Hi guys
Not sure if this is the right spot in the forums to post this (posting it under mortgage, because that's my goal), but I'm hoping you can help.
Right now I pay $1,000 in rent. I'm looking at houses around the $100,000 range, so that (according to the little calculators on the side of the properties I've looked at so far) the payments will hopefully be around $450 (I know there's insurance and whatnot that will add to that and increase it some). My hope is that I can get out of the rental game (so tired of my current situation-been here 8 years, and it just gets worse), and also lower what I'm paying for housing, and free up some money that I can use for paying on my student loan.
Here's the background on the credit
My credit sucks (don't have my FICO score yet, but the creditkarma estimator put me at 554.),
I have a big student loan (about 38,000) that I've never paid on. And it's been years. I have 4 entries from AES, and they're all under the adverse accounts section, but say they were delinquent, deferred, and closed due to refinance (when I consolidated them into the big Sallie Mae $38,000 loan).
I have a "state tax lien" that is flat wrong. I paid that sucker. I've made a mess of my credit, and own my mistakes, but that's one's not right. I just can't seem to find any proof. So I don't know what to do about that.
I also have a BK from 08. I have 5 things that are showing up but say "included in BK" . Should the individual AES and the items that were "included in BK" even be showing up? Seems a bit like a double whammy, like you're getting hit twice for the same thing....?
I have only one charge card-Lane Bryant. It's over its limit, and according to the TransUnion report I've pulled (the only one so far, haven't pulled other 2 yet), it's reporting as 6 months past due. I did make a payment of $40 on it in March, but I guess they didn't count it because it wasn't a high enough payment?
So for the student loan, it's showing date opened 9/06 Maximum delinquency of 120 days on 3/07. Estimated date of removal 6/15. I don't want to wait and live here till 6/15. I've heard that you can't buy a house with an outstanding student loan, but that sounds odd to me... My question is, for the purposes of getting a house, do I just continue to "lay low" on the student loan? Do I put it into deferment? If I put it into deferment, will it reset the clock of when it will get off my credit report? Do I try to get them to accept little token payments? I don't have much disposable income at the moment, but I want to do what I need to do both to clean up my credit, and get a house.
I spoke with the Lane Bryant credit card company last night, and they're telling me I'm right on the borderline, where I can still pay on it and prevent it from being a charge off. But I've been reading on here about the pay for deletion option. I'm a little confused as to whether that deletes the "lates" reported, and still shows the good activity, or deletes the entire account. It's showing active for 32 months, and it's just the last 6 that have shown as delinquent. So do I try for the pay for deletion, or a GW letter, or just pay what they want quickly before it goes to charge off?
The only other things I have under "satisfactory accounts" are 6 student loans that show as OK/deferred/closed, and one auto loan that was 15 mos of all "OK"s, but is currently closed. So I feel like I need the Lane Bryant, as I don't really have much else...
I've been at this address for ~8 years, and at my current job for ~4 yrs, and my take home monthly income is about $2100/mo (plus $650 child support-don't know if that factors in)
Sorry it's so long, but I wanted to share what I know about my situation.
Please advise, I don't want to do nothing, because I want to fix my mess, but I've also read online about people doing the wrong things, and actually making it worse on themselves. So I'm really not sure how to proceed.
TIA for your help 
@Anonymous wrote:Hi guys
Not sure if this is the right spot in the forums to post this (posting it under mortgage, because that's my goal), but I'm hoping you can help.
Right now I pay $1,000 in rent. I'm looking at houses around the $100,000 range, so that (according to the little calculators on the side of the properties I've looked at so far) the payments will hopefully be around $450 (I know there's insurance and whatnot that will add to that and increase it some). My hope is that I can get out of the rental game (so tired of my current situation-been here 8 years, and it just gets worse), and also lower what I'm paying for housing, and free up some money that I can use for paying on my student loan. The payments will be around $450 but that doesnt include taxes or anything, My mortgage is 854 dollars, my payment is 1600.
Here's the background on the credit
My credit sucks (don't have my FICO score yet, but the creditkarma estimator put me at 554.),
I have a big student loan (about 38,000) that I've never paid on. And it's been years. I have 4 entries from AES, and they're all under the adverse accounts section, but say they were delinquent, deferred, and closed due to refinance (when I consolidated them into the big Sallie Mae $38,000 loan). This, right here, will probabaly a deal breaker. You will have to get these accounts current, with payments on time of at least, a year, probably 2.
I have a "state tax lien" that is flat wrong. I paid that sucker. I've made a mess of my credit, and own my mistakes, but that's one's not right. I just can't seem to find any proof. So I don't know what to do about that. You need to go to the courthouse on record and get the paper work, then cal the state and find out what is going on. They will give you the information. This will also have to be paid and reported as such.
I also have a BK from 08. I have 5 things that are showing up but say "included in BK" . Should the individual AES and the items that were "included in BK" even be showing up? Seems a bit like a double whammy, like you're getting hit twice for the same thing....? So the student loans were included in the BK?
I have only one charge card-Lane Bryant. It's over its limit, and according to the TransUnion report I've pulled (the only one so far, haven't pulled other 2 yet), it's reporting as 6 months past due. I did make a payment of $40 on it in March, but I guess they didn't count it because it wasn't a high enough payment? 6th months late is a huge derogatory, and you would need to get this account current, and have the late payment age 2 years most likely. You could always get current and try to have them remove the late listing. Also, being maxed out and over the limit is killing your FICO score as well. PFD is usually for collection accounts or charge offs, but its possible to do so on an active account. To be honest though, you probably need to keep this active.
So for the student loan, it's showing date opened 9/06 Maximum delinquency of 120 days on 3/07. Estimated date of removal 6/15. I don't want to wait and live here till 6/15. I've heard that you can't buy a house with an outstanding student loan, but that sounds odd to me... My question is, for the purposes of getting a house, do I just continue to "lay low" on the student loan? Do I put it into deferment? If I put it into deferment, will it reset the clock of when it will get off my credit report? Do I try to get them to accept little token payments? I don't have much disposable income at the moment, but I want to do what I need to do both to clean up my credit, and get a house. You can't buy a house with any real outstanding deliquent debt. It isn't the student loan as the factor, its the late payments, and the negative information
I spoke with the Lane Bryant credit card company last night, and they're telling me I'm right on the borderline, where I can still pay on it and prevent it from being a charge off. But I've been reading on here about the pay for deletion option. I'm a little confused as to whether that deletes the "lates" reported, and still shows the good activity, or deletes the entire account. It's showing active for 32 months, and it's just the last 6 that have shown as delinquent. So do I try for the pay for deletion, or a GW letter, or just pay what they want quickly before it goes to charge off?
The only other things I have under "satisfactory accounts" are 6 student loans that show as OK/deferred/closed, and one auto loan that was 15 mos of all "OK"s, but is currently closed. So I feel like I need the Lane Bryant, as I don't really have much else...
I've been at this address for ~8 years, and at my current job for ~4 yrs, and my take home monthly income is about $2100/mo (plus $650 child support-don't know if that factors in)
Sorry it's so long, but I wanted to share what I know about my situation.
Please advise, I don't want to do nothing, because I want to fix my mess, but I've also read online about people doing the wrong things, and actually making it worse on themselves. So I'm really not sure how to proceed.
TIA for your help
To be honest, I don't think there is a house in any immediate future. You have alot of stuff to clean up before you can even be touched, and it needs to age out a little bit.
I am not saying its impossible, people have done it, but it will take a lot of work, time, patience ect ect...
You need three current and active positive trade lines, no new negative information in the last year, no late payments essentially for two years, no large outstanding deliquent debt, no unpaid public records, no unpaid tax liens, and also essentially no unpaid collection unless its medical.
I am not really clear on the student loan aspect, but it does get added into your DTI, as does your child support, which is whole 'nother animal once your credit is cleaner..
i am not trying to be pessimistic, I went from a horrible credit score to a good one to buy a house in 18 months, but you have a LOT working against you. I hope others can chime in with advice.
-scott
@Anonymous wrote:Hi guys
my take home monthly income is about $2100/mo
I don't think you can pay all those bills and still be able to afford your house, food, living expenses with your current income.
Have you thought about enlisting in the military? It is really a great job working with awesome people, expensive equipment, and having the best employer in the world (the great United States of America). You can start at a slightly higher rank with your degree.
You will get paid significantly more than you are currently making, plus significant bonuses. I have worked many jobs before and wouldn't advocate the military if I didn't think it was the best job ever.
EX:694 TU:744 EQ:777Hi Scott,
thanks for the reply.
To clarify, in the paragraph
I also have a BK from 08. I have 5 things that are showing up but say "included in BK" . Should the individual AES and the items that were "included in BK" even be showing up? Seems a bit like a double whammy, like you're getting hit twice for the same thing....? So the student loans were included in the BK?
No, I probably should've started a new paragraph there...
I have 5 items that are listed as included in BK that are random-2 cc's, a medical bill, a ticket, and a tow company
Seperately, I have 4 AES student loans showing up under the adverse catagory, but each is listed as delinquent 120 days in 06, deferred till 07, then under remarks it says "acct closed due to refinance" on all of the lines.
I just wasn't clear on if everything should be there?
For the items that are included in BK, it seems like you're already being dinged for the bankruptcy, so I'm not sure if you should also be showing every individual thing in the BK?
And for the AES student loans, I didn't know if they should be on there individually under the adverse catagory, since they were re-financed/consolodated into the one large Sallie Mae loan of $38,000, which is also in the same catagory. I don't know alot about this yet, but to me it makes it look like I have the $38,000 delinquent, as well as these other 4 loans on top of that...???
What's the best way to handle getting the Lane Bryant. Though I've read about the GW letter and the PFD, I'm not clear if those are options that still keep your account open, or if those are things you do when your account is closed? And when I talked with them last night they said they would remove the delinquencies, because that's "just what they do, they're a bank, and want to helptme to maintain good credit". When I asked about getting something in writing, they said it wasn't necessary, because of course they're going to take care of it, that's just what they do. But do I believe them?
Thanks again for your help,
Hi again,
I guess I just thought of it as "if I can afford $1,000/mo rent, then I should be able to easily afford $450 (plus tax/ins), and have money freed up to work on that loan".
The Lane Bryant isn't much, it's less than $500, and I could pay it right now, but I just wasn't sure if I should be trying to ask for any removal of what's currently showing up, and how to do that (in writing?)...I know my report's a mess, I'm just looking for how to clean it up the best I can.
In re how can I have $ for a down payment, my father passed away, and there was a little money there. Bout $15,000. So I've got it in a separate account, and been saving it in hopes of getting into a house.
Aside from the normal utility expenses, I only have the Lane Bryant and the Sallie Mae for debt owed... Because like I said, that tax lien is paid, I just can't remember if I paid it by cash or check, or what I did. I was surprised to see it on there, and now have to look for evidence of payment.
I just don't know how to proceed to get the most "positive credit bang for my buck" I guess (or something along those lines ) to get into a house as soon as possible...
I do appreciate the advice
@Anonymous wrote:Hi Scott,
thanks for the reply.
To clarify, in the paragraph
I also have a BK from 08. I have 5 things that are showing up but say "included in BK" . Should the individual AES and the items that were "included in BK" even be showing up? Seems a bit like a double whammy, like you're getting hit twice for the same thing....? So the student loans were included in the BK?
No, I probably should've started a new paragraph there...
I have 5 items that are listed as included in BK that are random-2 cc's, a medical bill, a ticket, and a tow company
Seperately, I have 4 AES student loans showing up under the adverse catagory, but each is listed as delinquent 120 days in 06, deferred till 07, then under remarks it says "acct closed due to refinance" on all of the lines.
I just wasn't clear on if everything should be there?
For the items that are included in BK, it seems like you're already being dinged for the bankruptcy, so I'm not sure if you should also be showing every individual thing in the BK?
And for the AES student loans, I didn't know if they should be on there individually under the adverse catagory, since they were re-financed/consolodated into the one large Sallie Mae loan of $38,000, which is also in the same catagory. I don't know alot about this yet, but to me it makes it look like I have the $38,000 delinquent, as well as these other 4 loans on top of that...???
What's the best way to handle getting the Lane Bryant. Though I've read about the GW letter and the PFD, I'm not clear if those are options that still keep your account open, or if those are things you do when your account is closed? And when I talked with them last night they said they would remove the delinquencies, because that's "just what they do, they're a bank, and want to helptme to maintain good credit". When I asked about getting something in writing, they said it wasn't necessary, because of course they're going to take care of it, that's just what they do. But do I believe them?
Thanks again for your help,
Well, I think in general OC's are a little more ethical than collection accounts, but since you went deliquent on this account, if they don't want to provide you with it in writing, you really don't have any option.
What I would, is I would pay that account into decent standing, get the balance chopped way down (I don't know what the balance is) and work with Lane Bryant to have these late payments retracted. Once the account is charged off, everything becomes a heck of a lot less friendly.
I would worry about the debt you have to legally take care of ahead of the BK stuff, although there are def. rebuilding steps to correcting things listed on your credit report. You should check out the rebuilding forum, it is much better for this kind of stuff.
I would then open up a secure credit card, something like a Capital One secured card, with like, a $200 limit. That is what I did. Just keep it at a low balance and pay every month, maybe open two secured cards.
With three active tradelines, your credit scores should start to recover a little bit within a year, I think.
-scott
@Anonymous wrote:Hi again,
I guess I just thought of it as "if I can afford $1,000/mo rent, then I should be able to easily afford $450 (plus tax/ins), and have money freed up to work on that loan".
The Lane Bryant isn't much, it's less than $500, and I could pay it right now, but I just wasn't sure if I should be trying to ask for any removal of what's currently showing up, and how to do that (in writing?)...I know my report's a mess, I'm just looking for how to clean it up the best I can.
In re how can I have $ for a down payment, my father passed away, and there was a little money there. Bout $15,000. So I've got it in a separate account, and been saving it in hopes of getting into a house.
Aside from the normal utility expenses, I only have the Lane Bryant and the Sallie Mae for debt owed... Because like I said, that tax lien is paid, I just can't remember if I paid it by cash or check, or what I did. I was surprised to see it on there, and now have to look for evidence of payment.
I just don't know how to proceed to get the most "positive credit bang for my buck" I guess (or something along those lines
I do appreciate the advice
Ok, well, its possible the tax lien was just never reported to the CRAs --- you may need to contact your state and see what they have listed for you.. I had to do that, it is possible they just never updated the public record part. If the state has it as paid, get paperwork confirming and you can get that taken care of fast.... It won't help your score, but it will help when you go to get a house, def.
The debt thing helps, but its all about Ratios with getting a house.. so, for example, if you can get your student loans current and the lates removed, it will help your credit score quite a bit.. but if they payments are like, 500 a month, your debt to income ratio will be way outside the scope of what you need to get a house on (realtively) small income.
I would def pay off that lane bryant card all the way to 0, and get them to agree to remove the late fees if you pay in full. Keep it open however.
I would take maybe, 500 dollars of that 15000 and open up 2 secured credit cards, and I would keep those reporting less than 10 percent of its balance. It will hit your average age of accounts a little, but you will gain flex in your utilization, and it will set you up for when you can get a house.
If all the late payments are older than two years, and your student loans are in good standing, and your active accounts are all in good standing, you have a shot in maybe, 9 months to a year, by my estimation.
Here is a consideration. Have any family members that can put you as an authorized user on a credit card account, one with high limit and low blanace that has been open for awhile? this will enhance your FICO quite a bit.
-scott
So for the student loan, it's not going to help me out to put it into the deferred status? (they sent me a paper offering that as an option the other day) Also, if I can get them to do some kind of income sensitive payment or something, so the payment is low, is that going to be acceptable?
With the debt to income ratio, do they include the $650 I get a month for child support in that computation?
I'm not sure about my family members' credit... I'm kind of doubtful they have anything that fits the bill, but it doesn't hurt to ask...
Also, I don't know if it's an option, but if I could find a co-signer, would that help me get in sooner?
@Anonymous wrote:So for the student loan, it's not going to help me out to put it into the deferred status? (they sent me a paper offering that as an option the other day) Also, if I can get them to do some kind of income sensitive payment or something, so the payment is low, is that going to be acceptable?
With the debt to income ratio, do they include the $650 I get a month for child support in that computation?
I'm not sure about my family members' credit... I'm kind of doubtful they have anything that fits the bill, but it doesn't hurt to ask...
Also, I don't know if it's an option, but if I could find a co-signer, would that help me get in sooner?
Well , mortgages are not like cars. You really can't have a 'cosigner' in that traditional kind of way. They factor in everyones income, debt, and credit scores. So you could hypothetically get a house with help, but your scores and debt will still be included.
The child support will also be included into the computation.