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01-13-2013 01:26 PM
I've posted before since joining myFico several months ago. I appreciate all the help. In a nutshell, I was injured at work as a firefighter and medically retired. My medical bills had mounted up since workers comp did not get involved (my bad. #1). My income also went down. So, I ended up with 23 collections (medical) 3 tax liens (State not Federal) and one Judgment on a furnture loan. When I received my back pay, I paid EVERYTHING.....$35K dollars worth of bills. Then I joined myFico. I was excited to see myFico report my score go up to 603 from it'sprior 525 -most likely because I did what y'all told me to. I got two secured credit cards and I got a car loan that has all on time payments for one year now. Most recently, I sent Good Will letters to all of my collection accounts - which were mostly from 2 collectors for the same hospital. I even paid off my charged-off Capital One card and sent them a Good Will letter. Like most, I am trying to find a home while the prices are still low and need to as soon as possible as I can not use stairs very well anymore and have more surgeries in my future. I spoke with a lender friend of mine and agreed to let him pull my credit yesterday. I am sick to my stomach. TransUnion shows 593; Experian shows 562 and Equifax shows 524. The law firm that took payment on my judgment in December still has not filed the satisfaction of judgment but all the tax liens show satisfied and paid in full. I FEEL SO HELPLESS!!!! When will I see change for the better? How many points will I get each month for my bills being on time: How many points will I get if a Good Will letter works? How many years do I have to suffer for having been injured and STILL paying all my debts. Seems unfair that instead of waiting for them to drop off, that I still get penalized as though I did. I even have a $2200 line of credit for my home business through Kabbage that does not report to the credit bureaus. I don't know what else to do. I am hoping that blowing some steam here and getting some replies my bring me out of my funk.......HELP????
01-14-2013 12:57 AM
I know it doesn't seem like you're making progress, but paying off all that debt is a wonderful thing. You will need to keep paying everything on time. Keep working the GWs, sometimes it takes a few to get them to delete, don't give up, they can say no 100 times, but it only takes one yes.
01-14-2013 03:06 AM
First, I'm so sorry you are feeling this way. It is certainly a roller coaster, this FICO adventure.
It will get better. I know that is hard to believe when you are in the midst of it, but it will. GW, GW, GW, and never give up, never surrender! It is true, you only need ONE "yes" As far as the medical collections, I would Google "hipaa collections" or something along those lines and find a method that has been very effective for some folks, me included. I think I started with 14 medical collections and now have none. For the taxes, as long as they are paid, see if you can write a letter asking that they be removed. Whenever you write letters, make sure you tell your story, but not too over-the-top. Yes, this happened to me and I'm trying to make it right, please find compassion to help me out.
Big keys are never be late again, try to get the baddies off, keep UTIL low.
Do you have any CCs right now? If not, see if you can bump your score up and start out with something like a Cap1. A lot of folks snub them, but they have been a great rebuilder card for me when my scores were high 500s and I was in a mess.
My situation was quite different (all it took was an ice storm in 2007 to devastate my family's finances) and there are still consequences on my report from that time that I'm STILL GWing with no success. I am starting to see an end in sight and rejoice in each baby step as a step forward in the process. There will be steps back along the way as well (rebucketing, for instance, or an unexpected expense that hikes UTIL temporarily), but all forward motion counts.
I wish you healing physically, mentally, emotionally, and financially!
01-14-2013 06:34 AM - edited 01-14-2013 06:35 AM
I'm sorry you're going through this, it can get better.
Are you sure the law firm hasn't filed the satisfaction of judgment? It's also possible they filed but the drones the CRAs use haven't picked it up. You could call the law firm and ask for a copy of that satisfaction. After you have it then press them if it hasn't been filed. Since you paid it in full, if they haven't filed the satisfaction you could ask if they would file a motion to vacate instead. If vacated the judgment disappears.
Did you pay the hospitals or the collectors? You might be able to use the "HIPAA Process" to get the collections removed. I don't think we are allowed to post a link but search for "Whychat HIPAA" for the steps. You could also try to get the hospital (who owned the debt and retained the collectors) for help given your circumstances.
If you keep managing the two credit cards by alternating only one showing a balance, and keep utilization under 10% that will give the maximum impact for the open accounts.
Start now with NACA to work on a mortgage. They aren't score driven and if everything can be documented in your story you should be able to get approved by them. They do 30 year fixed loans with no down payment and no closing costs, at better than competitive rates and with no PMI.
01-14-2013 09:09 AM
Thank you for your help and kind words. How long should I wait between sending a second and possibly third GW letter? Also, I am searching, but have not yet found what NACA is? Again, thank you for taking time to let me vent. It's comforting to know that others are out there going through this difficult journey.
01-14-2013 09:40 AM - edited 01-14-2013 09:40 AM
I would wait about 2 weeks after I receive my response. Try sending it to a different department or different name. You might get someone nice one day that will help you. Hang in there!
01-14-2013 09:46 AM
NACA is the Neighborhood Assistance Corporation of America. They provide mortgage counseling and lending, arwe also an activist organization against predatory lending and foreclosure practices.
I don't think I'm allowed to post the link here but you shoudl be able to find them.
01-14-2013 09:53 AM
NACA is slow and disorganized, they also put a priority on helping people save their homes throuygh mortgage modifications. But their mortgage offering is unbeatable. They don't consider scores but are focused on your ability to afford your home.
There are no income limits and VA or other benefits aren't disqualifying. If you qualify for other grant type aid you may be able to use it. They will count permanent disability income in qualifying you. I don't know the specifics on a VA loan but suspect NACA will do better. You cannot own other real estate, if you do it will have to be sold beforte you can close on a NACA financed home.
I started by attending their workshop in November 2009. I had to wait two years from my BK discharge in that month, which was 11/2011, I did all the prep work while waiting out the two years, became qualified (their term for a preapproval) in January 2012, and closed on a new home in April 2012.