rebuilding strategy - does this make sense?

[Anonymous]

Hi all,

Please tell me if this makes sense. I am repairing both my and DH's credit. I"ve done the first round of pre-HIPAAs, GWs and DVs. A few accounts just disappeared, which was great, some are taking a little more time, but I'm hopeful. My scores went up enough that I could apply for a couple of CCs, because I had none. I do have a mortgage that reported late for a year up until June. Now it's current and has been reporting current. I figured that it will be very difficult to GW the loan servicer into dropping any of those lates for a bit because I am just not looking so good on paper. So when my scores went up enough, I got 2 rebuilder cards, Orchard and Credit One, and after I got them I was also offered a BoA secured card, which I may still do, rather than the Credit One. The first CC brought my scores up, but the second lowered them - not to where they were to start with, but it was a slight hit, and a little discouraging.

My thought was that even if I get every collection off, (which looks likely) I'll still have that ugly mortgage. So as that ages, I will also have these cards reporting positively. I'll close the Credit One eventually, since their fees are high, but it gives me something to build on while the lates age and the rest of the collections drop. And the new credit hit I take will be while my credit already sucks.

I hope I didn't do the wrong thing here....

[Anonymous]

I think that if you have the opportunity to have a BofA secured credit card, go for it, even if it's for $300. 

Regarding your mortgage, you have nothing to lose if you send them GW letters now.  I've read numerous posts on this forum that mention that they've sent tons of letters for GW in order to make a dent.  I would figure that it wouldn't hurt to send them letters now and if they don't respond, keep doing it every month. 

Good luck to you!

[Anonymous]

Keep doing everything and the most noted above.  Be sure to keep a log and copies of your letters.

It can help you if at some point you seek Federal assistance.

Those who put in an effort to help themselves will be in a better position.

You see, if your lender failed to respond or acknowledge your letters or help you, whose fault is it ?

Do NOT take all the past posts to heart in terms of your actions.

Only you are responsible for your actions and Past Performance is no Indication of future success.

Cheers

[Anonymous]

It can help you if at some point you seek Federal assistance.

Those who put in an effort to help themselves will be in a better position.

You see, if your lender failed to respond or acknowledge your letters or help you, whose fault is it ?

---

Thanks for the encouragement. It's so nice when the scores go up, but getting one of those letters that says "Tough luck!" can ruin my day...

When you say get Federal assistance, what do you mean? My mortgage is now all caught up, which makes me happy, but they have no incentive to make me look better. I pay a high interest, have lots of equity in the house. I don't think they'd rather have me refinance.

I sent a long GW letter to the lender, and they were very responsive - asked me to send my credit report so they could consider what was going on, but I got the usual kind of "we must report accurately" letter back. I had some hope because they WERE responsive. Who knows... maybe they will change it anyway at the end of the month, one of my other GW letters was like that, but either way, I'll keep writing them.

Not sure what else I can do but wait while everyone deliberates and investigates!! I hate that!

[Anonymous]

There will be Federal Assistance and you never know if something happens you will need it as anyone else.  Just keep everything logged which can build your case.

As things are, yes any credit card will help as this point.  Just be sure to study the fees.  They can all be crooks at somepoint   Once you have this card use it for everything you can (that you really need) and pay it twice a month.  This is good for you and your credit card company knows you are doing it.  So it good for credit increase and help when you can't make a payment.

Other than this, I would keep a close watch on Interest Rates.  Somewhere down the line (0-2 years) rates will go down further, probably below 5 for a fixed. (with great credit)  You and many others will want to Refinance at this time and it also should be part of your strategy.

[Anonymous]

Do you mean that there will be Federal Assistance from the $250 billion we've just pledged to some very wealthy people so they get to keep playing their favorite game? Do you think some of it will really trickle down?

Message Edited by likewise on 10-15-2008 01:17 PM

[Anonymous]

Its actually $700B, of which $250B has been set aside to buy shares of 9 banks so far.  More to come.  It will more likely be a total of $1 and $2 Trillion for banks alone and I believe 3 is not unrealistic.

US has $5-6 trillion in cash locked in vaults around the world.  This is cash money on pallets.

We won't be touching it soon though. (its for a real emergency)  This is the largest standby reserve of any country in the world.

For now, nobody cares about national debt and immediately nobody should.  FED needs to do everything possible and impossible.

I would call this Chapter one, along with the useless credit line to AIG, who will likely go under anyhow. (broken up)

Each Candidate and Congress has non-stop talked about a mortgage bailout for normal people.

They have to deliver there. Otherwise we will make them <puff> in the next 4 years.

I think for the Fed its Chapter 2 or 3 to help individual homeowners make their situation bearable.

Maybe chapter 2 is prime rate at .5% over 6-12 months. ( its at 4.5% now)

Overall, just be prepared, ensuring you are in the best position to take advantage of things moving in your favor.

Cheers

Message Edited by uaflyer on 10-15-2008 07:30 PM

[Anonymous]

Right... I knew $700B ... probably just in denial!

I've so lost faith in my government's willingness to help regular people. I'll believe it when I see it... but from your fingers to God's screen!

Either way, I am so sick of having no financial freedom (which is not the same as lots of money) that no matter what, I am definitely taking care of this as fast as I can, and for good.