IS IT POSSIBLE TO IMPROVE MY CREDIT SCORE WITHOUT HAVING TO PAY BACK MONEY OWED TO CREDITORS

STEVEN (more…)

I own 3 rental properties which I included in a recent bankruptcy.  The debts were discharged and the lenders received permission to foreclose.  Although I am not liable for the debts, I still own the properties and the lenders have first mortgage liens on them.  There is also a sizable tax lien on them from the IRS. 

It appears that the lenders are content to sit on the liens and the community still requires me, the owner, to upkeep the properties, which is as it should be. I doubt these properties would sell at sheriff’s sale due to the large tax lien which would still be in place even if the 1st mortgages were paid .  The mortgages are for much more than the appraisal values due to the bubble bursting. 

All the properties have PMI on them.  I would think the lenders would simply walk away, release the liens and collect from the PMI company.  Is there any way I can force the lenders to move ahead with whatever action they chose to take?  I have even offered to let them rewrite the loans for a smaller amount and I would still accept the tax liens which I will have to resolve anyway. 

My income is way more than enough to qualify for the mortgages.  I have no other debt due to the discharge.  It seems to me that this would be a good answer for me and the lenders.  They would cut their losses and I would get my properties back at lower principals.  I don’t understand their failure to accept this deal when they are looking at a loss which is much higher.  Can you suggest any resolution or tell me why they may be reluctant to rewrite the loans?

Mel (more…)

I am estimating I am upside down $30-40k in a 2004 RV with low miles. I have about $30k in CC debt. I own no home. I have good credit and have never been late on rv payment.

Will they consider a short sale if I have a bit of a nest egg in my SEP account? It is my only retirment.

Jen (more…)

Hi Paul,

We sold our house in Arizona as a short sale.  We had a second mortgage on the property. We paid the back interest on the second and started making the mortgage payments.  Due to a 30% reduction in pay we could not keep up the second mortgage payments. 

We asked the bamk if they would re-negotiate our payments.  However, they weren’t willing to do this.  We didn’t make a payment on the loan the past two months. 

I just logged into my account and went to make a payment and it stated a zero balance and that the loan had been charged off.  I’m not sure what to do now? I could make half the loan payment for 3 years then start making the full payment since I will have other debt paid off by then.

Not sure why they would charge it off instead of lowering my payment for the short term. Should I contact the bank?  I haven’t received anything in the mail regarding the loan charge off.

Annemarie (more…)

This is a RV. The bank told us to short sale it. We sell it for less and we get a 1099 from them to report on our taxes. Is this correct?

My husband lost his job and we no longer can afford the payments. The bank will not lower the interest rate.

So it is either give it back or short sale!!

Tenna (more…)

Paul,

First off, many thanks to you for providing great insight and information on your blog!!

By following your “words of wisdom” I am in process of completing an approved short sale in which the lender has agreed to allow a full release of liability, a trade line entry of “Settled” (with no further language), and a zero balance.

My question is regarding the “Charge Off” listed (in their letter below). Does the “Charge Off” solely mean they will be writing off the loss in regards to tax filing? Or does it have other ramifications?

Do you have an idea of how this overall scenario (including the charge off) will affect credit and how long will it remain there?

Thanks again for being a “guiding light” for many of us!

Bob L.
Las Vegas

Copy of letter from lender follows:
Yes, we are agreeable to report “Settled” to the credit repositories without further language.  However, due to the large loss the Credit Union will be taking, due to our agreement with you not to pursue any deficiency balance, we will need to charge off the remaining balance on your Home Equity Line of Credit after the settlement.  When that transaction occurs, “Charge Off” will show on the Credit Report, although the amount due will show as “$0.00” as we will not be pursuing any recovery. (more…)

I had hired a company in March Paid them $1500.00 to get a loan modification. Then in June they went out of business. This guy said he would take our loan with him to another firm.

So another attorney filed the papers with Bank of America for the loan modifiction. Basically that was all he did. He told us we could check with Bank of America ourselves. So far there has been nothing.

We went to see a bankruptcy attorney and he said that we need to get this loan modified.

I talked to my Father and he asked me to find out if it was possible if the Bank would settle the loan for 50% of what is owed. Will they do this?

Thanks for any and all help.

Noelle (more…)

Hello my name is Taylor. I am 31 yrs old and live in Nashville TN.

My question is 2 1/2 yrs ago my jeep Cherokee was reposessed because I was in jail for a few months. My original loan was through wells Fargo and has been sold to arrow acceptance. I am wanting to by a house now and my fico median is around 680. 

The loan has been turned over to a law firm who says nothing will be reported on my credit until it is paid in full. They threatned to sue me but I am a merchant mariner and it is impossible to place a garnishment or attatchment against my wages according to u.s.c. 46 part 11109. I told them this about a year ago and they have not responded back.

My real question is should I use a dept settlement company to pay them off or should I just say screw them. My credit has already taken the hit for the repo but I don’t know if a settlement would further hurt my score.

The owed balance is $10500 they said they would settle with me for $8500. I think this is hi being that they in no way can garnish my wages what amount should I be looking g to settle at? 

Thanks for any help or advice.

Taylor the towboater (more…)

The Declaration of Independence was the document that announced to the world the American colonies status as free and independent states.  It was adopted in Congress on July 4, 1776.  The final sentence reads: “And for the support of this declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor”.

(pause)

I want the best for everyone everywhere and this article won’t travel down a political road, other than to make a comment that we, as a people, have become complacent.  I’m reminded of these words: “But many [that are] first shall be last; and the last first”.  I’ll now turn this article’s steering wheel into the Personal Finance Path.  Woah!  Look out!  It’s a rocky road and for some there’s a roadblock up ahead.  Fortunately, with a little maneuvering, the roadblock can be avoided altogether.  And don’t ask me about the cliff – we’ll get to that later.

The Broken Credit Blog is thankful for the many positive responses from readers who’ve shared true to life experiences of how they’ve triumphed over adversity.  It’s the goal of this site to be a positive voice in the marketplace sharing free information to anyone desiring credit score improvement.  This month marks our forty-second-month on the internet and we’ve recorded over two million hits in one month.  We are at the same time, amazed and thankful – it keeps us writing and working for you.

In my view, personal finances are similar to personal fitness.  I regularly see people working out at the gym with a personal trainer.  The same trainer may be working out with one person on one day and another on another day.  Regardless of that person’s fitness level, the trainer’s goal is to improve that individual at that time.  It doesn’t matter how out-of-shape or how Olympic-world-champion someone might be – the trainer’s goal is to assist that person with improvement.  Such is the same as the Broken Credit Blog’s role.

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So, wherever you are, and whatever your station in life, this trainer wants to see improvement in you.  I hope everyone enjoys their 4th of July and remembers what prompted the celebration in the first place.  Now then, after everyone has finished eating hamburgers and hotdogs, it’s time to start working out.

Hey you with the 672 FICO, give me eight more reps!

My house is for a short sale. The first mortgage accepted the offer and is willing to eliminate the debt. However, the second mortgage indicated that will be a balance of 53k which I am responsible. I have a court order where shows my ex-husband is responsible of the 60% of any outstanding debts regarding this short sale. How can I repair my credit?

Nurys (more…)