07-11-2012 01:34 PM
History: Chapter 13 in 2005. Had dropped off of Experian and Transunion but for some reason the discharge date is 2007 in Equifax (just found out today) so it still shows up there.
I do have one collection left from 2008 that I do admit is mine and I should take care of but still leaves me very upset..... $1300 to an old apartment that I had a ton of issues with and broke the lease. (I'm prepared to pay this at closing if I need to with a mean look on my face)
Anway, I figured I was solid for a mortgage my average Fico is 705. I called Quicken Loans today and they told me they couldn't even prequal me because I had a collection after my last derog (the chap 13 on Equifax only)
The BK was in 2005 and the last collection was in 2008 (again I'm prepared to pay this if necessary). Is this common? I've literally started looking with an agent and everything I did not think this was going to be difficult at all! He said in order to prequal me the collection would have to be removed or paid in full since the BK still showed on my report. But if the BK didn't show up I could be qualified.
I have a call into suntrust as well but am I wasting my time here? I'm looking to buy a 180,000 home with 25% down $65k/yr in income. I've been saving for a long time for this.
Thank you for help all. I used to post on the rebuilding forumns all the time and forgot my login so this is a new account Love this website
07-11-2012 07:07 PM
First of all, I'm not familiar with BK rules, but I would highly consider a PFD for that appartmet collection. The 25% down won't drop below 20%, and you'll remove a huge burden on your reports.
But I'd also snoop around the BK forum for more advice first.
07-11-2012 07:16 PM
I actually did try a PFD twice on the old apartment. Sent them an offer certified mail return receipt requested and never so much as a rejected letter or call back. They've also NEVER even called me to collect on it in 4 years! The last offer I made them was to pay 75% of it...they apparently are just retarded...no offense people that are retarded to no fault of their own... The CA is National Credit Systems.
What do you mean "The 25% down won't drop below 20%, and you'll remove a huge burden on your reports."
07-11-2012 07:23 PM - edited 07-11-2012 07:25 PM
If your down payment is 20%+, you typically avoid PMI, which can save you some good coin. If it's realistic to hit 20% down, it's worth doing it, and paying that collection would still let you do that.
EDIT: But, if they're not PFD friendly, then your options are basically pay it and have better experience with qualification, or don't pay it and keep dealing with the hassle you've gotten so far. Neither one is fun, unfortunately.
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