Posted on: 02nd Jun, 2008 04:36 pm
Recently, I had an appointment to get pre-approved for a mortgage. Everything was great as far as assets and employment history. I have a previous bankruptcy that discharged a couple years ago.
I made the really bad mistake of breaking my cycle of saying no to those pre-approved credit card offers and totally forgot that I got the account. All bills and statements were going to a different address. I have been on time with everything else and my car is due to be paid off next month with no other revolving debt.
To make a long story short, I was told by my lender that I will either have to get the account deleted on my credit report or continue renting for another year. Is there any way around this? This is actually my second company I've gone to.
The first took my information and never got back to me. It's been over a month so I figured it was a done deal. I was told that some accounts included in my bankruptcy were still showing as charge off on the credit report. I thought my score would increase, it did at some agencies
but not others. It went from 571/590/593 to 571/591/573.
I was thinking 203k because the foreclosure market is great here in Michigan. That would help me to do rehab without the 2nd mortgage. Figured it would be hard to get a conventional mortgage with a bankruptcy. I would still get into more costs and pay points at closing. I was told by the lender that I would more than likely be approved for a $940/mo. mortgage. I would have 20% down, so PMI would not be an issue either.
Any of your input is well appreciated.
P.S. I have tried contacting both the original creditor and collection firm about this account but they will not budge.
It's frustrating that this one account is holding me up! Will it make a difference if I pay in full or the damage is already done? This is a Fashion Bug Credit Card. This account was transferred to a law firm to collect the money. Previously, they offered 70% settlement, but their terms on my credit report would have been Paid and Settled. That does me no good! They would not agree to a Pay for Delete or to remove the negative denotations on my credit report.
The law firm was supposedly hired to collect the money. When I ask about the notation on my credit report they say I'd have to contact Fashion Bug because they have no control. I call Fashion Bug and they tell me to contact the law firm since it's out of their hands. I have offered Pay for Delete to both with no avail. Someone else suggested I try a Goodwill Letter to a company executive.
I don't think the mortgage agent actually submitted my application. Another problem was that a lot of my accounts included in my bankruptcy were still showing as current/charge off and not "included in bankruptcy" on my credit report. This was supposedly corrected with Rapid ReScore, but I have since pulled all of my reports and these accounts are still not corrected. I was told that I would qualify for a $940/month mortgage, if I can get this situation handled.
Thanks for your help,
Michelle
I made the really bad mistake of breaking my cycle of saying no to those pre-approved credit card offers and totally forgot that I got the account. All bills and statements were going to a different address. I have been on time with everything else and my car is due to be paid off next month with no other revolving debt.
To make a long story short, I was told by my lender that I will either have to get the account deleted on my credit report or continue renting for another year. Is there any way around this? This is actually my second company I've gone to.
The first took my information and never got back to me. It's been over a month so I figured it was a done deal. I was told that some accounts included in my bankruptcy were still showing as charge off on the credit report. I thought my score would increase, it did at some agencies
but not others. It went from 571/590/593 to 571/591/573.
I was thinking 203k because the foreclosure market is great here in Michigan. That would help me to do rehab without the 2nd mortgage. Figured it would be hard to get a conventional mortgage with a bankruptcy. I would still get into more costs and pay points at closing. I was told by the lender that I would more than likely be approved for a $940/mo. mortgage. I would have 20% down, so PMI would not be an issue either.
Any of your input is well appreciated.
P.S. I have tried contacting both the original creditor and collection firm about this account but they will not budge.
It's frustrating that this one account is holding me up! Will it make a difference if I pay in full or the damage is already done? This is a Fashion Bug Credit Card. This account was transferred to a law firm to collect the money. Previously, they offered 70% settlement, but their terms on my credit report would have been Paid and Settled. That does me no good! They would not agree to a Pay for Delete or to remove the negative denotations on my credit report.
The law firm was supposedly hired to collect the money. When I ask about the notation on my credit report they say I'd have to contact Fashion Bug because they have no control. I call Fashion Bug and they tell me to contact the law firm since it's out of their hands. I have offered Pay for Delete to both with no avail. Someone else suggested I try a Goodwill Letter to a company executive.
I don't think the mortgage agent actually submitted my application. Another problem was that a lot of my accounts included in my bankruptcy were still showing as current/charge off and not "included in bankruptcy" on my credit report. This was supposedly corrected with Rapid ReScore, but I have since pulled all of my reports and these accounts are still not corrected. I was told that I would qualify for a $940/month mortgage, if I can get this situation handled.
Thanks for your help,
Michelle
Hi Michelle,
you have some very understandable concerns. I wasn't quite sure whether the account you were speaking about was included in the bankruptcy. If it was, you simply need to send a copy of the discharge documents to the agencies reporting the item and ask them to delete it. Lenders are very weary about accounts being delinquent after a bk so keep track of your accounts and try to continue to re-establish your credit.
best o luck
J
you have some very understandable concerns. I wasn't quite sure whether the account you were speaking about was included in the bankruptcy. If it was, you simply need to send a copy of the discharge documents to the agencies reporting the item and ask them to delete it. Lenders are very weary about accounts being delinquent after a bk so keep track of your accounts and try to continue to re-establish your credit.
best o luck
J
Hi Michelle,
Welcome to the forum.
Continue to re-establish your credit is the best suggestion for you. See your credit is not still very good and if you qualify for a loan then rates and terms will not be very favorable for you. So wait at least for a year and improve your credit and then go for a mortgage.
Even if you go for it now then you may again end up increasing your debts. So pay all your debts and other bills on time and try to improve your credit.
Best of luck,
Larry
Welcome to the forum.
Continue to re-establish your credit is the best suggestion for you. See your credit is not still very good and if you qualify for a loan then rates and terms will not be very favorable for you. So wait at least for a year and improve your credit and then go for a mortgage.
Even if you go for it now then you may again end up increasing your debts. So pay all your debts and other bills on time and try to improve your credit.
Best of luck,
Larry
michelle, as you stated, you erred in accepting this credit card; that the card and subsequent bills then went to a different address made things even more difficult.
the credit standard after bankruptcy is that you may not have any slip-ups if you are attempting to receive mortgage approval. unfortunately, your account not only went delinquent - it went to collections.
in order to fix your credit report on those accounts that were in bankruptcy and are still showing up - your best bet is to contact the credit repositories directly and request that they be removed. this effort does work - i have seen it and worked with many borrowers in this situation.
as for the debt you owe on the fashion bug account, they've told you they want payment in full and no settlement. what is it that holds you up from making that payment? why should they remove the negative information from your report? what is being reported is the truth, is it not? settling "does me no good" according to you...so the alternative is to not pay it at all? what benefit is that?
i don't understand this mindset at all. you want to be granted credit, yet you don't want to take responsibility for your debts. if the credit card went to another address, how is it that you were able to use it and create a balance that then went to collection? and, of course, i wonder why it took me so long to ask that question.
the credit standard after bankruptcy is that you may not have any slip-ups if you are attempting to receive mortgage approval. unfortunately, your account not only went delinquent - it went to collections.
in order to fix your credit report on those accounts that were in bankruptcy and are still showing up - your best bet is to contact the credit repositories directly and request that they be removed. this effort does work - i have seen it and worked with many borrowers in this situation.
as for the debt you owe on the fashion bug account, they've told you they want payment in full and no settlement. what is it that holds you up from making that payment? why should they remove the negative information from your report? what is being reported is the truth, is it not? settling "does me no good" according to you...so the alternative is to not pay it at all? what benefit is that?
i don't understand this mindset at all. you want to be granted credit, yet you don't want to take responsibility for your debts. if the credit card went to another address, how is it that you were able to use it and create a balance that then went to collection? and, of course, i wonder why it took me so long to ask that question.
