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12-25-2012 04:29 PM
My dad is 57, permanently disabled, and on SSI which he gets just under $1000 a month. He was recently prequalified for a VA loan, 0 down. He lives in a small town where homes are 50-90K. He is currently spending over half his income on his rent, and he makes "too much" for any assistance. He needs a 620 midscore, and currently has a 622. However, he wont be apping until June or July. I need some advice on how to proceed.
His credit contains:
2 paid judgements from 2006, both set to fall off in the next 5 months.
1 auto loan that was repo'd and sold at auction- reported by Capital one as "sold to another lender" and 0 balance.
This same account is in collections for $2800 with another agency since 2007.
3 paid as agreed and closed loans from 2000-2006. All 3 show positive history only.
1 collection for medical for $300 from 2008.
And that is all. I added him as an authorized user to my 5 year old capital one card yesterday. Hoping for a boost there (do you think he will get one)? So, do you think I should offer PFD on these other accounts? My mom left my dad in late 2008 after he was run over at work and could not work anymore, and their divorce papers state she was laible for marital debts since he had no income at the time. However, I have heard that CAs and CRAs don't care what divorce papers say. If I do settlements, I will have to pay them, as he can't. What advice would you all offer on these? I know they will DV as he gets bills every month from the CA and also gets calls from the auto loan company all the time. He has told them that his ex wife is responsible, but they still call. I want to help him get into a home.
12-25-2012 06:37 PM
I know the feeling of trying to help parents out. Mine now live with me and both incomes combined are 1,000 a month and they have collections and judgements.
I am out in left field here but I was reading where FHA is offering loans for purchase or refinance with a credit score as low as 560. But its not zero money down.
My parents had a home and it was in forclosure. I moved them in with me, took over the home ( land contract) and have a renter in it but I am waiting for leins to be put on it anytime. I dont know what I can do to help them. They dont have the money to pay off the debts. They cant refinance the house becuase of thier credit.
Would VA let you co-sign with him? There was people saying on here about being able to get a judge to vacate the judments if they are paid.
Hopefully some one will jump in here. You can also do a search using the term judgement and see what others did or tried in the mean time.
12-25-2012 07:34 PM
Since the judgements will be 7 years old in a few months I will let those age off. My dad had no other debt other than what is listed. So, I am hoping with the adding as AU on there, and the juedgements falling off, that his scores will go up. I just am not sure how to handle those collections. From what I understand, it is really hard to get a judgement on some one on SSDI, so I don't think they will sue. But its a long wait for those to age off. I hate to have to come up with a ton of $, but it might have to happen. I can't cosign for him, my credit is shaky as it is, so that isnt really an option. And he has 0 money to put down. ):
12-25-2012 08:40 PM
You could try PFD or work out a payment arrangement with them with proof of your dads income. The most they can do is say no.
12-25-2012 10:38 PM
Noting that the collection stemmed out of the repo, have you received an accounting of the net debt due?
The net should be the difference between what was owed when the car was taken minus what they received when they sold it at auction.
Have you received an itemization from the new owner/debt collector, and if so, does it reflect the proper debt now due?
A DV at this point would apparently be untimely, but it does not hurt to send anyway, and attempt to ensure their accounting of the net debt is accurate.
You are correct that they will come after all parties who were signatories to the original loan, so they wont excuse him and go only after her.
However, if the divorce decree stipulates that she is responsbile, and the debt is in arrears, has he taken action to contact the divorce court and file suit for her breach of their divorce decree? That would be the way to recover her indebetness and at least get the collection paid.
Out-of-pocket PFD might work, so give it a try. However, if you have time to resolve any other issues first, that might be avoidable.
12-26-2012 06:37 AM
I think you should try for a PFD for the repo and the medical debt. I'd try to get a discount if at all possible. Offer a percentage. He will also need to build something positive in the mean time. Maybe a secured card or two. As far as the divorce decree, they really don't care, they just want paid.
12-26-2012 08:57 AM
I honestly don't know what mail he gets from them. He just tells me they harass him, and call him and send him bills constantly. I suppose I could do the DV and see what they say, but given its Capital one I am sure they will DV. I think the PFD is a viable option. Should I send it and say I will settle it for like 20%? With proof of income saying this is all that can be offered, and that it is their only chance for payment? I know SSDI cannot be garnished so they really have no way to collect from him. Messing up his credit is their only option. My mom won't pay it either, she took their brand new car that was paid for in cash by a settlement from the company where my dad was hurt (nice of her wasn't it?) I did go ahead and walk him thru disputing with the divorce option, so we will see if any of them give in. I figured it is worth a shot.