Trying to Buy a House

Discussion in 'Credit Talk' started by heather, Sep 30, 2001.

  1. heather

    heather Well-Known Member

    Okay, have given up on disputes with all the credit bureaus, got some real nasties that won't come off. A couple of thousand in chargeoffs and medical bills.

    Now for my questions, does a paid charge off help any? Will your score be just as bad with a paid one as an unpaid? Is it easier to get them deleted when they are paid?

    I have been keeping track of my scores, but recently took a major hit when my husbands and my scores dropped to in the mid 520's. I need a plan of attack, I will have $6000 in Feb to put down on a house and need the best way to do this. We both just got FNBM (I know, I know, but there are no other options) and a CCB. I know I should not open any new accounts. Please help me to decide the best way to do this, I don't have much time. Thanks.
  2. IncomeHelp

    IncomeHelp Well-Known Member

    When it comes down to it, a paid charge off is better than not paid for a mortgage lender. At least you won't have it hanging over your head and the lender does not see it as a direct threat.

    The last 12 months is looked at hard. Then the previous 12 months. Low to no debt is important. FHA has lower requirements than conventional or Fannie Mae and probably will be your best bet.

    Don't apply for any more credit. Keep disputing since you might have some luck. The more time you can put between your credit problems the better.

    The FNBM will help as it ages. The key with them is pay your bill as soon as you get it. Don't wait as they have ways to make your payment post late. Use their phone system to track your payment.

    Good Luck, keep trying.

  3. heather

    heather Well-Known Member

    thank you income help for answering, I will do my best. Obviously, no one with bad credit on here has ever tried to buy a house, thanks for nothing.
  4. debtfree

    debtfree Member

    I am new to the board but have been reading it for a while. I have had some problems myself but have found that you can get rid of the derogs but you must follow the process below.

    1. If they will settle then you make a contingency that they remove it and print it on the back of the check in pen. You have the right to renegotiate a contract. You must also put in the contingency Void if rights reserved. Here is what I put on the back of my checks.

    Cashing of this check represents payment in full to whome this check wasissued. By cashing this check, Creditor and/or His asshgnee (collection agency, Etc also agree to remove any derogatory credit it has previously reported regarding this account e.g (slow pays, Prl's, judgements, reposessions, collections, etc) from all credit bureaus within 10 days from the cashing of this item. This agreement shall superceede all previous contracts between the parties. Void if rights reserved.

    2. You staple the check to your letter stating the agreement and send it certified. When they cash the check they are legally bound to the agreement and if they dont follow through you then sue them using the methods that have been posted previously.

    I have paid off 35,000 in debt for about half doing this. I have threatened to sue and they fold every time in my experience. A good rule of thumb is "
    He that has the most documentation wins"

    I hope that this helps. Good luck.
  5. tonyd

    tonyd Well-Known Member


    Depends on how old your charge offs and any judgements are and if any accounts are in good to great standing for the last 12-24mos. FHA requires ALL debt be paid or DELETED from reports, even judgements. Try "B Paper" type of mortgage. As long as your unpaid debt or charge-offs are old, like 4 years plus, you need not pay it off because in most states OC cannot attempt a collection on debt past 4 years old. It doesn't mean you don't owe it, just means they cannot attempt to collect on it.. Your broker or realtor should know about B Paper loans. Thea y are slightly higher APR's and notmally split to 2 seperate mortgages (an 80% and 20% or like that) but it'l get you a home and then you refinance in 2-3 years when your reports are clean. For mortgages, if any debt is OLD, you need not have it paid off unless you are going VA or FHA. Been my experience!
  6. tonyd

    tonyd Well-Known Member



    Medical debt is ALMOST NEVER looked at by lenders because we all know how insurance companies can't bill right to save their own throats. Worst case is you'll have to write a letter, a mild sob story to expalin y this and y that....
  7. tryinhard

    tryinhard Well-Known Member


    " {tonyd | 98 posts since Sep 2003 | 09.15.2003 @ 23:34
    Medical debt is ALMOST NEVER looked at by lenders..." }

    This is so not true.....IMC
  8. willtygart

    willtygart Well-Known Member


    You can't put a blanket statement over medical bills.....more often then not they will hurt you and only specific programs which allow "circumstantial" problems in your credit will allow for these.

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