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Getting started and need some advice

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Anonymous
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Getting started and need some advice

Hello all,

 

I am so thankful to have come across this forum today. We are currently at the very beginning stages of shopping for a mortgage - literally, just talking of applying. I'm a little hesitant to do it now, because of my credit report. Let me explain further.

 

In 2006, I graduated college and moved to NYC, only to find myself making enough money to pay enough on my credit cards to keep them open, so I could continue using them to survive. I made the decision that I would not live the rest of my adult life dependent on credit cards, and that it would stop then and there. In the fall of 2006, I stopped paying on ALL of my cards.

 

Flash forward 5.5 years later, and I've left the city life and would like to purchase a home with my family. While checking my report, I was surprised to see that it's as high as it is (I was expecting much worse). There is a mix of bad and good. I am hoping to use this forum to find out what I need to do to improve, and to get an idea of when I could potentially be approved for a mortgage.

 

Here is a breakdown of what it's showing:

 

The bad (collections):

 

RCS/CVF Consumer Aquisitions

- $5886 collection (also reported as the original Wells Fargo credit card)

- $3066 collection (also reported as the original Wells Fargo credit card)

 

Asset Acceptance

- $3773 collection (originally an Amex that is NOT being reported. Collections company trying to settle for amounts between 400-1000; will paying delete this?)

 

Macys 

- $492 120-days late, closed account

 

Capital One

- $3277 charge off

 

Paypal

- $700 chargeoff that was settled with a collector (I do not know why it's still on there)

 

 

The good:

- Public Savings Bank secured card, $500 limit (opened in 10/10, always on time, at about 80% of my balance right now)

- Installment Auto Loan $18,000 balance (opened in 7/11, always on time)

- PIF auto loan

 

The questions I'm hoping to have answered:

- Should I wait for these things to fall off (as several people have told me)?

- Do I settle and/or PFD?

- Do I dispute the newer RCS/CFV collections, or request a debt validation?

- Is disputing reports a bad idea?

- Is there any chance on earth I could be approved for a mortgage now?

 

 

I know I gave you all an earful, but if anyone is willing to offer advice, I would be ever so appreciative. Thank you, and I'm looking forward to learning so much here!

Message 1 of 2
1 REPLY 1
RobertEG
Legendary Contributor

Re: Getting started and need some advice

The questions I'm hoping to have answered:

- Should I wait for these things to fall off (as several people have told me)?

  That option is always yours.  However, they have options too.  Are the debts still within SOL, and thus still subject to legal action?

- Do I settle and/or PFD?

   Settling will forgo legal action, but wont result in CR deletion, and thus any score improvement.  PFDs are optional on their part, so again the

    SOL status is relevant to their possible response.

- Do I dispute the newer RCS/CFV collections, or request a debt validation?

   Is there anything inaccurate in their reporting?  If not, there would be no valid basis for a dispute.

   Disputes and DV are not exclusive alternatives.  You can do one, the other, or both.

- Is disputing reports a bad idea?

   Its not proper unless you have a valid inaccuracy in their reporting to contest.

- Is there any chance on earth I could be approved for a mortgage now?

  That's up to the lendor, but having unpaid bad debt is almost always a killer for a mortgage loan approval.  Most will require satisfaction of unpaid bad debt.

 

Message 2 of 2
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