I am hoping some of the experts on this board can answer some questions about my situation. We are hoping to purchase a home in the near future. We filed chapter 7 in January of this year and were discharged in April. We had a forclosure in the process of the BR but only my name was on the mortgage and on the deed, DH was not around when I bought the place. So . . . he has a recent BR but no forclosure. His scores are 605, 575 & 498. Since getting this information and copies of his credit reports, I have paid his credit card balance down to about 18% utilization from over 80% and have disputed a few accounts that said "charge off" instead of "IIB". I'm looking for an idea of how much these things might affect his scores and also if anyone knows what our chances might be of getting financed with our current credit situation. Our debt to income is low (about 10%). We have cash to cover closing but not much for down payment at this point. Would be able to have about 10% by early spring. Thanks in advance for any help.
What are his scores after paying down? You can get a mortgage 1 day out of BK. Best rates are 12 month. 24 months for foreclosure...but, it can be done w/12. If he has the income to support it, I'd only put him on the loan for now due to the foreclosure on you. After close they can add you to title. Refi in 2 years or so and put you on the loan at that time. Has he established any new credit? Depending on score you can get 100% financing.
Loan Queen - Thanks for answering me so quickly! I just paid his balance down yesterday so I'm going to pull his scores again in about 30 days and check, (could it happen sooner than that?) He has an auto loan that we got after we filed but before discharge that is in excellent standing and a credit card that he got post discharge that we have made at least triple the minimum payment each month. Our br will have aged 7 months when our lease is up. Also - I have asked this in another post, but my car loan is showing on his credit report, even though it's not in his name. It doesn't show as a derog, but it was reaffirmed in our br and shows no activity since January 04, which is incorrect, we've been paying each month. I can dispute this and get it off his report, but don't know if it will help or hurt his score. It does inflate his balance, which the myFICO report said was a negative factor on his report. I'm not sure what to do about this one. I could really use some advice on this. Thanks! Any help would be great!
You are welcome! Pay down...from my experience some CC's can report right away...that doesn't mean that all CRA will report on time (TU is ALWAYS late). I just paid down one of my cards to 50% and my scores for 2 bureaus came up about 8 points within 5-7 days. TU still hasn't reported from 3 months ago. So you know it's the CRA, not the OC. If you aren't on privacyguard.com...go there. You can check daily. I recommend this site to all my credit repair clients. Car loan- well, sounds like it's a positive tradeline. Does it show as joint? It probably hasn't reported because of the BK. Does it show any lates? If not, when you go to get your loan the broker/loan officer can ask for an update. There are many comany's that don't update, but I think this is probably due to the BK. Hope this helps. Let me know if I can help further.
If you have a 600 mid score, I can finance 100% for you 1 day out of BK...then refinance after 2 years for a better rate...
