Trying to raise scores but collections popped up - for Shane

[Anonymous]

Hi Shane,

Please answer my questions if possible. What should I do? In March or April 2009 I decided to give a go at trying to buy a home. I wanted to take advantage of the first time home buyers incentives. My credit is not great but I wanted to do what I could to improve it. So I contacted a builder and I spoke to a loan officer. He pulled my credit. He told me what I needed to do in order raise my score. It was in the mid 500's. So I did all the things I should have done instructed by the loan officer. So June 09 comes and I pick out the house I want to build and still needed to do some work on my credit. I knew that if my collections didnt pop up then I would have a chance. So September comes around and I was turned down for my loan by the builder BUT I still had a chance with a different lender that the original lender found for me. All I needed was one month with no pop ups collections within the month. I needed to have a score of 580. My score was 570 at the time the original lender pulled it ( they needed a minimum of 620) So next week is the day they are gonna pull the credit. Well I pulled my credit last nite and of course with my luck the collection pops up. Hadnt popped up since 08. All I needed was 10 pts. Now what do I do. I'm screwed and won't be able to get my house that I've been checking on everyday for the last 6 months. Any suggestions? Or do I just wait til next year? Are they still gonna have the tax credit incentive next year?

Message Edited by Lel on 10-27-2009 08:44 AM

[hawkeye33]

I'm SO not Shane, but I will offer that, in terms of the tax credit, you should check out the thread in the link below. It sounds like there's at least a chance of Congress approving this week a measure to extend the tax credit into 2010. Looks like the most likely flavor is a continuation of the $8000 credit with a quarterly phase out. So, if you purchase first quarter 2010, you would get $8K. Second quarter...$6K. Third quarter....$4K. Fourth quarter....$2K.

Of course, nothing's set yet, so it's possible there will be no extension. Unfortunately, it looks like with the conditions you've been given by the lender and the fact that the collection is showing on your report, next year looks like the probable scenario for you. Best of luck.

[hawkeye33]

Oops...the link.

http://ficoforums.myfico.com/fico/board/message?board.id=loans&thread.id=57554