09-14-2012 04:13 PM
We had to move out of state over a year ago. Within a month, we had a contract on our house. Bank of America would not process short sale without a default to show hardship. They take a very long time to approve short sales. I am now over 1 year in default, but the house is finally going to close. I am not on the mortgage note, just on the HELOC. The balance is $150k. Bank of America holds both the mortgage and the HELOC and we have short sale letters for both loans. They are paying off the HELOC at $6,000. I'm pretty sure that this is going to show as a charge off. I have a long and excellent credit record, except for this. Will my score improve or will the charge off look worse?
09-14-2012 08:31 PM
Your score will go down. If this you only derog I would guess somewhre in the neighbor hood 100 points or so. The socre took hit when the loan first became late.
09-14-2012 10:04 PM
Well, 100 point drop to 550 would totally suck. Right now, my credit limits on cards are $16,500 $14,500 $6,700 for my major Visa and MasterCard. Discover dropped me from $9,000 to $3,500. The cards mentioned earlier used to have $30k credit limits. Everytime they cut my credit line, my score goes down.
I would like to buy a home again sometime. I guess I'll have to wait a few years, now.
10-22-2012 08:47 AM
Well, we closed and Bank of America charged off the HELOC. My credit score went from 652 to 717. My biggest debts are my student loans at over 100k. But, my credit card debt is still at 40%. Once I pay that down, I should be good to go. Just need to get it up a little more by the time my lease is up in another 18 months so I can buy a house again.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.