A Question??

[c06u]

This is puzzling to me...how is it if you struggle through a hard time and try to pay your credit card bills even though late and always pay your mortgage on time , you are penalized in the way of a lower credit score for a longer period of time that the person that files BK or goes through a foreclosure???

These quotes are copied directly from a mortgage companies site and are current statements from them!

96.5% financing 3 years after Foreclosure on FHA loans.

96.5% financing with credit collections

96.5% financing if you are in a Chapter 13 Bankruptcy for the past year and paying on time with a minimum credit score of 640     (how do you get a 640 score???)

96.5% Financing on FHA 2 years after chapter 7 bankruptcy with credit score above 640.

So what I get out of this is rather then wait for those pesky 7 yr long 30 day late payments to drop off your CR just file a BK  walk away and Avoid the hassle?..whats going on in this country anyway

Sorry to the pros here but your industry seems like it is rapidly approaching Used Car Salesman status

[tooleman694]

30 day lates have pretty much zero impact on your score after 2 years.

[lagb]

I agree!  I struggle to make sure my bills are paid on time.  Got into some trouble with my mortgage due to a cutback in my hours, and low and behold, I can't get ANY decent credit from anyone.  I work hard to get my bills paid and when I was behind, I made all the right arrangements to get caught up and stay caught up.  Yet, we get kicked in the backside every time we turn around.  Either denials or high interest rates...

A relative of mine walked away from TWO mortgages, the latest was 4 years ago... and yet, he got another mortgage this year!  How does that happen??  I know what people are gonna say... it was 4 years ago, so it's not "relevant" because most banks look at the last 24 months....  but seriously!  There is something wrong with that! 

Why can't creditors look at my report, see that yes I got into some trouble, but I fixed it and have been really good for the last 12 months...  so aggravating...

[DallasLoanGuy]

i've closed deals qith 30 days lates less than 3 months old.

you arent comparing apples to apples

[c06u]

I wish?   Have about 5 of them left, (30 Days +) one collection that is timed out on SOL and should drop off this summer, $0 debt $0 house payment,own my home outright, no BK ever no foreclosures no late mortgage payment is 35 years  and I have a whopping 590 FICO  sooo go figure am now fighting to try a get a mortgage with a 50% downpayment ($100,000 cash down ) so something is not aligned here

[c06u]

Here is the mentality we seem to be dealing with, I found this on another Mortgage/credit advise site, So who knows is this right or wrong?

 "Without the bankruptcy, late and missed payments will mark you a credit risk. Very few lenders will extend you credit. And those that do will offer even worse terms than if you filed bankruptcy."

[JM-AM]

While things arent perfect and they never will be I know you can improve your scores. I have seen it done and there is plenty of information on these boards to assist you.

Comparing Bk and foreclosure is not a comparison for the simple reason their scores would still have to qualify. So using your situation even if you had a BK or Foreclosure you would still not qualify since your scores would hold you back.

[tooleman694]

Sounds like you have a thin file, how many CC do you have.

Remember having zero debt isnt gonna help your credit scores. You are scored on how you handle the debt you have. If you have no debt you will score bad.

[c06u]

You are correct about that, I have NO credit cards, have not had any in TEN years  $0 debt period and not interested in any credit cards at all, and I pay cash for my cars also, so guess will just live with 590 I guess, at least they never foreclosed on me  LOL

[tooleman694]

Time to get some credit cards and increase that score, use other peoples money for your day to day expenses.