April 30, 2008

Countrywide Fast & Easy

Filed under: Mortgage

A federal probe of Countrywide, the nation’s largest mortgage lender, is turning up evidence that sales executives at the company deliberately overlooked inflated income figures for many borrowers, people with knowledge of the investigation say.

Some of the problems are surfacing in a mortgage program called “Fast and Easy,” in which borrowers were asked to provide little or no documentation of their finances, according to these people and to former Countrywide employees.

Source – Wall Street Journal

Option Arm Dilemma

Filed under: Mortgage,TILA

Hi Paul,

I need some help, or at least some honest answers.

I filed chapter 7 bankruptcy in January, 2008. My attorney led me to believe I could keep my home even though I presented him with certain issues that I was concerned about and am now finding that my worst nightmares are coming true.

I made the mistake of getting into an interest only option ARM 3 years ago. I signed the papers just prior to having heart surgery and was under alot of stress. This loan is in my name only. I also did a quit claim deed to take my husband off the deed since the loan was solely in my name. At closing I find out that there is a 3 year pre-payment penalty, but I signed since I was looking for a lower rate (had a great loan that I should have just stayed in).

After recovering from surgery I tried to see if I could do anything to get out of the loan. The mortgage company would not help me without refinancing and paying the 12k prepayment penalty on top of refi costs. The broker gave me a letter in writing stating they would refinance after 2 years and pay off the prepayment penalty if I was still wanting to do a refi at that time. When 2 years was up I found out the broker had gone bankrupt as well. So I am now at the end of my 3 years but unable to refinance since I just filed chapter 7.

I would like to put our home in my husbands name if possible, however we own our own business and I dont think his income is high enough to qualify, and his credit isnt great (715 last time I checked).

My attorney treats me like I am a nuisance and advises to just keep paying the mortgage to stay or let it foreclose and walk away from it. He said he wouldn’t re-affirm because we are upside down now due to my principal balance going up and home values going down. I am working with Adams County (Colorado) to help me with a possible loan modification but they tell me the lender so far will not deal with them either (probably because of the bk).

We like our home, we like the area, we like the school our son is in, and we want to stay in our home but I need to find a way to do that. Right now we owe 265k and the value is probably about 255k. Also the broker screwed up and now I find out that the property deed is still in both of our names. So here are the questions-

1- can I do a loan modification with a ch. 7?

2- or could I stay and pay the minimum payment (while the principal balance rises- should have another year before it resets to double the min. pymt) while I increase my husbands pay (pay him a higher income and dont pay myself this year) and keep his loan obligations current to improve his credit and then do a short sale to him in a year?

3-Also can I submit a quit claim deed now to get him off the deed?

4- Is there any benefit of my trying to sell the house (to whomever) or do a deed in lieu so that I dont have a foreclosure on my credit report too? I cant see going through the trouble since I already have the bk on my credit report, but dont know if it will affect my husband since he is still on the deed?

5- Or does it sound like there are too many obstacles and I should just quit paying, let them put it in forecloser, save the money I would noramlly use for the mortgage, and walk away now?

Sorry this is so long winded but there are alot of kinks involved. Just want to know what to do so that I can sleep again.

Rae Jean (more…)

April 29, 2008

Credit Repair 1-2-3

Filed under: Credit Repair

Hi Paul,

1. I have a collection from ’95 that I was advised to try to satisfy and made some recent payments. Is there still a chance to have the debt removed since the date it was originally opened was back in ’95?

2. I have some other accounts that went to collection back in ’02 that were sold to a collection agency and the collection agency is reporting it as currently 90 days late for the past few months, is that legal?

3. I found some medical collections on my credit report that were satisfied by my employer under my insurance policy, but they are on my credit report. Shouldn’t those be able to be removed since technicaly it wasn’t my obligation to pay them, it was my insurance companies obligation?

Thanks for you help.

Josh (more…)

Paying Collections May Reduce Your Score

Hi. I check my credit report last year and many accounts were in collections and so forth.

I have paid off all of them and have also negotiated settlements.

Back then my credit score was 536 but when I checked today it was a little over 400.

I do not understand how why my credit score dropped, even though I paid many accounts in full and a few with settlements. All of my other accounts are current.

Can you please provide some clarification?

Joshua (more…)

Me & My FHA Subordination Agreement

Filed under: FHA Loan

In July 2004 my husband and I purchased a house for $535K and put something like $120K down (from the sale of our condo). We got one of those horrible, awful option arms. It’s reset a few times and the minimum payments have nearly doubled, from about $1400/month to over $2700/month.

After about a year, we took out a $100K equity loan as well. It’s down to $94K and the payments are $700 or so.

Here’s the thing: we’ve been making minimum payments for almost 4 years and, because both of us have gotten steady raises/COLAs every year, we’ve been able to afford the minimum payment, but nothing more. We’ve NEVER been late. We just have 40K in negative amortization to our names and nothing to show for it, except a mountain of credit card debt incurred when our monthly income has been maybe $100 or so too short.

I recently refinanced my debt to save $200+/month so that it’s more affordable. The rate on our mortgage is currently 6.9% and is due to reset again in 2012. Until then, we are in limbo. Our FICOs are good – his high is 742 and mine is 699. No one, but no one, will touch us when it comes to refinancing because we have no lates. I had tried a short refi but that won’t happen. Our bank and 10 million others will not refi us the traditional way because we are so upside down. What do we do now?

Nora (more…)

April 28, 2008

Bank or Debt Collector?

I had no idea about anything to do with credit reports, credit scores and the like until my husband and I decided that we wanted to buy a home.  After reading this site for two hours today (and I am not done yet) I have discovered that I know less than nothing but I have a question that needs an answer.

My husband had a debt with First Bank of Marin for a credit card.  The debt was removed last year as the 7 years was up.  My husband went to get a consolidation loan from our credit union as the mortgage company rep told us that we needed to brush up his credit some and pay some of the old debts and do some disputes and so on.

When the credit union pulled his credit report there was a debt on there from Credit One Bank that had been a debt to First Bank of Marin.  They are claiming that the debt originated 2/2008 with the last report as of 4/2008.  The problem is that this debt just showed up there after the mortgage rep pulled our combined reports and sent them.  However, if this is the Bank of Marin debt as claimed then how can they do this since it’s past time?  What should we do about this and what steps can we take?

There are other questions that I have but I am going to read this informative site some more and see if I can get answers that way first!  Thank you for putting this up to help!  I know less than nothing and am quickly learning!

Holly (more…)

The Road To Homeownership

Filed under: Collections,Credit Repair

The Road To HomeownershipHi Paul,

Ok, here’s the deal:  We are trying to become first time home owners. 

We want to get a mortgage in my husbands name because my credit is beyond repair.  His credit report shows 8 collections, 6 of which are medical, and the other 2 are a cable and gas bill.  We want to pay these off. 

The 6 medical collections total $1399.00 and the other two are $504.00.  Which ones should we focus on?  Do medical collections count towards your credit score?  I heard that they show on your report but dont affect your score, not sure about that??? 

I had asked you where we should start, about 8 months ago, and was told to open up some accounts…since then we opened 4 credit card accounts and have been paying them on time and they show as accounts in good standing. 

I know that I should do a pay for delete, but would like some advice.  Is getting a home way way out of the question or do we have a chance???  Thanks for your help!!

Heidi (more…)

Virginia TILA Attorney

Filed under: TILA

I’d like to introduce a TILA consumer lawyer to the Broken Credit Bloggers in Virginia.  Remember the Truth in Lending Act (TILA) permits certain loans to be rescinded up to three-years after the closing date; it’s a powerful means of re-negotiating with your lender, particularly for those of you in Virginia who are facing foreclosure or who have been the victim of predatory lending.

Any Broken Credit Bloggers looking for a consumer lawyer knowledgeable in TILA can contact Jim Bowman, Esq.

Jim Bowman
FerrisBowman PLLC
9020 Stony Point Pkwy Suite 100
Richmond, VA 23235
ph:  804-323-9144
fax: 888-251-6228

Email: Jim at FerrisBowman Dot Com

Problems Solved

Filed under: Credit Restoration

Not a question but a praise.

Your info has me clean up some old problems thanks.

Good too see you know your scripture. God bless.


April 26, 2008

Satisfy Thy Judgment

Filed under: Credit Repair,Judgment

I listened to your seminar.

I have both credit card and hospital bills that went delinquent then to collections and one judgement.

I have the funds to pay card and bills completely OR judgement.

Which one whould help my credit score most? Thank You.

Mike (more…)

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