Home loan question....!

Discussion in 'Credit Talk' started by kodiak911, Jul 19, 2015.

  1. kodiak911

    kodiak911 New Member

    So my wife and I are in a bit of a dilemma. Here's the deal. We had about 8500 of cc debt that we had to let go to collections. A little background, I worked in the oil industry until about 6 months ago and two years prior, the company i worked for forced me to transfer to a different state and take a pay cut. Within those two years, I barely worked 40 hours a week and we struggled to pay minimum payments on the cards and just couldn't do it anymore. I now work for the railroad and my checks a much better. We have two car payments that have never been late and before the last 10 months, had a solid cc history also. We recently came into a little bit of cash and I would like to clear everything up. We are wanting to buy a house in the near future and are wondering was the best recourse to fixing this and what our chances of getting a house loan is. My credit score is around 580 and hers is around 550. Do we try to settle with the cc companies or what do you all think would be best? We would be interested in talking with a realtor that has experience in this arena also. Thanks in advance for all the help!
     
  2. xdarata

    xdarata New Member

    I have not had the experience to solve a big problem as you are experiencing now. If I like you, I want to improve credit score before stepping into a new loan.

    High credit score is very important to ease the way toward a better loan with a low interest rate and a large amount.

    If it is possible, I will raise up good credit score. If we already have a high credit score, look for loans for house purchase will be easy with mild interest.

    Low credit score makes our money drained to pay interest. Moreover, if we can not pay the monthly bills on time. Our monthly bill will be bigger and heavier. Thank you.
     
  3. Fl2BoysMom

    Fl2BoysMom Well-Known Member

    Kodiak,
    That jibberish above notwithstanding, you're going to have a very hard time getting a mortgage with those credit scores. I'm not at all qualified to tell you how to go about repairing your credit, except to say that Step 1 is to get a copy of all 3 of your credit reports, see what's on them, and then read this forum, A LOT, and then from what you think you've learned, come up with a 'plan,' and then ask in these same forums what people think of the plan. Mindcrime and jam are most helpful individuals, though I haven't seen them around lately.

    All that said, there are other ways to buy a house that don't involve dealing with getting a mortgage at all, and you'll find those 'creative finance options' the real estate investing forums. Or you could PM me and I could give you some advice.
     
  4. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Hey Kodiak- I'm curious if you ever made any progress on clearing up your credit reports, negotiating payments on the $8,500 in credit card debt, and preparing to apply for a home loan? I'd love to hear some more about your experience and help in any way I can if you still have questions. Anyway, I look forward to hearing from you soon.
     

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