I was in the mortgage industry but never had an opportunity to do VA loans. Due to a life changing event I filed a Chapter 13 in 2006. When the asset protection wasn't going to work, I had it dismissed and lost my home. It was not a VA mortgage.
In the last four years I have rebuilt my rating and am still haunted by lingering issues. I have a mid score of 665 and my wife's is 770. My credit was stellar prior and has been near perfect since with zero late payments. I have had perfect verifiable rental history for four and half years. I have worked for the same company for those four and a half years. My back ratio is 30% on a 325,000 loan. We have 6000 in residual with the VA asking for 795...lol.
The bank I applied with is asking me to pay dead collections of 76.00, 815.00, and 1125.00 none of which have reported since 2006 and will fall off in another 2 years.
GMAC sold the account that claimed I owed 10k a few years ago and bottom feeder collectors keep it alive and then sell it every few months to someone else for pennies on the dollar. I can probably close it for around 3-5 grand.
I still cannot get past a manual underwrite on a VA loan due the declaration of the BK and FC in the last 7 years.
It is referred/eligible so they can verify. I worked hard to repair my scores and if I pay these inactive accounts, I will get hammered.
Again, I have not had a late since the BK. A medical collection was filed in 2008 due to surgery and the BCBS didn't pay the one small bill. I had to refile but the office sent it to collection anyhow. I paid it immediately and my mid-score went from 700 down to where they remain at 665.
Any advice would be appreciated.
