My wife and I are planning on buying a house next year. Our credit is rebuilding, but our gains in the last 2 years are encouraging (410-599 in 18 months for me)
One of the pillars of the plan was to wait for some of my old CC debt from first marriage that was charged off to hit the 7 year mark and be excluded from the score.
After lots of reading on the forums though it sounds like if the loan is for more than 150k, which it likely will be, a manual review will happen and the underwriters may very well ask that we pay those old debts which are about 8k altogether.
My question is, has this happened to anyone, or can anyone speak to the frequency of this? If all goes according to plan they will be the only unpaid debts from my dubious past, and history since I got back on my feet has been stellar.
Should I be worried?
