I know we have been going over this for awhile now, but when I pulled my report today and just found my score at 510 ( I didn't think it would be that low) for equifax I was kind of stunned, my 2 cards are maxed out and I closed them thinking we were entering into a CCCS program when we didn't we just let them stay closed, now we have about $16K in debt combined with my spouse that is with the notorious late fees and over limit fees we have encountered fo rnot paying the past 2 months. Now if we try and do a short sale on the home we have the option still we just need to tell the MTG company that could be a way we will not owe VA, and if we can not sell it then we just foreclose on it anyway. But if we do then we may have our VA elgibility back. But then if we do not file we could have our taxes to help pay the high interest loans off we should get maybe 3-4K back that is what we got the year before and now we bought a house this year (didn't pay any closing costs) so that is more tax breaks. Will 6 month period of lates and a foreclosure be less of a hit on our report then a BK? But if we sell the house then minus the foreclosure? Help I need some advice. We would file a 7 and surrender the home, but i think you knew that already. But I also heard you can start rebuilding 6 mo. after a 7 so why waist my 16K? Any advice would be helpful. Really all I need to know is about the difference it would be and how it would effect our credit. Thanks sorry so long...
to be honest - your screwed credit wise either way. the last thing you should even be worried about is rebuilding your credit. you have to do what is best for you - not which way is going to get you back into credit and debt faster. i don't mean to sound like a b*tch, but the banker in me goes nuts when i hear this. (BTW, i filed Ch7 5 years ago, so yes, i have been there) i truly think you have bigger issues to deal with than a credit score.
The only reason why I am concerned about my score not that I need anymore credit but I need to be ready to buy a home in about 4 years when we are done with the military. I can't get a mtg loan with a 510 score...don't get me wrong I knew we screwed up everyone has in their life, but to tell me I have other things to be worried about right now, I would hope you have read my threads before saying anything like this. If you have then I would really like to know where you are coming from. I am just trying to do what is right for my family and their future.
Re: Re: Should I really file? you posted looking for advice and i'm giving you advice - from someone who does mortgage loans, and auto loans, and credit cards etc. you have to do what is right for you RIGHT NOW - not 4 years down the road, and not what will help your score the most so you can get a mortgage. THAT comes later. right now, you need to figure out what is best for your family NOW. if a mortgage 4 years down the road is that important, take on as many jobs as it takes to pay your bills on time and NOT lose your house. my advice on what type of loan i would consider - ch7, reaffirm house and a nice big savings account; not a 3 digit code a person can manipulate in their favor. i never said a person can't make mistakes, but trust me when i say a score isn't what should matter right now.
Re: Re: Should I really file? I didn't mean to sound snippy but we want out of the house we don't want to keep it that is why we are surrendering it, we would not be able to save any kind of money in the home why not use the benefits we have of being in the military they are giving us a home for free...ya know what I mean....I am filing and I know it is the right decision....I am just scared like most people who even have to consider it. Maybe we would have made it by if I wouldn't have had lost my job and had such a hard time finding a new one because I am a military spouse, for as much as this town depends on them, and the base employs civilians they sure are not military friendly. That is really besides the point, but I know in a couple of years we will be able to qualify for a FHA/Conventional loan at prime rates because we will be straight and smart with our money! Four years seems like a lot of time away but it will go by so fast! I am and have always been a planner and now that I have the means to start over we are going to do that. On a lighter note Creditnet has given me the greatest advice along with chat-cards about my decision and I now know it will be fine.
Re: Re: Should I really file? one more thing - and a huge mistake i see people make - is keep all papers in regards to your bankruptcy (and if you decide not to reaffirm the house). i know it sounds simple, but over four years it would be easy to lose them. you never know where life will take you in four years so don't worry about it! i see a lot of people get obsessive about fixing their credit. fix the errors, leave the rest (lenders really don't care if it says included in ch7), accrue a good pay history going forward, and build a huge savings account. the rest will fall into place. good luck!
