Investment Property Gone Bad

Anonymous · ‎07-06-2008

Greetings All:

I need help in the worst way.

2 years ago my scores were 700/743/650. I purchased investment property and the tenant stopped paying. I own my own home and could not make the payments on the investment property. I have almost 10 lates on the investment property and I'm doing a short sale. Needless to say my scores have dropped. This investment property is the "ONLY" lates that I have on my credit report.

During that time I sold my house to my sister to get out of an ARM that was increasing like crazy. In December 2008 I need to buy my house back. I have 2 credit cards, my combined balances due now are $5100 and my combined Credit Limits are $12,000. If I get these down to $0 can I uqualify for an FHA Loan? What advice can you guys give me on how to increase my scores (other than paying my bills on time?) Thank you

Anonymous · ‎07-06-2008

Paying down on CCs are always good.....when going for a mortgage they take D/R which would mean all loan amounts being paid.

I do not know enough about mortgages so I am moving you to the mortgage thread......I think that you will get help from people that know much more then I do.

Anonymous · ‎07-06-2008

Thank you for your rapid response to my posts. I appreciate it very much.

DallasLoanGuy · ‎07-06-2008

B4TheDawn wrote:
Greetings All:

I need help in the worst way.
2 years ago my scores were 700/743/650. I purchased investment property and the tenant stopped paying. I own my own home and could not make the payments on the investment property. I have almost 10 lates on the investment property and I'm doing a short sale. Needless to say my scores have dropped. This investment property is the "ONLY" lates that I have on my credit report.
During that time I sold my house to my sister to get out of an ARM that was increasing like crazy. In December 2008 I need to buy my house back. I have 2 credit cards, my combined balances due now are $5100 and my combined Credit Limits are $12,000. If I get these down to $0 can I uqualify for an FHA Loan? What advice can you guys give me on how to increase my scores (other than paying my bills on time?) Thank you

the foreclosure will prevent you from purchasing in december.

Retired Lender