Help with getting approved for a mortgage loan

[Anonymous]

I am trying to get pre-approved for a mortgage loan my credit scores are as follows:

Transunion: 619

Equifax: 612

Experian: 590 (fako)

Take home pay $36K a year

Bancrup discharged: 2004

2Tax liens: Paid in full in 2007

Car pymt balance: $2400

Orchard crdit card balance $183

Deferred stuent loans: $4K

The mortgage broker I am working with says I have to get some items off my credit in order to qualify:

Reposession reporting as $7504 (reposessed in 2004, was removed from Exp and Eq, Trans showing balance, when the balance should be $0 since it was a charge off) currently disputing DOFD 4/2004

Aspen Card (charged-off) balance: $696 been making payments on-time since Jan 09 (lates August-Dec2008)

Salute card (charged off) balance: $374 been making payments on-time since Jan 09 (lates August-Dec 2008)

Credit Solutions CA (charge off): $562 (was opened after my purse was stolen out of my car have sent company copies of police report, will not budge)

Arrow Financial CA (charge off): $288 (refuse to send me any information on this account)

First Bank of Delaware (charge off to Credit Solutions) balance: $0

Plains Commerce Bank (charge off to Arrow Financial) balance: $0 also sent them copies of police report will not budge.

First Premier Bank (paid less thru settlement) balance $0 since

Is there a way I can still qualify now? Should I just pay my credit cards off, and PFD the two collection accounts, so I can qualify? Couldn't I just write letters of explainations for these items?

I am at my whits end and I dont know what to do.

Message Edited by Barnantoin on 08-13-2009 11:43 AM

[ShanetheMortgageMan]

First you should really work on getting your middle (qualifying) score up to a 620 level - you aren't too far away either, and if you keep utilization low, after a couple more months of on time payments, it's likely you'll be there.  620 is the minimum required credit score that most lenders are looking for, but it doesn't guarantee approval just by having that score.

However you are also going to have to clean up your credit quite a bit.  As you know a bankruptcy is a pretty big negative mark on your credit, and mortgage companies also see it that way.  What is even a bigger negative mark on credit is having late payments, charge-offs, collections, etc. after the BK.  Lenders see that as someone falling back into their old ways, whether or not the bankruptcy was due to an extenuating circumtance or not.  The fact that your negative history after the BK is pretty recent (4 years after the BK, but within the past year) could very well make an underwriter hesistant on approving you, and might even be declined.  Underwriting is getting extremely tight right now, lenders are creating overlay guidelines on top of FHA & conventional loans and are sticking to them with no exceptions.  FHA just says clean credit for 12 months is all that is needed, but for someone who has outstanding charge-offs & collections after a BK, even if they were over 12 months ago, I could very well see not getting a loan today.  The best plan of attack for you IMO would be to concentrate getting your score as high as possible (well over the 620 mark, just keep going and don't stop), try to negotiate PFD's on the collection & charge-off accounts, and after those are taken care of re-evaluate your situation here at that point.