@SGTRECON39 wrote:
Hi Everyone,
I have support arrears on my reports from 2 counties. San Diego being the largest with 2 accounts; one with 63k and one with 13k. I pay on time, but the arrears were built up due to me not knowing about my son until he was already 4yrs old and they charged me back child support. She was getting assistance from the state and at 10% APR the balance has racked up. How much will this impact my score? Of the 63k, 4k is principle owed to the mom, 5k in interest owed to the mom and 53k owed to the state and 28k of that is interest. I want to improve my score so bad, but I don't have that kind of money and by making payments I'll be dead before it's ever paid. I guess my question is how much does this and a tax lien impact me and can I ever buy a house with this showing even though it's paid on time? I have the VA loans from my Marine days which I believe would be easier to use.
Any thoughts or suggestions?
Is the tax lien a direct result of the child support arrears?
In any event, situations such as yours are, unfortunately, all too common. I would suggest you look into the Compromise of Arrears Program (COAP). Under certain circumstances when arrears are owed to the state and not the custodial parent you can get a reduction. At a minimum I would set up a payment plan. You can also try to negotiate a separate settlement with the custodial parent for what you owe her.
There was a time in the not so distant past when lenders didn't pay much attention to derogatory data regarding child support. Those days, however, have changed. Especially problematic is the lien. Unfortunately with an unpaid lien reporting it would be virtually impossible to obtain a mortgage. The tradeline concerning child support arrears may also be an issue, but it depends exactly on how it is reporting.
If you are still in the Marines, head down to SJA. Every attorney there should know about the COAP if stationed in California. If not, they can easily find out and walk you through the requirements and the process.
