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CR down to three negatives...order of operations...?

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Posted (edited)

Hi. Thanks everyone for push out of hopelessness. My scores have increased about 30 points each, and this without reflecting that I paid off a $2500 installment loan a week ago. Total paid off is about $7000 in 6 weeks.

 

·       My goal is to buy a home with an FHA loan around October 2021.

·       I have $2000 per month to put toward resolving these negatives.

·       I don't know if I can call BBVA and Net Credit and work out payment arrangements, or if I need to have all the money now. Scared to call—I keep hearing “don’t talk to them.”

 

My question is what order to put these in based on how quickly it will impact my credit score.

My options seem to be:

1)    Resume student loan payments ASAP, over the next year just save the money monthly and pay BBVA first and then Net Credit, then down payment.

2)    Pay BBVA first, resume paying student loans in September and then pay Net Credit over the next 12 months.

 

Remaining negatives on credit report:

Defaulted Student Loan

·       Wait 1-3 months and use that $850/month to work on the other two items?

BBVA 

·       $5600 charge-off as of Sept 2019

·       Planning to just pay it, assuming I'll have to pay in full but not sure

Net Credit Financial Services

·       $6900 charge-off from Sept 2019

·       Planning to just pay it, assuming I'll have to pay in full but not sure

 

When do I apply for the mortgage, by the way? How far ahead of when I want to close?

 

THANK YOU!!!!

 

Edited by L99

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With respect to the defaulted student loan, I would HIGHLY recommend getting with the Ombudsman to put it into rehab...this allows you to pay it down and see a removal of the negatives in something like six months.  The loan can then be consolidated elsewhere if a better rate existed.

 

No idea who Net Credit is, so my first guess is this was business related...if that is the case, standard suggestions may be irrelevant since FDCPA protections generally won't exist.

 

The BBVA chargeoff is one that you should address while it is still relatively fresh.  I could see them getting twitchy with the litigation trigger, which then sticks you with another $5K or so in court costs that get tacked on to the balance.

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2 hours ago, centex said:

With respect to the defaulted student loan, I would HIGHLY recommend getting with the Ombudsman to put it into rehab...this allows you to pay it down and see a removal of the negatives in something like six months.  The loan can then be consolidated elsewhere if a better rate existed.

 

No idea who Net Credit is, so my first guess is this was business related...if that is the case, standard suggestions may be irrelevant since FDCPA protections generally won't exist.

 

The BBVA chargeoff is one that you should address while it is still relatively fresh.  I could see them getting twitchy with the litigation trigger, which then sticks you with another $5K or so in court costs that get tacked on to the balance.

 

Thank you.

 

  • I have just finished working out a rehab agreement for my student loan, so CHECK. I didn't think it was an option for me. I can have that underway while making payments elsewhere, but also have to option not to pay until September due to CARES Act. I will pay unless there is a compelling reason to wait. 
  • BVAA--I will call them Monday and work out a payment arrangement on the outstanding balance.
  • This leaves Net Credit. https://www.netcredit.com
    • Net Credit is a personal sub-sub-sub-sub prime lender. My interest rate is bananas on that loan...32%. Dummy. Well, desperate.

 

Thanks or the help in deciding on an action. Progress was made. I'Il just have to figure out how best to manage Net Credit.

 

I guess I just call them and ask to set up a payment plan...?

 

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If you have the funds to deal with paying the rehab, I would highly encourage skipping the forbearance.  Sooner you get the six or however many payments, the sooner it is 'rehabbed' and the negative reporting gets removed.  Eye on the prize...

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