I *dislike* these kind of posts...but here goes. Advice? I'm at my wits end!

[tcp78]

I don't usually make posts like this. In fact, I usually despise them cause they're sooooo long.  However, I'm at my wits end.  Single mom, 2 children, deadbeat ex that doesn't see kids or pay child support, I'm going to school (4 nights a week, physically exhausted) And I just found my dream house (ok, it needs a little TLC for only $79,900 and guess who can't get a mortgage.  Yes, that would be me!   

My Equifax (pulled from here yesterday) is 554

2 months ago it was 574.  Paying an old collection account below caused it to DROP 20 points.  I received the score watch alert the same day they updated it as PAID collection.  Which of course now makes me reconsider paying ANY of the othere old collections I have. 

So I come here for advice.  I've been trying to clean up my report on my own since January.  Hey, I started in the 490's so I think I've done an okay job....maybe.

Anyway, I'm here for advice.  Which one should I pay next?  I'd love to pay something that's really hurting me in hopes that in the next month or so my score will JUMP to 620 and I can get a mortgage and still get that dream house.  One can hope, right?

So here it is, everything that's on my report.

I also have $32,975 in student loans that are on my report but currently deferred since I'm still  in college.  Which, speaking of this rather high balance, will that come into play when getting approved for a mortgage?  Even if they are deferred??

In advance, I appreciate any advice anyone gives.  It will certainly  help myself and my 2 kids get into our dream home eventually.

Charge Account

 Gemb/Jcp Status as of  Sep, 2011

Date opened [?] Jan, 2009

Date of last activity [?] Mar, 2009

Largest past balance [?] $538

Account Type [?] Revolving

Account holder [?] Individual

Industry  Complete Dept. Stores

Descriptions [?]

Balance $763

Charged off account

Charge

Student Loan Account

Nelnet Status as of  Sep, 2011

Date opened [?] Dec, 2003

Date of last activity [?] Apr, 2011

Largest past balance [?] $1,927

Account Type [?] Installment

Account holder [?] Individual

Scheduled Payment Amount [?] $34

Industry  Other

Descriptions [?]

Balance $2048

Student loan - payment deferred

90+ days late 6 times (Sep 2010, Aug 2010, Jul 2010, Jun 2010)

Student Loan Account

 Nelnet Status as of  Sep, 2011

Date opened [?] Apr, 2004

Date of last activity [?] Apr, 2011

Largest past balance [?] $698

Account Type [?] Installment

Account holder [?] Individual

Scheduled Payment Amount [?] $12

Industry  Other

Descriptions [?]

Balance $741

Student loan - payment deferred

90+ days late 6 times (Sep 2010, Aug 2010, Jul 2010, Jun 2010)

Student Loan Account

 Nelnet Status as of  Mar, 2011

Date opened [?] Apr, 2004

Date of last activity [?] Nov, 2010

Largest past balance [?] $222

Account Type [?] Installment

Account holder [?] Individual

Scheduled Payment Amount [?] $0

Industry  Other

Descriptions [?]

Closed or paid account / zero balance

Student loan

90+ days late 6 times (Sep 2010, Aug 2010, Jul 2010, Jun 2010)

Student Loan Account

 Us Dept Ed Status as of  May, 2011

Date opened [?] Jan, 2005

Date of last activity [?] Feb, 2010

Account number [?] XXXXXX8191

Largest past balance [?] $925

Account Type [?] Installment

Account holder [?] Individual

Scheduled Payment Amount [?] $25

Industry  Other

Descriptions [?]

Closed or paid account / zero balance

Student loan

60 days late 2 times (Mar 2010, Mar 2007)

Credit Account

 Portfolio Status as of  Sep, 2011

Date opened [?] May, 2007

Date of last activity [?] May, 2006

Largest past balance [?] $1,285

Account Type [?] Open Account

Account holder [?] Individual

Industry  Factoring Companies

Descriptions [?]

Balance $1,558

Consumer disputes after resolution

Collection account

Credit Account

 Fst Premier Status as of  Aug, 2011

Date opened [?] Aug, 2008

Date of last activity [?] Sep, 2008

Account Type [?] Revolving

Account holder [?] Individual

Industry  National Credit Card Cos.

Descriptions [?]

Balance $424

Collection account

Charged off account

debt/collection

Credit Account (PAYING THESE PEOPLE CAUSED MY SCORE TO DROP 20 POINTS!)

 Cap One Status as of  Sep, 2011

Date opened [?] Jan, 2005

Date of last activity [?] Dec, 2005

Largest past balance [?] $869

Account Type [?] Revolving

Account holder [?] Individual

Industry  All Banks

Descriptions [?]

Paid charge off

Account closed by credit grantor

Bad debt/collection

Vehicle Loan Account

 Christianc Status as of  Aug, 2011

Date opened [?] Nov, 2005

Date of last activity [?] Sep, 2007

Account number [?] XXXXXXXXXXXXX5002

Largest past balance [?] $6,028

Account Type [?] Installment

Account holder [?] Individual

Scheduled Payment Amount [?] $233

Industry  Credit Unions

Descriptions [?]

Balance  $2254

Charged off account

Auto

Bad Debt/Collection

120+ days past due

Credit Account (THESE PEOPLE SHOWED UP AND NEVER EVEN SENT ME ANYTHING IN THE MAIL OR CONTACTED ME BY PHONE)

 Midland Status as of  Sep, 2011

Date opened [?] Jul, 2011

Date of last activity [?] Apr, 2008

Largest past balance [?] $363

Account Type [?] Open Account

Account holder [?] Individual

Industry  Factoring Companies

Descriptions [?]

Balance $363

Collection account

No contact information provided

COLLECTIONS

Collection on debt to: Baker College C

The collection agency "168YC00207" was hired to collect a debt of $1,739 originally owed to "Baker College C" on account number "XXXXXXX".

Collection agency [?] 168YC00207

Original balance [?] $1,739

Current balance [?] $0

Date assigned [?] Apr, 2010

Original lender [?] Baker College C

Account number [?] XXXXXXX

Account holder [?] Individual

Account descriptions [?] Consumer disputes this account information

Collection account

PUBLIC RECORDS

Bankruptcy filed on Jul, 2004

Type [?] Bankruptcy

Court number [?] 168VF00077

Case number [?] 0460124-DSP-10/04

Date filed [?] Jul, 2004

Status [?] Discharged CH-7

 I HAVE NO IDEA WHAT THIS IS FOR?  i THINK IT'S FOR MY OLD DIVORCE ATTORNEY THOUGH...WHICH I'M CURRENTLY PAYING ON...NOT MEDICAL?

Legal Item filed on Nov, 2008

Type [?] Legal Item

Court number [?] 168VS00261

Case number [?] 082279GC

Date filed [?] Nov, 2008

Amount [?] $1,086

Description [?] Medical

INQUIRIES

Inquiries that may be affecting your FICO® score

Total: 5 Times

Date Company making the inquiry

January 31, 2011 Comcast 

January 14, 2011 Cr Techinc 

November 25, 2010 Webbankbml 

October 28, 2010 Gemb/Jc Pe 

October 25, 2010 Gemb/Oldny 

ON REPORT BUT DOES NOT HAVE A “FLAG” THAT THEY ARE “NEGATIVE”

Credit Account

 Pinnacle Status as of  Sep, 2011

Date opened [?] Mar, 2011

Date of last activity [?] Oct, 2008

Largest past balance [?] $579

Account Type [?] Open Account

Account holder [?] Individual

Industry  Factoring Companies

Descriptions [?]

Balance $579

Consumer disputes this account information

Collection account

Credit Account

 Dte Energy Status as of  Aug, 2011

Date opened [?] Jun, 2010

Date of last activity [?] Aug, 2011

Largest past balance [?] $330

Account Type [?] Open Account

Account holder [?] Individual

Industry  Electrical Light & Power

Descriptions [?]

Utility

Balance $272

Pays as agreed

Credit Account

 Verizon Status as of  Aug, 2011

Date opened [?] Mar, 2005

Date of last activity [?] Jan, 2006

Largest past balance [?] $401

Account Type [?] Open Account

Account holder [?] Individual

Industry  Telephone Companies

Descriptions [?]

Consumer disputes this account information

Paid charge off

Bad debt/collection

90+ days late 24 times (Jun 2008, May 2008, Apr 2008)

Credit Account

 Hsbc Bank Status as of  Apr, 2008

Date opened [?] Jan, 2005

Date of last activity [?] May, 2006

Largest past balance [?] $1,221

Account Type [?] Revolving

Account holder [?] Individual

Industry  All Banks

Descriptions [?]

Consumer disputes this account information

Account transferred or sold

$0 Balance

Bad debt/collection

30 days late 1 time (Jun 2006)

60 days late 1 time (Jul 2006)

90+ days late 4 times (Nov 2006, Oct 2006, Sep 2006, Aug 2006)

I'm not sure what the total past due is including?  The bills don't match up?

As well as the revolving accounts?

Total past due	Credit history	Accounts with negative indicators
$5,397 past due on 6 accounts	7 Years	10

Total balance of
Your revolving accounts	$1,187
Your mortgages	None
Your installment loans	$38,018

[JM-AM]

In my opinion you can clean up your report but being realistic it will not happen in a month or two. While you can increase your score some and may give you a little more hope I still do not see it increasing enough to qualify for a mortgage in such a short period of time. The other thing to bring to your attention which I believe you know is that your scores are not the only deciding factor in approvals for a mortgage. I understand you want to buy a home (your dream home) and you mention it needs some TLC, this may also cause reasons for denial since it may not appraise enough for loan approval. In my opinion you should work on cleaning up your report which will take time. Hopefully you will be done with school and in your career choice by then and can give your kids a new dream home at that time. In the mean time do not be late with any more payments and read up in the forum on how to do PFD's, and Goodwill letters as you have funds to pay off those bad debts. Sorry I didn't have better.news for you but I'm not known for sugarcoating things. Good luck and I am sure others will voice their opinions.

[chasmith]

Another thing that might be a challenge, even if your score came up, is that usually you'll be required to pay off any open collections before you can close.

A you're able to, try to pay off the collections using PFD so you don't have the old negative hanging around.

[dharalex]

There is mortgage credit board that has a number of mortgage gurus that may be able to offer you some advice. IMHO, I think you should pass on that house ( for now) and concentrate on finishing school and repairing your credit. This site offers everything you need to get that done. It's time to practice delayed gratification....one day, you and your kids will be in another "dream" home you will love more then the one you just found! Good luck!

[tcp78]

I probably will pass on the house, not because I want to but because I have to.  Either way, I still have to focus on paying some of these debts and writing "goodwill" letters.  Just not sure which one to tackle first...

[bruiseviolet]

Here goes my advice =)

#1)  Not to be a downer- but don't worry about the house now.  I was here in your exact position in March.  I've been working my butt off and have only gotten my score up 15 points.  It will take LOTS of time- and 99.9% of the time to get approved for a mortgage- you will need to have everything paid anyways.

#2)  2 months ago it was 574.  Paying an old collection account below caused it to DROP 20 points.  I received the score watch alert the same day they updated it as PAID collection.  Which of course now makes me reconsider paying ANY of the othere old collections I have. 

• Paying off a collection account will not do anything for your score.  A collection, whether you paid it, or whether you haven't paid a dime, has the same impact on your score.  What will change your score is either increasing how many collection accounts are reporting- or decreasing how many collection accounts are reporting (showing up).  Read the forums/search for PFD (pay for delete).  This is how you can tackle some, basically you send a letter saying, I will pay the amount I owe in full (or a partial settlement- whatever) in turn for them having the trade line removed from your credit report- thus increasing your score.

#3)  Since you have already paid the account without doing a PFD (pay for delete), you should look and search here for a GW (goodwill letter) which basically tries to get them to remove the tradeline after you've paid it.  These are harder to get than a PFD,  In my opinion.

#4)   I also have $32,975 in student loans that are on my report but currently deferred since I'm still  in college.  Which, speaking of this rather high balance, will that come into play when getting approved for a mortgage?  Even if they are deferred??  

• I am no mortgage expert- but from what I know, Mortgage lenders typically say that no more than 28% of your monthly gross income should be going for a mortgage payment/property taxes/insurance and that your total debty should be no more than 36% of your gross income.  (28/36 rule). 

#5)  Having the lates showing on the student loans makes not for a happy score  (I know - I've have the same problem with one of mine.)  Just make sure they are either deferred or that no matter what you do not make late payments on any of them again. =)  Same thing with the vehicle loan- having a 120+ day late showing isn't good for your score.

#6)  Midland account-  research on the forums- probably will need to send them a DV letter- otherwise if you're positive they never sent anything ever or called- search there are other ways to deal with this (i think you DV the CRA directly in a way-= look it up, it's not something I've had to do so I'm not familiar with it).

#7)  As for the judgement under the public records-  you will need to either look online or go down to the court house and look up the docet number (case number) to see who it's from/what it's for-  then you can check if you were properly served etc.....  Judgements are a big bad hit on your score- and there's nothing really to make them go away- unless you can contact the plaintif and see if they will file a motion to vacate the judgement if you pay it in full.  

#8)  Can't do anything about the inquiries- unless you really didnt authorize them.  Best advice for that- is to not apply for anymore credit or cards at any stores.

#9)  While the ones under "not marked as negative" may not be hurting your score-  I think an underwriter might look at those not too kindly, as basically every account has 90+ lates on it at some point.  You are going to need to get some good credit lines open that you pay on time every single month- 

[guydiver]

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@tcp78 wrote:

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@tcp78 wrote:

I probably will pass on the house, not because I want to but because I have to.  Either way, I still have to focus on paying some of these debts and writing "goodwill" letters.  Just not sure which one to tackle first...

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You can start with PFD letters for the Charge Offs one at a time starting with the one you can pay off first should the creditor accept.  One step at a time.  You have a LONG way to go here, don't kid yourself.  You aren't going to qualify for a mortgage anytime soon unless you have a ton of cash lying around.  Just sit down and make a plan and stick to it.  Don't forget to get everything in writing, and don't accept any telephone agreements.  Collection agents may come your way.  Most of all, keep your existing positive trade-lines in good standing. Applying for any new credit will likely only lower your score, successful or not.  You can write GW letters for any past lates, as long as the account is in good standing now you have a chance.  You have a lot of work to do, but there is also a lot of room for success here.  Focus on the Rebuilding forum here to help you.   If you have specific questions, a lot of good people on here will be glad to give advice.  Good luck.    

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[tcp78]

Thank you all for your advice.   I really appreciate it.  I want to kick myself in the behind for getting in debt like this again, especially after my bankruptcy but getting a divorce last year didn't help things.   I think I'll start with the judgement for my old auto loan and go from there. 

Thanks again.

[RobertEG]

If I were in your apparent postition, my first concern would be with preventing further hemmoraging of your CR.

I would first determine the statute of limitations on each of the unpaid debts, as they have the chance of legal action to seek recovery.

I would determine the date of first delinquency (DOFD) on each account with unpaid debt, as that is also probably the date of commencement of your SOL period.

High balances of unpaid debt still within SOL would be my first concern.