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Seneca

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  1. Exciting times for me. I'm getting a house!!!! I'll tell the whole story when I'm done, but short story is I got my scores up with a median 650 mortgage FICO (up from around a 550 FICO 8 in January 2016 - its been a long hard journey). I am under contract for the house of my dreams (5BR so each of my kids gets their own room), at a price way cheaper than I expected for my neighborhood, and now have locked in rates with both Quicken and Keller Mortgage. I'm a bit stumped on the decision on which lender. The rate is the same (4.25 with 10% down for a $425k house ) and the total lender charges on the loan estimate are within $300 of each other (they've each been competing against the other and keep coming down). Quicken's online portal is 100x easier to deal with, they seem to be able to collect more info without me providing a million statements, and seem to have a streamlined approach compared to Keller. Quicken is offering $266 PMI on the Loan Estimate and Keller is offering $337. The Quicken guy is total jerk, but the other guy isn't much better. However, the Keller guy is nearby and knows my agent well. The Quicken guy is located God knows where. I guess I'm leaning toward Quicken but wanted feedback from the forum. Does it matter which one I pick other than who offers better rate? What is the reputation? Is Quicken better or worse than Keller Mortgage? Does who does the servicing of the loan matter? The Keller disclosure said they have no plan to service the loan, while the Quicken said they will. That makes me lean more toward Quicken. If Quicken put the PMI as $266 on the Loan Estimate, can they change it later? The Keller broker said they could, that it was not fixed. The Quicken guy didn't give me a straight answer. Thanks for your help with this.
  2. Thanks everyone. I'm not currently in the mortgage application process, just planning to apply in a few months. This Discover judgment never made it to any of my credit reports. The CRAs all have it as a chargeoff by Discover in 2011, reporting every month as $6,200 balance chargeoff. The deal I reached with the law firm is that it will be marked as "paid in full", which is what my mortgage banker said to request as there was no way I'd get it deleted. With other chargeoffs from 2011, my total utilization currently is at 60% (all 2011 debt, no current balances) and total revolving debt is $42,0000 (including the Discover $6,000). With this balance dropping from $6,000 today to 0 whenever it is reported, it will drop my total revolving debt to $36,000 and I think my utilization will go down to 51%. Not sure if that will do much but keeping my fingers crossed. I had to do it at some point, so I figured do it now. As I said, if it isn't enough to get me to mortgage FICO scores to 620, I'll pay off some of the BOA chargeoffs until I hit it.
  3. Thanks Oldblue. I asked one mortgage banker (not necessarily the one I'll go with) and she quoted me as follows: "The max loan amount for a 620 or 640 score is $424,100 (conventional loan) so, I will use this loan amount for my examples. A 700 score is required for a jumbo loan (over $424,100). The purchase price would be $474,100. · 620 score – 4.875% interest rate · 640 score – 4.75% interest rate" I did the amortization and that would make about a $6,000 difference after 5 years. So it is certainly not worth spending $6,000 to raise it 20 points.
  4. So last week I settled a judgment I had with Discover. The law firm has said it will notify Discover and that the account was paid in full. I am confident it will be deleted eventually, but I'm planning my mortgage application for August and anxious to see how it bumps my score. I am not inclined to sit back and wait for the law firm to tell Discover and Discover to tell the CRAs. My idea is to dispute it by phone and see if that expedites. Any objection to doing that?
  5. Oldblue and Mendelsohn, You are giving me really good advice.and I do appreciate it. Maybe I will pause a bit more, consult with a ffee-based financial adviser on my options and the true financial hit of each path based on my specifics.
  6. To answer the questions, I have zero carried balance on my active revolving accounts, paying them off each month. However, my credit person recommended to stop using them other than the nominal balance on two old ones and live on cash so I don't accidentally get dinged on a reported balance. My only real credit baddies are the 2011 chargeoffs. I've been working for 18 months and got everything removed other than some OCs that wouldn't budge despite everything I threw at them. So at this point the only credit repair I can really do is to settle those debts that are actively reporting but I want to do that only to the extent that the benefit of settling outweighs the cost to settle. That's been my dilemma to figure out that fine line. Here's how I came out: BOA is refusing to offer anything less than 40% for six year old debt with no judgments attached, so I'm trying to figure out if I can get my mortgage FICO to an acceptable place without paying them off. I've now settled with Discover over my judgment, and the tradeline will very soon show a 0 balance and paid in full (I have that in writing). I figure I had to do this no matter what. Plus, when I ran the MyFICO score simutor, it said reducing my total revolving balance by 6300 in one month (which is the net effect of my settlement) would raise my FICO 8 by 30-40 points. I get it is not a guarantee, plus it doesn't say how it affects the mortgage scores, but I just need 13 points for my midscore to hit 620, so I'm hoping the Discover balance will get me most of the way. Plus I haven't opened up a new account since June 2016 and my chase last reported in May 2016, so the credit guy thinks I'll get a boost from that and stop using my cards other than a small balance on two oldest of them. So, we'll see how these steps work. I'm not on a strict timeline, just want to buy by end of year, so I have time for trial and error to raise my score just enough with the least payments. I'm not real worried about long-term rate as I have a high income and the mortgage will be 20-25% of takehome, my scores will go a lot higher in a year and I can refi if my rate is too high, plus I'll only be in the house 6-7 years or so (I've got 4 kids and will downsize once I get my emptyish nest). If it doesn't raise my score high enough, I may pay off just one of the BOA accounts and see what that does. Thanks for the help and of course all the education on these boards!
  7. Thanks Edamfles. I really appreciate you responding as it gives me some feedback on whether my gut is right on this one. I think I'm going to submit an application with a mortgage broker in town that is highly recommended and see what they can do for me without paying those BOA accounts off. While I want to buy by the end of the year, it actually is better for me to wait until Nov or Dec. Any one else have any thoughts on this, even if just off the cuff or your gut reaction?
  8. I'm paralyzed about about what to do next. I am going to purchase a house by end of year. I have several 2011 chargeoffs that are dragging down my score. I’m 50 years old and a single mom and have been waiting for a long time already to buy. And yes, I know I could wait until end of next year and this issue goes away, but I've already decided not to wait, so I'm looking for feedback from all of you on whether to pay off my chargeoffs or just move forward with them there. A mortgage expert I hired advised me to settle the Bank of America and Discover debts if I want to buy this year. I know I need to pay off Discover as it is a judgment that shows up in a Lexis search, but I'm not sold on the importance of settling the BOA debts. It would cost $13,500 to get the BOA balance to zero, even if marked paid for less than balance owed. His advice was that I needed to put this money in BOA as even though my down payment pot would go down from $50k to $37k, it would pay off in lower fees and I'd be eligible for lower down payment. But I'm finding myself very reluctant to follow this path. It seems counter-intuitive to me to thrown $13,500 down the drain on this and that my scores are good enough to get a mortgage, even if not the best rate. If rates stay low, my plan would be to refinance in a couple years when my credit is better. I will only be in the house approximately 5-7 years tops (long story there), so I'm not locking in a 30 year rate. I'm inclined to get the best mortgage I can with my credit scores even with the BOA chargeoffs. Application Details • House in my school district is $450,000 to $500,000. My district is very undervalued in my metro area (where houses like the one I'll buy normally would be closer to $800,000 in areas with similar schools, crime and commute downtown). I'm very comfortable that house values here will continue to outpace the appreciation across this area. • FHA in area is $424,000 • Will have $80k in cash by August - planning on $50,000 in cash for down payment and keep $30,000 in reserve so I'd have 10% down (unless I use $15k to settle BOA and Discover and then I'll just have $35,000 or 7%) • High income ($150k) and no debt other than car loan • Mortgage FICO scores: EQ 620, TU 590, EX 607 Credit at a Glance: • History – 15 years • Total accounts – 23 (18 current, 6 past due) • No collections or public records – cleared out last year with guidance from this board • Last account opened: Car loan in June 2016 • Last late payment: 2013 Here’s the baddie accounts: • Bank of America – status date May 2017, last activity Oct 2011, balance $14,000, charged off • Bank of America – status date Apr 2017, last activity Sept 2011, balance $6,000, charged off • Bank of America – status date May 2017, last activity Oct 2011, balance $11,000, charged off • Discover – status date May 2017, last activity Aug 2011, balance $6,000, charged off, followed by judgment in 2012 that appears in Lexis search of my name but not on my report • Local credit union revolving – status date Nov 2013, last activity Sep 2010, balance $5000, charged off • Chase – status date May 2016, last activity Jul 2011, balance $9000, charged off I also have active and never late AmEx ($10k, opened 4-2016), WF Secured ($10k 5-2016), CapOne Secured ($3k 11-2015), Ann Taylor (11-2015), Walmart, Target, Amazon and Kohls (all opened 4-2016 with collective $1.5k line)
  9. I posted my question in Mortgage, but realized it is really more general about bringing up my scores and dealing with chargeoffs. I recently consulted with a credit expert suggested by my realtor to help me clean things up before I apply for a mortgage. I’d like to get feedback from the forum on whether you agree with his advice. FICO 3B Report · FICO 8 - EQ 617, TU 647, EX 612 (FICO Mortgage scores: EQ 620, TU 590, EX 607) · Reasons in order: you have a serious delinquency or derogatory indicator, you made heavy use, you have one or more accounts showing missed payments or derogatory indicators, you have past due on your account Credit at a Glance: · History – 15 years · Total accounts – 23 (18 current, 6 past due) · No collections or public records – cleared out last year with guidance from this board · Last account opened: Car loan in June 2016 · Last late payment: 2013 Here’s the baddie accounts: · Bank of America – status date May 2017, last activity Oct 2011, balance $14,833, charged off · Bank of America – status date Apr 2017, last activity Sept 2011, balance $6,391, charged off · Bank of America – status date May 2017, last activity Oct 2011, balance $11,011, charged off · Discover – status date May 2017, last activity Aug 2011, balance $6,112, charged off, followed by judgment in 2012 that appears in Lexis search of my name but not on my report · Local credit union revolving – status date Nov 2013, last activity Sep 2010, balance $5041, charged off · Chase – status date May 2016, last activity Jul 2011, balance $9472, charged off I also have active and never late AmEx ($10k, opened 4-2016), WF Secured ($10k 5-2016), CapOne Secured ($3k 11-2015), Ann Taylor (11-2015), Walmart, Target, Amazon and Kohls (all opened 4-2016 with collective $1.5k line) The advice I received was: · Get the Bank of America accounts to zero balance through settlement for less than owed. I owe $32,000. I contacted them and they said that I could pay $12,800 (40%) or I could provide my income information and settle for $8400 (25%). My problem is I have a high income, but high expenses as well due to where I live and the number of my dependants, so I’m reluctant to provide that detail. · Settle the Discover judgment. I owe $6112. · Bring all accounts except the two oldest to zero and don’t use for next few months. The two oldest bring down to less than 2% utilization. (Edit - I should add that I asked about requesting obsolete removal and he said don't. I run the risk of the report date on the credit union charge off being current. He said the Chase one is ok since it is almost a year since it reported.) Any thoughts or comments from the experts on this strategy would be appreciated.
  10. Credit is great other than the 2011 chargeoffs and judgment. No lates since 2013.
  11. I’m planning to apply for a mortgage in a few months, with a goal to purchase by end of year. I consulted with a credit expert suggested by my realtor to help me clean things up before I apply. I’d like to get feedback from the forum on whether you agree with his advice. I know I could wait 18 months for the baddies to fall off, but I've decided to proceed this year and want to see what I can do with my credit score. Application Details House in my school district is $450,000 to $500,000 FHA in area is $424,000 Have $50,000 in cash for down payment. Very high income FICO 3B Report Mortgage scores: EQ 620, TU 590, EX 607 Reasons in order: you have a serious delinquency or derogatory indicator, you made heavy use, you have one or more accounts showing missed payments or derogatory indicators, you have past due on your account Credit at a Glance: History – 15 years Total accounts – 23 (18 current, 6 past due) No balances on any credit other than 2011 chargeoffs and car loan No collections or public records – cleared out last year with guidance from this board Last account opened: Car loan in June 2016 Last late payment: 5 years ago Here’s the baddie accounts: Bank of America – status date May 2017, last activity Oct 2011, balance $15k, charged off Bank of America – status date Apr 2017, last activity Oct 2011, balance $6k, charged off Bank of America – status date May 2017, last activity Oct 2011, balance $11k, charged off Discover – status date May 2017, last activity Aug 2011, balance $6,112, charged off, followed by judgment in 2012 that appears in Lexis search of my name but not on my report Local credit union revolving – status date Nov 2013, last activity Sep 2010, balance $5041, charged off Chase – status date May 2016, last activity Jul 2011, balance $9472, charged off I also have active and never late AmEx ($10k, opened 4-2016), WF Secured ($10k 5-2016), CapOne Secured ($3k 11-2015), Ann Taylor (11-2015), Walmart, Target, Amazon and Kohls (all opened 4-2016 with collective $1.5k line) Credit Expert's Advice Get the Bank of America accounts to zero balance through settlement for less than owed. I owe $32,000. I contacted them and they said that I could pay $12,800 (40%) or I could provide my income information and settle for $8400 (25%). My problem is I have a high income, but high expenses as well due to where I live and the number of my dependents, so I’m reluctant to provide that detail. Settle the Discover judgment. I owe $6112. Leave Chase and the old credit union accounts alone Bring all accounts except the two oldest to zero and don’t use for next few months. The two oldest bring down to less than 2% utilization. Thanks for your thoughts
  12. I'm looking for people's experiences trying to settle with Bank of America (BOA). I walked away from $23,000 in 2 different accounts about 5 years ago. It's now past the statute of limitations. I could wait for it to fall off in another 2 years, but it's the main problem with my credit, so I've decided to settle as part of my plans to buy a house this year. I've consulted with two mortgage brokers and both have recommended that I settle if I'm going to buy a house this year, even if not pay for delete. Specifically, - If you have settled with BOA, can you share with me your experience, what went well and if you made any mistakes? - Who do I talk to at BOA and is there anything specific you recommend I say? - What is the best approach to engage with a decision-maker? - Is it better I put it in writing or should I try with a credit risk manager? - What percentage of the original amount owed did you pay? Does BOA have a set percentage based on time or is it all in the discretion of the decision-maker? Someone told me to expect 40-50% settlement rates, even this long after. Is that others experience? - Is there a good form to make sure that the balance is reflected as zero after settlement? Thanks!

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