I'm new to this so please bear with me, I owned a home last in 2007 with my wife, she purchased in her name only in 2009 I was unemployed at the time, she got laid off in 2010 our credit scores fell drastically. I have worked a part time job for 2 years and just recently got a new job (same field) and still working pt. The distance to our jobs is over 100 miles 1 way so we would like to purchase closer to work. My questions are as follows: I have pulled only one score with TU which is 515 I have a recent collection which has "last reported 07/2012, a cap 1 charge off "date of status" 7/2009 "last reported"9/2012, comcast last report 2009, and a hud title loan repayment plan current but owe 6,000. sl showing paid or paying as agreed. So, do I pay the charge off since it's constantly updating, do I leave the collections from 2009 alone? I am hoping to purchase in my name only because she has had late payments on her mortgage. My dti wouldn't be a problem because other than these items I don't have any other debt. (sl pymnts less than 100 a month) Is it even possible to get a mortgage while still owing a govt debt? (payment agreement current) I am planning to go to a furniture store or apply for a secured cc in order to establish credit. Is this the best way to bring up my scores. I know it's going to take a while but owning my own home again will be worth the wait.
+1 You need some recover time and work on your CR before you will be ready. Good luck though!
I would make sure your government debt stays current, keep working on your credit. You may need to establish new credit at this point to get some positive trade lines showing. I'm talking a small unsecured card or secured card to rebuild. I've seen much worse than you, so with a little time you will make it to be qualified again. Yes the key is to get to 620 and even better 640 would be ideal at this point. YOU can make it, you just need to start taking action now.