Best Steps to Repair FICO after Mortgage Delinquency (90 Days)

[Anonymous]

To make a long story short...

1) Contacted IndyMac way back in June '08 & tried to let them know a trainwreck was coming. Naturally, it didn't matter to them. Pathetically,they only reward bad behavior instead of helping people who are current. This means (and I was specifically told this) "We can only help you if you are behind. If your not, there's nothing we can do."

2) Divorce in April '08

3) Business Failure in August '08

4) After no success trying to work w/IndyMac I hired a lawyer to help me with obtain a loan modification.It appears after nearly 7 months of work this may become a reality. Essentially, I had no alternative to default to get IndyMac's attention. I don't mean this to be deceitful. I could have worked 3-4 jobs just like eveyone else to stay current but it doesn't matter. You have to be delinquent, hire a lawyer to have any hope of them working with you.

5) My FICO was around 725 and I dread thinking what it may be now

6) Anyone have an educated estimate on what my score might be now?

7) What are the key steps to rebuilding my score at this point? Did read about a GW letters re: specific situations. Would this possibly work? i.e., sending a letter to the credit bureaus explaining what occurred?

Thank You

[Anonymous]

Sending GW letter would be your choice, however you send the GW letter to the creditor reporting, not the CRA.

I would wait until the loan modification goes through and you are all caught up and on stable ground again, then send the GW letters.

[Anonymous]

okay...understand. But is there any track record of a GW letter actually working re: a mortgage delinquency? Seems like a long shot to me but having always had a 725+ credit score I don't know much about this. If it helps anyone else my score has gone from 740 to 613. Any other tips on raising score other tjhan the obvious - reducing amount of cc debt, time, staying current, reducing DTI, etc.?

[Anonymous]

Just keep your other TL current and as lates age, the less they hurt.

Yes, many people have had luck with GW letters. I think in this current economic situation, lenders are more understanding. It isn't like you are the only one who has been in this situation and they realize this isn't just you.

[Anonymous]

okay makes sense. Not sure I'm following what you mean by "TL."

What exactly would a letter contain that the lender may write to the credit bureaus? It appears my loan modification will be complete in a matter of days, after 9 months of work. Didn't have to go delinquent if they were just able to make a decision/approve my loan modification within a reasonable time. 9 months is a bit much not to mention attorney fees.

[Anonymous]

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samoset03 wrote:

okay makes sense. Not sure I'm following what you mean by "TL."

What exactly would a letter contain that the lender may write to the credit bureaus? It appears my loan modification will be complete in a matter of days, after 9 months of work. Didn't have to go delinquent if they were just able to make a decision/approve my loan modification within a reasonable time. 9 months is a bit much not to mention attorney fees.

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TL = Tradeline

What kind of letter to the credit bureaus? Lenders update electronically with the credit bureaus and if they accept your GW, they won't likely send the credit bureaus a letter.

Only letter you need to send is a GW to the lender.