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Worth it to pay this collections?

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Anonymous
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Re: Worth it to pay this collections?

Matt.

It's nice that her dad is offering to cosign for the house, but what happens if something goes wrong with the relationship? What happens to the financial investment you've made in the home then? We all hope for forever after, but we also need to think with our head, and not our,hearts, sometime. Credit rebuilding itself is a relationship that you make with yourself. My BF and myself are planning on buying a home next summer and his credit is over 700 and I've been working on mine and by next summer it should be there, but I've had to take care of some collections and now I'm waiting for them to fall off, plus some lates, and one charge off. Plus I'm finishing grad school. Sometimes you have to play the long game. Instant gratification isn't all that it is cracked up to be. We respect whatever decision you make, but we would like you to evaluate all your options before proceeding.
Message 51 of 54
Anonymous
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Re: Worth it to pay this collections?

At the end of the day this is going to be her Dad's home. For us it's just a starter home while we get on our feet. We'll live here maybe 2-3 years and my fiancé and I will be making the monthly payments in exchange for living here. About $900 (including a $216 association fee Smiley Sad ) a month so for us it's better than an apartment. I understand that people break up but we aren't breaking up especially because we love each other AND have an 8 month old son together.

Initially we were going to buy the home but the homes we want are out of our price range until we get better paying jobs and likely after I finish law school in about 3 years. Then we'll be in a better financial situation and have much better Credit hopefully. But in the meantime we absolutely don't mind making the monthly home payments it definitely makes the most sense for us right now. And whenever we do move out her Dad is going to rent it out.

Sorry if that wasn't clearer earlier it's just a lot to write and explain. And congrats with grad school!
Message 52 of 54
Anonymous
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Re: Worth it to pay this collections?


@Anonymous wrote:
At the end of the day this is going to be her Dad's home. For us it's just a starter home while we get on our feet. We'll live here maybe 2-3 years and my fiancé and I will be making the monthly payments in exchange for living here. About $900 (including a $216 association fee Smiley Sad ) a month so for us it's better than an apartment. I understand that people break up but we aren't breaking up especially because we love each other AND have an 8 month old son together.

Initially we were going to buy the home but the homes we want are out of our price range until we get better paying jobs and likely after I finish law school in about 3 years. Then we'll be in a better financial situation and have much better Credit hopefully. But in the meantime we absolutely don't mind making the monthly home payments it definitely makes the most sense for us right now. And whenever we do move out her Dad is going to rent it out.

Sorry if that wasn't clearer earlier it's just a lot to write and explain. And congrats with grad school!

I'm glad that you're going into this with your eyes wide open.  When y'all are ready to buy a home of  your own, will her dad refinance the home to get her name off the mortgage?  The DTI ratio will affect her at that time.  Congrats on the law school thing.  It's important to do whatever is necessary to be able to make more money, and congrats on your son.  I have a daughter myself in middle school.  Good luck.Smiley Wink

Message 53 of 54
Anonymous
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Re: Worth it to pay this collections?

He probably will do that sometime in the next 5 years he locked in at 3.5% for the time being. The main reasons my SO is on it is to build credit mix (she has no loan experience in her CR) and for the tax benefits. Her Dad already owns two homes so I guess he's maxed on the tax benefits.

Thanks I figure no matter where the economy is everyone relies on lawyers 😉
Message 54 of 54
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