Hi everyone,
I'm looking for some advice in cleaning up my credit asap, as my wife and I are supposed to close on a house in 30 days and we want the best chance at obtaining a Mortgage. There are multiple issues with cleaning up credit and obtaining a mortgage so I'm not sure where to post.
I went through a rough divorce in 2012 and 2013 where my great credit was ruined from getting stuck with literally dozens of credit cards that my ex-wife had opened. I had no idea how many there were until I was stuck with having to pay them during the divorce. In the midst of the divorce, many went 120+ days late as well as a few that went to collections. At the end of the divorce, I had charged off multiple cards so my ex-wife could not put me in more debt. I had no idea this would harm me. But live and learn!
Since the beginning of this year, with a score in the low 500's, I have bounced back significantly with the help of my wife. My current Fico scores are Experian 619 - Equifax 629 - Trans Union 636.
However, when Wells Fargo ran our credit 2 days ago, my scores were 603, 609 and 647. Why the huge difference? and are those Fico scores? We're waiting to find out on Monday, but it's a huge difference as to what MYFICO is showing me now. Now I am in a panic trying to search for a different Mortgage lender with a realization I will have to settle for an FHA instead of a Conventional mortgage.
I am in the midst of writing several Good Will letters to Citibank and Bloomingdale's for some mishaps when the credit cards were paid off after the Divorce. For one, Citibank/Best Buy had applied a late charge to the credit card at the same time that the pay off check was sent. Since I had sold the house that I and my ex-wife had lived in, the statements with the late fee never reached me. With me under the impression that everything was paid off and good, 5 months went by with no idea that the fees had gone up to $300.00+. I found this out on MYFICO 2 months ago and I have since paid that off entirely, however, it had gone to collections.
A similar issue happened with Bloomingdale's, after I paid this credit card off entirely (with proof the check was cashed), I kept receiving statements over and over for the same amount. After months of phone calls and re-faxing the proof of payment, I finally got through to someone competent enough who admitedly said they had no idea where to apply the payment. Because of that mishap on their end, my Bloomingdale's credit card shows 120+ days late.
Unfortunately, these are recent blemishes on my account, but with good explanation, so I'm hoping the Good Will letters will work for those.
Also in the last week, I have gotten hit with AMEX newly showing a derogatory remark after I paid $1400.00 to them.
That is another problem I have. The AMEX is the family Business's credit card, but I am listed as the Guarantor, however, I am not the business owner, my father is. AMEX has months and months of late payments and has also been closed for future purchases for 2 years.
I called AMEX yesterday explaining that this is not my personal credit card, and it is hurting my chance in obtaining a Mortgage, and they said there is nothing they can do until the $4000 is paid off entirely.
I apologise for this being so long, but I have multiple issues here and my head is spinning trying to figure out how to make this right. Especially since our closing is in less than 30 days and we don't want to lose the house.
Since these issues are explainable, and it's obvious my credit took a hit from the Divorce in 2013, does obtaining a Mortgage seem possible for us? My wife has great credit, but obviously they are going to go by my middle score at 609.
Any help or insight would be GREATLY appreciated.
