status of the account which is derogatory so if you settle the account it goes from CO to paid. Thus you change the status from derogatory to positive. A collection account is the exact opposite. Meaning it doesn't matter what the status is of a collection account, it could be paid or you could owe $10,000. In either case the account is going to negatively affect your credit. That's reason why you want to negotiate PFDs on collection accounts because that is the only way to improve your scores. When I say in my experience it means I have done rapid re-scores for clients where the scores have gone up because we settled a charge off. U/W will rarely require a charge off to be paid because the base underwriting guidelines for FHA & VA do not require it. The only reasons for addressing a charge off are to increase the score & to keep the debt from being sold to a CA & thus creating an additional derogatory hit in the form of a collection account on credit. I also caution anyone from doing anything with their credit until a qualified lender has reviewed it & run a what if simulator first to make sure anything you address is not going to hurt your scores.
  2. Hi Ronkar, What type of mortgage did you do the DIL on? Was it FHA, VA, USDA or conventional?
  3. FHA will allow you to go up to 85% of your home's appraised value on a cash-out refi. HELOCs or 2nd mortgages typically require higher scores & lower debt to income ratios because they are in 2nd position which is a higher risk for the lender. I think FHA is going to be your best bet.
  4. Hi Seeking, I do this all of the time. Here are a couple of options. 1) Contact the lenders with your car loans & ask them for a 1 time "good will" delete of the most recent late payment. 2) Settle the charge offs. For example: If you owe $1,000 offer them $200 to settle it. This does 2 things. 1) It settles the account so you don't have to worry about it being sold to a collection agency & then being reported on your credit as a collection. 2) It changes the status of the account from negative (charge off) to positive (paid) which can increase the scores. The caveat with charged off accounts is you have to look at when it was last reported to the credit bureaus. Definitely do not do anything until a lender has reviewed your credit & given you a plan of attack.
  5. Ideally your file will get approved through an Automated Underwriting System so the lender won't require a 12 month verification of rent history. Otherwise you'll want to wait until you have a clean 12 month history. If the down payment for your new home is coming from the sale of the existing home, I can see an underwriter asking for a 12 month payment history. What type of loan did you have on your existing home & what type of loan are going to apply for on the new home?
  6. Hi Bmfmustang, Yes, it sounds doable. I would have your file pre-approved through underwriting upfront to make sure you don't run in to any issues.
  7. As long as you have made your payments on time to the trustee & you have the trustee's approval, you can be eligible for an FHA or VA loan 12 months into the bankruptcy. If your bk was dismissed & not discharged, the wait period is longer.
  8. Not really but it helps with a non qm loan.
  9. Hi LohaLonnie, If you apply for an FHA or USDA mortgage by yourself, we would only need to see your pay stubs & W-2s. The only time we would need tax returns is if you're self employed. Is your fiance self employed or 1099ed? On a USDA loan, you will have to provide proof of your fiance's income to ensure you qualify under the county income limits but that doesn't have anything to do with qualifying for the mortgage. Does that make sense?
  10. Based on your situation, if you want to buy now before you have a job in Florida, you'll have to buy the home in Florida as a 2nd home or vacation home. FHA & VA are for owner occupied only so the only way to buy a 2nd home is with a conventional loan which requires 4 years after a BK to be eligible or you could go with a non QM loan that will require anywhere from 10% to 20% down & you'll have a higher rate. If you can wait to buy until you have a job in Florida, you can go FHA or VA if you're a Veteran.
  11. You're kinda stuck. If you qualified for a conventional loan you could buy a home in Florida as a vacation or 2nd home but your bk will probably be a problem. What type did you file, 13 or 7? If you filed a 7, you aren't going to be eligible until you've been discharged for at least 4 years UNLESS the bk was the result of extenuating circumstances. If you filed a 13, you could be eligible 2 years after the discharge. Unfortunately FHA & VA both require you to buy the home as your primary residence which means you have to have a job in Florida or be allowed to work remotely with your current employer.
  12. Contact the mortgage company and ask for a one time courtesy delete. You may even want to write a letter too. Good luck.
  13. Hi Jmdorozco, I would steer clear of the big box banks & look for a small to medium size mortgage banker. You don't have to worry so much about where the lender is, it just doesn't matter thanks to technology. Don't worry about your hard pulls, especially if a lender is going to do some rapid re-scoring on your credit. You can have credit pulled 20 times for a mortgage & as long as the pulls are all in a 30 day period, all of the inquires will count as 1 pull.
  14. Congrats on getting it taken care of. Good luck.

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
  • Create New...

Important Information