I purchased a house in November 2007 while married (loan was given based on two incomes, but loan was in my name only). In January 2009, divorce proceedings were started and that was finalized in June 2009. The house stayed with me and was put on the market - I stayed in contact with the lender to make sure they knew what was going on. After spending 2 years draining every resource I had to maintain the house while trying to sell it, I just couldn't do it anymore. I contacted the lender, and I told them I wanted to do a consented foreclosure (deed in lieu was not an option due to a joint tax lien from the state). In November 2011, I moved out of the house, and the bank took over property maintenance - but even at my insistence, nothing has started with actual paperwork for the foreclosure. I want this settled so I can start the clock on rebuilding my credit - right now every month my credit gets hit with another "late" for this mortgage. Does anyone have a recommended course of action to speed this up?
My situation has changed greatly since moving out in November - I received a 33% increase in income, and my new residence has expenses that are literally half of the home I was in. I'm trying to work at cleaning up my credit as much as I can right now, as I will need to purchase a new vehicle in the next 6-12 months. I've sent a request for Consumer Statement to be added to the mortgage tradeline, requested GW deletion for one late payment on my car loan, and also sent PFD letters to two collection agencies that are from several years ago. I have 3-5 other collections on my credit report from when I was married that I am working on getting PFD's. By the time I purchase a new vehicle, I will have a significant downpayment saved up - but my credit score is low enough that currently I would only qualify for 18% interest on that loan. And because the house is not listed as in foreclosure - that mortgage payment is still being factored in my debt/income ratio. I guess my question is - Is there any point to working so hard to get my credit cleaned up NOW with that mortgage still hitting my credit every month?
Starting Score: 577 EX 9/9/2015