April 30, 2007

Underinsured Medical Bills

I recently have some surgery done, and we thought we had decent Medical Insurance.  Turns out we were wrong.  We are just starting to get the bills from the Doctor’s office, and its looking like it will be over 15,000 dollars.

We would like to see about getting a house, and have about 12,000 in a Rolled over 401K.

We are wondering if we should use the money to pay the medical bills, so the Medical Collections do hit our Credit Report, or should be be using the money to use as a down payment on a house.  But, I’m not sure what the Medical bills will do to our credit reports.

Please give me any help you might be able to..

Thanks.
Dale (more…)

Goodwill Letter Is A Double Edged Sword

We had a car loan for about $12,000 at the end of Dec 06 it was 2 months behind with a balance of $1,876. I sent the payment for two months $577. The check was not cashed. In Feb I realized this and (with a recent change in jobs I’ve been about 2 months behind on everything). Thanks to the tax money I paid the remaining balance plus some (figuring late charges) $1,950 dropped in the deposit box (its a local credit union). Two days later there was a message on my answering machine from the credit union asking about the night deposit. No name was left. I called the credit union and they said there was no history of my deposits. They offered to accept my payment over the phone but I was furious. Determined to figure out how to play back the message for them I said I would call back in the morning. That evening I received a letter from a collection agency about the car loan. I called first thing in the morning. Reviewed the story with the collector. He was nice. He suggested calling back the credit union and making another payment. Called back they refused payment saying the account was closed. I sent a letter to the credit union with no response. A week later I paid the collection company. Needing a new car I would like to clear this all up. It is on the credit report as a charge off with a balance. I also need the pink slip to the car. I finally spoke with someone at the bank. They said they would fix the credit report and it would be changed in 24-48 hrs that was 2 weeks ago. Also I received another message asking if I wanted to pick up the uncashed check from Feb. (the check they swore they never recieved). The woman I had been talking to is now not returning my calls. I’m getting so frustrated with all of this. Any suggestions.

Jenn (more…)

Buy A Condo With A 480 Score?

I have a credit score of 480. I found a great deal on a condo for about 57000.  I have a great job and am working to rebuild my credit but want to  move on this oppurtunity. I have nobody to cosign for me. Is there any chance I can get a mortage or should I give up?

Charity (more…)

April 29, 2007

Exit Strategy

Filed under: Credit Repair,Mortgage

Exit strategy.  It’s something that’s been on my mind quite a bit lately – my exit strategy.  Yes, ladies and gentlemen, farewell to the blog!  This plan, revised in October, was to write articles and answer questions diligently (one per day average) and by the end of April 2007, there would be a total of 200 searchable articles on this site.  The Broken Credit Blog could then be a library of information floating around aimlessly in cyberspace ready at all times to assist consumers everywhere with their credit repair and mortgage research.  And I did intend to check in periodically and write an article or two every now and again when I got the itch; but the day would come when this onus would be relieved and the symbolic torch to be passed back to the blog itself.  Go now – let it circulate around the internet and find who it will – the message in a bottle thrown from an island and now it finds who and who tells them and them tells you.  So, it’s April 30th.  Goodbye.  My work is done here (shoddy as it is/was – it’s a free site ya know). (more…)

Credit Repair Seminar Now Showing!

Broken Credit, LLC welcomes you to Raise Your Credit Score.  Our free thirty minute seminar is NOW AVAILABLE and will discuss the following topics:

  • Why errors exist on credit reports
  • How to obtain a copy of your free credit report
  • The proper way to dispute inaccurate items
  • How to re-age a derogatory account to delete the derogatory history
  • How to remove collection accounts from your bureau
  • How to improve your credit score even if you have no bad credit

This free online seminar is for anyone who desires to improve their credit score THE RIGHT WAY.  Broken Credit, LLC has seen a tremendous need for the general public to have this information and it is our great pleasure to bring this seminar to you for free.

For those of you who will be buying or refinancing a home, this free thirty minute seminar could make your dream of homeownership possible and save you tens of thousands of dollars in interest!

April 28, 2007

Jumbo Mortgage

2 professionals move from rural area with limited income potential to big city with big earnings because child became chronically ill.Sold home and working on damaged credit from kids illness. No loan offers, not even bad ones! No bankruptcy or foreclosure ever. 10% down on jumbo. Why???

Inquiring Mom (more…)

Consumer Credit Counseling

I have been reading your blog over the past couple days and I am impressed and encouraged that there are still resources like this available. 

My situation is this, I had a great job making a very good living, bought a nice house and had two great kids.  The company changed hands and so did my great job.  In the 4 years since I was able to earn an MBA, and have a good job with a great company.  Unfortunatly I am still not making the level of income that I had in the past and I have exhausted all my resources to bride the gap. I am literally 6-9 months away from a promotion that will restore my financial equilibrium.  But for now, I am on the brink of falling behind, and have had 2-3 late payments on my second mortgage.  I have been close to being late on my First, but have never gone over 30 days.  I have a couple of medical collections that I am trying to settle from being int he hospital 2 years ago, which also caused me to be out of work for 2 months.  I tried to refi my second for more cashout of my home, but was turned down because my FICO was 570.  I have 5 credit cards and a personal loan that total about $45k. 

Based on your experience, what options are available?  Would the holder of my first ever consider allowing interest only payments for a period of time, such as 6-12 months?  My second mortgage holder did offer to reage my account so I could skip a payment and get caught up.  Is that a bad move?  What effect would working with a good credit counciling service have on my credit score? 

I hope I am providing enough background to help you offer some direction.  I feel like I can finally see the light at the end of the tunnel, but fear I may end up a day late and a dollar short.

George (more…)

April 27, 2007

Student Loan Rehab Deletes Default

Hello!  I have been reading the comments on this site & I first wanted to thank you for all the helpful advise & articles.  Second, I was hoping to get some advise for my own situation.  I am hoping to be able to buy a house next year but I know that with my current 589 score I won’t be able to.  The things that are killing me are the student loans that I had.  I have 4 different accounts that went to collections.  Now, these were paid off in full in August of last year & I requested a letter of satisfaction from them.  In the letter it says that if the debt has been rehabilitated, the loan is deleted from my credit history.  Yet, here we are almost a year later & I still see them show up on my credit report, both the accounts & the collections.  Before contacting them & sounding like an idiot, I just wanted to make sure that I am correct in saying that those things should be removed from my credit history.
Also, my name is incorrect on two out of the three CRAs.  Does that make a difference?

Thank you SO MUCH in advance!

Carlos (more…)

Sane Credit Repair

I discovered your web site a few days ago and the information contained on the site is invaluable. Thank you for creating this helpful resource. Here is my question. Due to some unfortunate circumstances (failed business, medical bills); I have $48,967.00 on three credit cards. If I were to lose my job, I would of course go quickly under financially. I am current on my payments; my FICO is high however, I want to buy a home in the next 5 years. My strategy is to stop using the cards, get a second job, pay at least half of the credit card debt in 3 years, buy a home and then get a second mortgage to pay off the balance of the cards. I have gone online to see what payment I would have to pay monthly in order to do this.

Does this sound like a sane plan? What suggestions do you have?

Stephanie (more…)

Should Account Be Listed As ‘Disputed’?

More than a year ago a private school my son attended sent my account to collections. I had withdrawn my son from the school a few days after school started and they sent a bill much higher than what the year’s tuition was. I negotiated the bill with the school and paid them for three months’ tuition although he did not attend school there. They sent it to collections in April 2006. When I received the letter in the mail, I disputed the bill. The collections agency continued to barrage me with phone calls. I then sent them a letter asking them for verification of the debt because there was a 4000.00 discrepancy. I never received verification of the debt, the company ceased phone calls, however they did three hard inquiries on my credit report in Oct, Nov and Dec 2006.
My credit score went from 720 to 658 where it remains today. Recently I tried to take out a loan and was denied the loan because of the inquiries. My salary is 112K per year and there should be no reason to deny my loan.

Is the collections agency required to state the debt is under dispute?
What can I do to handle this? How long will the situation continue to follow me?

Do I have any recourse?

Thank you,
Julie (more…)

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