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Got a quick question?

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Anonymous
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Got a quick question?

HI I just found out that my Trans Union is 601, I need to get up to at least 620 to get on a mortgage with my boyfriend but I am unemployed right now and looking for a job.  He has put me on his Discover as an authorized user (which I beleive helped boost my socore already) and I have about 4000 in collections, student loand in good standing -deferred since Im in school full time- and a bk scheduled to come of in Nov or Dec. I don't have any cc in my name, I have a sprint bill that I pay on time but its not reporting anywhere and I have had it for a year now, my car I paid of a year ago and had a few lates on it. 

 

 Is there anything I can do in the next 3 to 5 months that could bump me up besides paying of the neg collections ( those will have to wait until I get a job hopefully soon).

And also how do I figure out what my utilization is?

 

Thanks in advance

Message 1 of 11
10 REPLIES 10
Anonymous
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Re: Got a quick question?


@Anonymous wrote:

HI I just found out that my Trans Union is 601, I need to get up to at least 620 to get on a mortgage with my boyfriend but I am unemployed right now and looking for a job.  He has put me on his Discover as an authorized user (which I beleive helped boost my socore already) and I have about 4000 in collections, student loand in good standing -deferred since Im in school full time- and a bk scheduled to come of in Nov or Dec. I don't have any cc in my name, I have a sprint bill that I pay on time but its not reporting anywhere and I have had it for a year now, my car I paid of a year ago and had a few lates on it. 

 

 Is there anything I can do in the next 3 to 5 months that could bump me up besides paying of the neg collections ( those will have to wait until I get a job hopefully soon).

And also how do I figure out what my utilization is?

 

Thanks in advance


I'm not sure what the nature is of the collections you mention, but having a collection removed (as distinguished from simply paid) can give you a score boost.

 

That said, I have yet to hear of a mortgage underwriter who would approve a mortgage when there are unpaid collections on one's credit report. 

Message 2 of 11
Anonymous
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Re: Got a quick question?

Thanks 06 90 percent of it is medical bills I think about 200 of it is non-medical and a big chunk maybe 1200 of it is to one payor ( a hospital) so maybe if they offered to remove it or delet after paid I could see a jump.  Thanks I will work on this. 

 

We know I can't carry the mortgage alone so my boyfriend was going to co-sign the loan he has fico scores that  are 750 and up  so we were hoping tis would be in our favor.  Do you think we should concentrate on paying the collections then or saving the money to help close the gap since the place probably won't sell for what he owes and we could use the money for the difference?

Message 3 of 11
Anonymous
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Re: Got a quick question?


@Anonymous wrote:

Thanks 06 90 percent of it is medical bills I think about 200 of it is non-medical and a big chunk maybe 1200 of it is to one payor ( a hospital) so maybe if they offered to remove it or delet after paid I could see a jump.  Thanks I will work on this. 

 

We know I can't carry the mortgage alone so my boyfriend was going to co-sign the loan he has fico scores that  are 750 and up  so we were hoping tis would be in our favor.  Do you think we should concentrate on paying the collections then or saving the money to help close the gap since the place probably won't sell for what he owes and we could use the money for the difference?


A pay-for-delete (PFD) would be ideal and that shoud be your goal if your short term objective is a score increase.  The forum is full of advice on how to go about a PFD.

 

I'm not sure what "gap" you refer to, but in my dealings with mortgage underwriters unless you have each and every collection on your credit report marked (or somehow verified) as paid, you will get no mortgage, period.  Maybe your particular mortgage underwriter doesn't care about the contents of a joint applicant's credit report and only needs the score, but those that I know do care very much and would consider a collections account on any joint applicant's credit report to be a total deal breaker -- as well it should.  Why would a creditor approve a mortgage when one of the potential homeowners is behind in their obligations, likely to be sued, probably going to have a judgment rendered against them going to have a) their bank account seized / salary garnished so they may be unable to make their mortgage payments and / or b) a lien placed on the property that the mortgage holder has a vested interest in? 

 

If your goal is to raise your score and qualify for a mortgage jointly with another person, I would do my best to start contacting creditors -- newest collections accounts first -- and asking them for a PFD.  You'll be killing two birds with one stone: increasing your score and paying off collections both of which will give you an easier mortgage approval process.

Message 4 of 11
Anonymous
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Re: Got a quick question?

just add another authorized user account. shouldnt have a problem getting the extra points on there.

Message 5 of 11
Anonymous
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Re: Got a quick question?


@Anonymous wrote:

just add another authorized user account. shouldnt have a problem getting the extra points on there.


It doesn't matter how many new accounts you add, if you have unpaid collections you are virtually never getting a mortgage approved. 

Message 6 of 11
Anonymous
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Re: Got a quick question?

She stated she needed a 19 point increase to cosign, and will not be able to get rid of the unpaid collections in next few months. That is why i say the best bet is to add an AU account for the 20-30 point increase she needs to breach the 620 line. Obviously people would love to pay off all their bills and increase their score but as she stated the funds aren't there for that at the moment so id say AU account is best bet.

 

And yes underwriters will give mortgage with cosigner having unpaid collections its just a backup to the 750 score. You can also get a mortgage from our lovely goverment with a 620 score and a 2 year old bankruptcy, fha guidelines.

Message 7 of 11
Anonymous
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Re: Got a quick question?


@Anonymous wrote:

She stated she needed a 19 point increase to cosign, and will not be able to get rid of the unpaid collections in next few months. That is why i say the best bet is to add an AU account for the 20-30 point increase she needs to breach the 620 line. Obviously people would love to pay off all their bills and increase their score but as she stated the funds aren't there for that at the moment so id say AU account is best bet.

 

And yes underwriters will give mortgage with cosigner having unpaid collections its just a backup to the 750 score. You can also get a mortgage from our lovely goverment with a 620 score and a 2 year old bankruptcy, fha guidelines.


Yes, she needs a 620 to co-sign on a mortgage.  Assuming your suggestion of adding more AUs will get her 19 more points, she is still not getting a mortgage with all the collections.  So, in the end she still has to pay the collections or forget about a mortgage.  Paying the collections will give her a score boost without having to add more AUs.  Why expend double effort?

 

I think you are confused about bankruptcy.  Of course you can get a mortgage with a bk, but you cannot get an FHA with collections.  That is because of the simple reason that a discharged bk will not turn into a judgment / garnishment / lien and effect the mortgage holder's interests.

 

I'm not sure where you will find a mortgage underwriter willing to accept an applicant with unsatisfied collections even with a 750, but please let me know who they are because those suckers can help some people I know get mortgages who've been turned down by a lot of banks.  And even if it were possible, the 750 you mentioned is never going to happen with OP just by adding a few more AUs. 

Message 8 of 11
Anonymous
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Re: Got a quick question?

@ 06 thanks the gap I was referring to is the 20-25k we would need to come up with if someone purchased our home for less then its worth right now.  Two of the collections should have shown under my bk so I need to dispute those and as I said a large portion is with one particular hospital so Im thinking if we get them to negotiate a price for a paid in full or delete that could raise my score.

 

Another question for you...My bk said its been on my record for 9 years 9 months, when it drops will that increase the score enough?....

 

 

Message 9 of 11
Anonymous
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Re: Got a quick question?

@Authuser...wish I could but he only has one credit card so I had been getting offers from place like orchard and capital one for a unsecured but I thought it would be best not to even look at that route until 1- a had job and 2- we knew it would affect my score negatively... the loan officer he worked with to get this house is going to run my credit and do a simulator to see just exactly what I need to do to allow me on the a mortgage luckily we still have time and aren't in a need to sell cause we are behind situation, we just found some brand new single family homes that they hadn't even built yet going for far less right now then some are trying to sell for so we though it would be great to move.

 

Thank for all the help....

Message 10 of 11
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