I've had to take some time off the credit repair train, and now I'm ready to get back on and hopefully move to first class!!!!! Because of a job transfer, we have had to move 3 states away. It was real heck getting a new mortgage, but we did it. Our current situation: *We sold our house in our old state through a land contract, so we still have a 7.5% mortgage there *We now have an 8.875% (Yuck!!!) mortgage in our new state (I wasn't working when we moved here, so we had to use just my hubby's income) *Our scores are in the 550 range *I'm now working (combined income is $120K) Some of our problems: *2 paid charge offs *we have a couple of negative TL's that were removed but are now showing again My questions are: Can we use our change of address to another state to our advantage somehow? Should we have all addresses removed before we do anything else? Will we be able to get our last address removed even though we're still technically carrying a mortgage there? Is showing 2 mortgages good or bad? Should we try to get the one that's being paid by land contract off our reports even though it's showing as a positive TL? I don't want to look like we're carrying too much debt. Thanks! debtchoked
I'll give you my opinion. Even though having 2 mortgages shows a lot of debt, I feel 2 positive tradelines are worth it. Keep in mind that real estate debt is more impressive than credit card debt. I would add the extra income form the contract on any applications to help offset the ratios. A lot of people here have had success with moving the address to get negs deleted. Others said it didn't work. It might depend on how many tradelines are being reported to the old address. As far as the paid charge offs and other negs I would go through the dispute process. If that doesn't work sue them.
i will try to answer some questions...basic answers! they follow ur questions, preceded with a -- Can we use our change of address to another state to our advantage somehow? --usually not as far as a credit report goes, but u can try to get it updated but the old one is usually there somewhere, either active on the CR or in it's history. normally what works best is a name change that will not match. most times the creditors match SSN's, not names or addresses and if it does not match it's to ur advantage. Should we have all addresses removed before we do anything else? --see above answer Will we be able to get our last address removed even though we're still technically carrying a mortgage there? --yes possibly but a mortgage usually has no bearing on whether or not a CRA removes an address or not Is showing 2 mortgages good or bad? --good as long as they are current, however both will add to your debt to income ratio limiting u to obtaining other loans and/or the amount of the new loan(s) Should we try to get the one that's being paid by land contract off our reports even though it's showing as a positive TL? --u will more than likely NOT get a positive TL removed that is still an open account showing a balance. u can try to contest it as being paid or something but the CR will more than likely verify it as valid and leave it. the only other way to get it removed is "accidental deletion" by the CRA, but that rarely happens when u want it to. --just a side note, are u paying this 2nd mortgage on the land contract and then the other party pays u? or are THEY paying it directly to the lender? land contracts are very risky when there is a mortgage involved as u r still liable for it. they always benefit the buyer more than the seller. is there a baloon due date for the other party when they will refinance? just my experience in real estate investing...that's all...be carefull I don't want to look like we're carrying too much debt -- see above-- as u will look that way in most situations, depending on your debt to income ratio and the names on the loan/application and for any credit card periodic checks on your CR's (AR-account reviews) they may up u'r apr's because of this) just a note to watch out for hope this helps
