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10-11-2012 07:52 AM
I can't believe this has happened, but it has. I can only kick myself so far. Now I need to know where to go from here.
We are in a house, we are renting and have to close on it by the summer. The earlier the better. We were planning on going the FHA route, as my credit score is 655 and the 3.5% down is easier to come up with as opposed to 20%. This month is one year of no lates - there were mortgage lates last year as we were paying for two homes due to job relocation. None beyond 30 days late. We always paid our rent on time.
We switched cable providers and I tried to pay my final balance and couldn't log on. It slipped my mind. I recieved a letter from a collection agency, CPA. I paid it instantly, as they told me that it wasn't on my report yet (It was not, I have monitoring on) and I should pay it now to prevent that. Like an idiot, I listened. Anyway, I have a thread on the rebuilding credit forum to try and get this removed.
Let's say that it won't go away. My credit score is now down to a 614. I'm below 620. The collection shows to be sent to the agency in June, Equifax shows first delinquecy in April. When am I good to go FHA? Is there any way to go conventional with this on my credit? Worst case scenario I pull the 20% out of my 401K, though not ideal. Will June count as 12 months, or April, or next October (as this is when it showed up, and had a status change). I'm going to guess that my credit will bounce back over 620 by the spring or summer, and I KNOW that there's nothing else out there lingering to take it back down.
Thanks so much.
10-11-2012 11:14 AM
I will GW them, though it seems as if there is little luck from my online searches unless someone has a specific email address to a person there. I've sent out about 5 GWs through various routes with Comcast but will try CPA.
10-11-2012 01:20 PM
Also make sure you opt out so to limit the chances of anything else popping up.
10-11-2012 02:12 PM
it may be long enough that when it comes time to go to underwriting you may just need a LOE but I would still try and GW it and work on inproving your credit for the next few months.
10-11-2012 03:39 PM
The twelve month clock starts from when you apply. So say you apply June 5, 2013. It would go back to June 5, 2012.
You'll be able to get the collection removed if you try everything you can.
10-11-2012 04:27 PM
I do understand that the 12 month clock starts from the application date, but at what point will this be considered twelve months old according to FHA? April, June or October? I'm trying to figure out worst case scenario for 12 months.
Equifax shows first delinquent as April, sent to collections in June, paid in October. Experian shows only the June date.
I'm going to try EVERYTHING to get this removed, but I'd like to know that if I am unable to (and I'm worried about that being the case), what the earliest date will be to apply. We've had no lates besides the mortgages a year ago, no other collections, no judgements, so keeping good credit between now and then will not be a problem.
10-11-2012 07:57 PM
Go here and opt out. It helps keep the CAs from sniffing around when you go to apply for a mortgage. Yes, your friendly CRAs do notify CAs of people that are applying for mortgages.