I cosigned for my 21 year old to buy a car.  She was late on her july payment and I didn’t find out until the underwriter repulled my credit prior to closing on a refinance of my mortgage.This is the only negative mark on my credit and it reduced my score by 40 points.  I never received a notice from ford regarding the late status.  They didn’t even have my phone number or address.  Is it fair reporting practices to forgive a one time late paysment which is the first one in 12 months? What is my option??

Tenika (more…)

Hello Paul!

Can you tell me how short selling 3 rental homes will affect our credit? Our scores are 750 currently.  Haven’t found any information on the impact of 3 homes compared to doing just one. Is it true that actual missed payments on the loans is what hurts your credit more then the short sale itself? I currently have offers on all 3 and am about to be 60 days past due on the loans. We have two rentals in AZ (a non-forgiving state) and one in CA.

Just wondering if we should try and make arrangements with the collection dept to lessen the impact on our credit report or does this not even matter? Once it goes to collections, it is done? Do you know that if we do pay on the loans, will this affect the lenders decision to accept the short sale?

Any advice you can give would be great. Thanks so much for your time and expertise.

Gina (more…)

I’m trying to decide on the best course of action to improve my credit score as quickly as possible.  Like everyone else, right?  Here’s a quick overview of my situation:  There are 14 accounts on my credit report, 10 of which have negative history on them for late payments and serious delinquency.

The good news is that my credit situation has drastically improved, and I have paid all of the account to zero balance except for one.  This same creditor (it was a credit union) has three accounts listed on my report.  I had two accounts with them – an auto loan and a credit line.  I’m not sure why the three accounts, but the one that shows a balance doesn’t even have an account number.  The balance is around $3500.  I should also note the date of last activity was July, 2006.

My question is what is the best advice on how to handle this account that would best affect my score quickly?  They haven’t tried to collect on this in over 4 years.  It doesn’t seem likely that they would start now.  But the balance of the account makes my revolving credit ratio appear to be 100% because all of my other accounts are zero balance and closed.  I have read about pay for delete letters.  Is that possible in this case?  If so, how much should I offer them for settlement?  Are there any better solutions?

As it stands, my credit score is 609.  I’m looking to purchase a house as soon as possible.  I need at least a 620 to get there.  Any thoughts on how long it would take to raise my score to 620?

John (more…)

Paul:

I am in a trial modification with CHASE, ending April 2010. Payment in trial mod ok, but not sure about after that.  I am filing Chapter 13 bankruptcy the same month to strip my second mortgage and protect against an investment property that was foreclosed on. 

I would like to know if we can still pursue a short sale after we file, which is of interest to us after reading about the changes supposed to go in effect April 15th.  We are upside down $75000.00 in our house. 

We are trying to minimize the hit to our credit for when we want to buy another home down the road.  Is there any difference in trying to sell, or should we give the house back in the bankruptcy?

Thank you for all the useful information we have found on your site!

Jason (more…)

My husband and I were one week from closing on a house when we got a denial call from the mortgage company. When they check his credit to prequalify they found that My husband has or had 0 credit. When they went back to check our credit before closing, they found a 2600.00 collection debt on my credit. upon some investigating it appears to be my husbands debt. It appears that they placed it on my credit report, instead of his is that legal?

he sublease [without having him sign any papers] his apartment to a friend who moved out oweing rent. I had nothing to do with that. wh and how can they go after me?

Curry (more…)

We built our dream home in 2007, and up until the day before closing thought we were in heaven.  We found out the day before we closed that the good faith estimate on what our motgage was WAY off!  Like $1000 off. Not wanting to walk away from our dream and the money we put in to it, we signed. 

We put it up for sale right away, hoping that we could break even, and nothing. We kept up on the motgage for awhile, to the detrimate of our other obligations, but we could only keep it up for so long. We tried renegotiating our loan, but again…dead end.

We foreclosed on our home in Feb 08 (according to lender 2/12/08 was when forecloser was completed, and county record show transfer of title on loan happening at auction, 2/13/08).  We had a first and second mortgage.  We were defeated and tired. 

We moved and have started to rebound from the process.  We did a little reseach a few months prior to the foreclosure and found out that the home sold for more than we owed on the 1st and that the 2nd had “charged off” on our credit.  We called to find out how to help our credit due to the charge off and were told that we could settle for more money than we had available to us, or basically do nothing.  They (the mortgage lender) said that they would never persue the debt, but that it would stay on our credit. 

We just found out that we qualify for a VA Loan and that there wait after foreclosure is shorter than a conventional or FHA (2 years vs 3 years).  Excited and ready to move on, we started to check proir to the “timeline’, just to make sure we would be able to purchase another home.  So…found out that the “2 year” wait starts the day the foreclosure hits your credit, same with the the 2nd mortgage charge off. It is only 3 month shy of the “2 year” mark for us. But during my checking process I found out that up to 8 months after the foreclosure was reported my mortgage company continued to report me as late??? Can they do that?

They said that the sale wasn’t finalized until 10/08. But again, according to county records the title transfered from us to the buyer on 2/13/08.  Also, the second is continuing every month to report a charge off on my credit up to now!!  How can they do this? 

I understand that it is considered a debt that is still outstanding and that they have deemed it uncollectable, but how can they continue to “re-new” that debt? Is this legal? If I am trying to rebuild me and my families life after foreclosure, how am I to do that if the lender can continue to report me like it just happened?

I did contact the leaner,who by the way is the same for both mortgages and where originated at the same time, said that the 1st credit reporting months later was because of the sale not being complete until 8 months later.  And the 2nd, because we still “owe” the debt they can continue to report it.

I am so tired, please let me know what to do?  Fight…give up??

Defeated,
Gary and Jeni (more…)

Brian,

Thankyou you have been a great help. I have sent letters to the bureaus about inaccurate information. They keep verifying what wording can I use to make they delete my inaccuracies? Please advise thankyou!!

Diane (more…)

Your website has been very helpful, thank you!
I was unable to find this question in your site.

Whether the mortgage company can still report to the credit agencies the lack of payments during the short sale process?

I just received their short sale packet, but I am unable to pay. Can I dispute it if they put something on my credit report? I will be doing the QWR letter, but what about after they respond to it?

Thank you Paul!
God bless you!
Michelle (more…)

CAN YOU DO A SHORT SALE WITH OUT DAMAGING YOUR CREDIT?  I AM NOT LATE ON MY MORTGAGE AND MY MORTGAGE COMPANY SAYS I CAN DO A SHORT SALE AND IT WILL NOT BE REPORTED NEGATIVELY ON MY CREDIT IS THIS TRUE?

TERESA (more…)

Hello Paul.

I have a question about the impact bankrupcy has on credit scores. I had filed chapter 7 in 2007 with a discharge in 2008. I went today for an auto loan and was told that my credit looked good, no debt, and timely loan payments. He said that he would guess by looking at my credit report I would have high 600 score but instead I have a 558.

I know that it hasnt been that long since I filed but I have paid off 2 loans since then and have one now, with timely payments being made, which is secured. I have known numerous people who have filed bankrupcy and within months they were getting car loans and even buying a house.

When do your scores go up? Why does it seem that mine is so low while others must be higher, given the same circumstances. I just dont understand. Will anyone help me rebuild my credit or will I just have to wait it out?

Thanks.
Marisa (more…)