Need advice RE:CR & home purchase

[Anonymous]

Hello all,

I have an average FICO of 647 and am looking to purchase a home soon.  I only have about $15,000 to put down. My big problem is a few open collections for a substantial amount.  I am trying to settle and pay them off but have not yet recieved a reply. I am desperate because I need a home soon. Thinking about using a service such as DTS to speed it up. Anyone have any experiance or suggestions or even better know of a lender who will qualify my now? Thanks,

Rob 

[Anonymous]

Try for a PFD.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2659

Don't let any lenders pull your credit before you get the TLs deleted. If you go to pay your collections in a PFD, they are likely gonna see that and demand full payment offering no deletion of the TL.

[Anonymous]

Thanks for the quick response.  I actually did send a similar letter but recieved no response, thats why I was thinking of going through a company like DTS.  I don't have a lot of time before I need to get a loan. Although I didn't set a specific timeframe for a response so mabye I'll try again.

[Tuscani]

What is this DTS you are referring to?

[Anonymous]

DTS Financial, a debt settlement company.  I saw a reccomendation for it showing it as one of the few legitimate companies to work with.  Can't remember where but it was a reliable source.  It's the only one I've seen but if there are any others please advise. Thanks.

[Anonymous]

According to the Santa Barbara Better Business Bureau DTS Financial has a  "F"  with a ton of complaints for misrepresentation.  

[Anonymous]

Wow, thanks for letting me know. I'm pretty new to all this. Any reccomendations for a reputable company?

[Tuscani]

http://www.nfcc.org/

NFCC is one of the view endored by the FTC.

[Anonymous]

Even if you go thru an NFCC certified counseling, you credit score will likely tank. I don't recommend it, even as a last resort.

Have you talked to either a banker or mortgage broker? I recommend a broker. More options and likely a better deal when you're in less than ideal credit territory.

There's nothing to stop you from talking with one and finding out what they can do for you and where the thresholds are. You can do soft pulls yourself (thru MyFico, TC, etc.) and take those paper copies of your reports to the banker or broker.

FHA, VA and naca.com are three of the ways one can get a mortgage and they don't look at your score. They look at DTI and want no lates in the past year.

I think an attorney might be a better choice than a debt management company. Trick is finding the right attorney who will negotiate the CRA reporting. myfaircredit.com or naca.net are two good sources to start.

Message Edited by Noah_Bodie on 05-27-2007 10:49 AM