Posted on: 27th Jan, 2012 11:13 am
I am almost 2 years out from a foreclosure and have been working hard to get back into a position to purchase a home again.
At this point I have paid off or settled every debt, except two. We have a $14,000 balance on one credit card and a $22,000 2nd mortgage that was left after the foreclosure. The 2nd mortgage is showing on my credit report as a "Charge Off" right now (despite the fact that I never stopped paying them until they closed the account and charged it off!) and I have no clue who holds the loan at the moment. I thought they had sold it to a collection agency but there are no signs of any collections on my credit report.
I realize I cannot even consider a new mortgage for at least another year so I'm planning to use that year (and perhaps another year or two if I need it) to put myself in the best position I can to purchase a home again.
My question is... what should I prioritize? Is paying down my credit card balance most important? Trying to settle the 2nd mortgage loan (if I can figure out who holds it) or saving for a down payment on a home?
Thanks,
Christine
At this point I have paid off or settled every debt, except two. We have a $14,000 balance on one credit card and a $22,000 2nd mortgage that was left after the foreclosure. The 2nd mortgage is showing on my credit report as a "Charge Off" right now (despite the fact that I never stopped paying them until they closed the account and charged it off!) and I have no clue who holds the loan at the moment. I thought they had sold it to a collection agency but there are no signs of any collections on my credit report.
I realize I cannot even consider a new mortgage for at least another year so I'm planning to use that year (and perhaps another year or two if I need it) to put myself in the best position I can to purchase a home again.
My question is... what should I prioritize? Is paying down my credit card balance most important? Trying to settle the 2nd mortgage loan (if I can figure out who holds it) or saving for a down payment on a home?
Thanks,
Christine
hi christine,
what type of bankruptcy did you file? if you had filed chapter 7 bankruptcy and got a discharge from it, then you are not personally liable for paying the unsecured debts any more. the credit card debt must have been discharged in your bankruptcy filing. moreover, if you haven't reaffirmed the debt, you won't be liable for paying the second mortgage as well.
thanks
what type of bankruptcy did you file? if you had filed chapter 7 bankruptcy and got a discharge from it, then you are not personally liable for paying the unsecured debts any more. the credit card debt must have been discharged in your bankruptcy filing. moreover, if you haven't reaffirmed the debt, you won't be liable for paying the second mortgage as well.
thanks
i think you should first consider your credit card payment it will raise your score, as thirty-five percent of your credit score is your payment history. although after foreclosure its very difficult to qualify for 2nd mortgage for consecutive three years, so use this time to make good credit history!
regards!
regards!
this was a foreclosure, not a bankruptcy so i am still liable for my debts.
my concern is, with the charged off 2nd mortgage (home equity loan) still sitting on my credit report, nobody will want to give me a mortgage when it comes time, regardless of the state of my credit.
i have already risen my credit score by 100pts since the foreclosure but i'd like to get it up another 60 at least.
i guess the real answer is... i need to do both. get the credit card down to 30% or less of my limit and try to settle the 2nd mortgage.
if only i could figure out how to manage that in less than 3 years time ;) my family of 6 is ready to get out of an apartment and back into a house again!
my concern is, with the charged off 2nd mortgage (home equity loan) still sitting on my credit report, nobody will want to give me a mortgage when it comes time, regardless of the state of my credit.
i have already risen my credit score by 100pts since the foreclosure but i'd like to get it up another 60 at least.
i guess the real answer is... i need to do both. get the credit card down to 30% or less of my limit and try to settle the 2nd mortgage.
if only i could figure out how to manage that in less than 3 years time ;) my family of 6 is ready to get out of an apartment and back into a house again!
Do you have any clue how to find out who holds the collection account? As I mentioned, it does not show up on any of my 3 credit reports. Would the original loan holder (Bank of America) know this information?
Thanks,
Christine
Thanks,
Christine
Hi christine!
Welcome to forums!
Well, it is your lender who will be able to let you know who holds your collection account. You can normally check out your credit report to find out the name of the collection agency. However, as you're not finding their name in the credit report, I guess the collection agency has not reported the account to the credit bureaus.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Well, it is your lender who will be able to let you know who holds your collection account. You can normally check out your credit report to find out the name of the collection agency. However, as you're not finding their name in the credit report, I guess the collection agency has not reported the account to the credit bureaus.
Feel free to ask if you've further queries.
Sussane
Thank you.
Hopefully Bank of America has the info I'm looking for :)
-Christine-
Hopefully Bank of America has the info I'm looking for :)
-Christine-
Good information provided by you related to mortgage brokers but they can only help you in getting loans against properties if the person have good credit score history and have the resources to pay the loan installments regularly..!!
I was wondering how you made out with that issue? Im having the same problem, only I settled my 2nd mortgage charge off, recieved documentation, and now my loan is still being scrutinized 3 months later. They sent the file to HUD, to see if there are any issues. Now I wait...and wait.
Hi jmcgarty!
Welcome to forums!
It will be better if you could be in constant touch with your lender and try to speed up the process. This might help you sort out the matter faster.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It will be better if you could be in constant touch with your lender and try to speed up the process. This might help you sort out the matter faster.
Feel free to ask if you've further queries.
Sussane
I am in touch with my LO every day, and every day I've been getting the same answer. Thus my reason for coming here and asking advice and experience.
As of 748 Pm last night, we made it out of Underwriting. FHA /HUD sent their approval to my LO yesterday Morning. What a battle. TY for the advice.
Hang in there everyone. Its worth it.
Hang in there everyone. Its worth it.
Great to know that!! Congratulations :)
If you are going to apply for mortgage after a foreclosure, there are two things that will be considered in your case. One is the date when your foreclosure will end and another is your credit score. You should consider your credit card payment to raise your credit score.