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---Back To The Garden on 6/11/13
OMG! I am so sorry about the loss of your home! :'(
What you need to do is start writing PFD letters to the collection agencies. PFD stands for Pay for Delete. Work on a settlement with them. Settle for less the older the account is. Ask for something in writing saying they will remove the derogatory information after you pay the settlement amount. Call them night and day and send out a batch of letters once a week until those accounts are resolved. You are absolutely right that your score will tank if you pay them because it will place a more recent date on the collections. Many have successfully done this so don't get discouraged. Be sure to sign up for Score Watch so that you can monitor your true Equifax fico to track your progress and also to know when to apply for the mortgage. I would sign a 6 month lease somewhere while you work on clearing up your credit, OK? If you are super proactive, you might get to 620 by the time the lease is up. You probably won't need all of them removed so if one or two don't budge after MULTIPLE attempts, work on the others. A lot of times, they won't work on first try, but maybe the 3rd or 4th try. Do not give up! Keep bugging them by calling and sending letters. Paid COs and collections should be good willed (GW'd). GWs are harder to pull off that is why you don't want to pay until you have something in writing saying they will delete. You can find PFD and GW letter templates on the Rebuilding Your Credit forum here at myfico.
Lastly, you need to start building positive history. Apply for a couple of secured credit cards and pay your bill in full every month. Lenders like to see 3-4 active positive trade lines on your credit to evaluate if you have learned how to managed credit.
Don't keep kicking the can down the road by looking for ways to buy that doesn't require a credit check. These avenues don't build equity or positive credit history in your name. Be proactive and don't ignore it. For collections that are past SOL, send cease and desist letters to those companies.
God Bless you and your wife. Things will get better if you work diligently on your credit. You will most likely qualify in 6-12 months if you work really hard.
Also, see if you can start the mortgage process with NACA right now. Their website is www.naca.com
NACA does NOT approve based on credit score. They have 14 pages of other requirements that have to be met. These are on their website. It can take 6-24 months to qualify with them but it is worth it and will be another path to homeownership. Use either FHA or NACA, depending on which one will qualify you first.
What you need to do is start writing PFD letters to the collection agencies. PFD stands for Pay for Delete. Work on a settlement with them. Settle for less the older the account is. Ask for something in writing saying they will remove the derogatory information after you pay the settlement amount. Call them night and day and send out a batch of letters once a week until those accounts are resolved. You are absolutely right that your score will tank if you pay them because it will place a more recent date on the collections. Many have successfully done this so don't get discouraged. Be sure to sign up for Score Watch so that you can monitor your true Equifax fico to track your progress and also to know when to apply for the mortgage. I would sign a 6 month lease somewhere while you work on clearing up your credit, OK? If you are super proactive, you might get to 620 by the time the lease is up. You probably won't need all of them removed so if one or two don't budge after MULTIPLE attempts, work on the others. A lot of times, they won't work on first try, but maybe the 3rd or 4th try. Do not give up! Keep bugging them by calling and sending letters. Paid COs and collections should be good willed (GW'd). GWs are harder to pull off that is why you don't want to pay until you have something in writing saying they will delete. You can find PFD and GW letter templates on the Rebuilding Your Credit forum here at myfico.
Lastly, you need to start building positive history. Apply for a couple of secured credit cards and pay your bill in full every month. Lenders like to see 3-4 active positive trade lines on your credit to evaluate if you have learned how to managed credit.
Don't keep kicking the can down the road by looking for ways to buy that doesn't require a credit check. These avenues don't build equity or positive credit history in your name. Be proactive and don't ignore it. For collections that are past SOL, send cease and desist letters to those companies.
God Bless you and your wife. Things will get better if you work diligently on your credit. You will most likely qualify in 6-12 months if you work really hard.
Also, see if you can start the mortgage process with NACA right now. Their website is www.naca.com
NACA does NOT approve based on credit score. They have 14 pages of other requirements that have to be met. These are on their website. It can take 6-24 months to qualify with them but it is worth it and will be another path to homeownership. Use either FHA or NACA, depending on which one will qualify you first.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! 
Last App: 4/5/13 Gardening until July 2014
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