Foreclosure fiasco, purchasing from builder

[Hamms5]

This is a long story, but will try to make it short. We did a bond for title from a builder in Feb. We were served papers from a lawyer saying they are foreclosing on 17 of his properties. Ours is one if those. As of now, we will be paying a property management company assigned by the court.

We have received a prequal letter from our lender saying we have qualified to purchase through a refi since we already live in the home and have paid 6 payments plus the downpayment. All of course has been done with checks.

Called the lawyers office and we don't know the status if our house in the process. They are still trying to "find" our builder and serve him.

All this to say...my hubby has a score of 615, mine 625. Have an underwriter that says hubby gets to 620, we should be okay. Any recommendations on where to go from here? We so have medical bills to pay...found out we can call and offer $ to pay and delete. We have been paying a steady $50 month for years and I am so furious as we have friends who have settled for a tenth if what they owed. We thought we were doing the "right thing"! Help...

[Genkeim]

Usually if you settle a debt for less than what is owed they will not delete it. If you have the money to pay off the debt in full, call the creditor and offer to pay in full in exchange for deleting it from your credit reports. I was able to do this with several of my collection accounts earlier this year and it made a HUGE difference in my scores.

You can find a LOT more excellent information on how to go about this in the credit repairing forum.