10-11-2012 07:52 AM
I can't believe this has happened, but it has. I can only kick myself so far. Now I need to know where to go from here.
We are in a house, we are renting and have to close on it by the summer. The earlier the better. We were planning on going the FHA route, as my credit score is 655 and the 3.5% down is easier to come up with as opposed to 20%. This month is one year of no lates - there were mortgage lates last year as we were paying for two homes due to job relocation. None beyond 30 days late. We always paid our rent on time.
We switched cable providers and I tried to pay my final balance and couldn't log on. It slipped my mind. I recieved a letter from a collection agency, CPA. I paid it instantly, as they told me that it wasn't on my report yet (It was not, I have monitoring on) and I should pay it now to prevent that. Like an idiot, I listened. Anyway, I have a thread on the rebuilding credit forum to try and get this removed.
Let's say that it won't go away. My credit score is now down to a 614. I'm below 620. The collection shows to be sent to the agency in June, Equifax shows first delinquecy in April. When am I good to go FHA? Is there any way to go conventional with this on my credit? Worst case scenario I pull the 20% out of my 401K, though not ideal. Will June count as 12 months, or April, or next October (as this is when it showed up, and had a status change). I'm going to guess that my credit will bounce back over 620 by the spring or summer, and I KNOW that there's nothing else out there lingering to take it back down.
Thanks so much.