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Ok, so I have been repairing my credit for the past two years and working on increasing my income...getting prepared financially and everything I can think of. My spouse and I are now feel ready to take the leap and want to apply for a mortgage in TWO months! His credit is perfect, he has scores in the ranging from 650-670 with absolutely no debt other than two student loans that are deferred and one credit card. Now myself on the other hand had 12 collection accounts, multiple student loans, and medical bills on my credit. I have managed to now bring my scores up to the 640 ranges but, I still have six collection accounts that I am unsure on what to do with.....
I have two collection accounts that equal 1100 that I have not paid due to the me not being responsible for them and I won a settlement in court for another person to pay the accounts instead of me which the courts are not garnishing his pay for and was found not liable and now I am working to have them removed as the courts work to have the other party pay them. I was unsure if that would cause me to not be able to get approved or not since they are still there but, I have documentation to show. The other collection is for 1400 for a previous school that I am disputing since I never went to the college.
The other two are collections that I actually owe 490 collection for auto insurance and two older accounts for college tution that were reported to MD central collections that equal 1900 total which I was going to set up payment arrangements for but, was unsure if I had to pay off in full? My question is what do I do with each to get approval or do I need to not do anything at all.
Our income: 4300 monthly
Debts: 200 monthly combined
Welcome to the forum - You are close - very close - hopefully the credit is clean the last year or two??
Each bank has their own guideline on collections - most will not be concerned with the medical
You should be able to show court documents on the one
it is the rest that are where you need to focus your efforts - if you can work out a pay for delete on the smaller one I would do that - it should boost your scores as well as make you a stronger candidate for a mortgage.
Continue fighting the school over the 1400 since you didnt go there hopefully that will go away and again bump your score
If you can get the insurance and that school removed the 1900 shouldnt be as big an issue since it is all that is left - - be prepared to pay it but wait for an underwriter to tell you it is required
Oh ok, thats great advice thank you! I can definetly get the school removed and the insurance agreed to a pay for delete. So, I will follow your advice and focus on those things. Whew what a relief that I do have a chance. Yes, for the past year everything has been paid on time such as my credit cards and student loans.