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Mortgage, what are the chances for July, 2020 with CO's and CA's?

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Established Contributor

Mortgage, what are the chances for July, 2020 with CO's and CA's?

Our credit was destroyed in 2013 and 2014 due to the fraud of a commercial landlord and our blind trust in him.  Long story.

 

We have been renting from my Sister for 5 years and have an option to purchase but would have to do so by next July or August.  This is a townhome that we have been rehabbing.  Sale price will be around $135K, (what they owe) value is close to $185K +/-.  We will have $40K in escrow for a downpayment but could scrape up more.   Combined income from our LLC (payroll) will be $75k next year.  We have been taking much less for years and live very frugally... used beater cars, no trips etc..

 

Credit me:  8 CO's and 3 CA's, all out of SOL and due to come off reports Spring of 2021.  

Credit DW:  3 CO's, 3 CA's same time frame as above.

 

Scores Today Me:  FICO Mortgage 570 - 590  FICO08's 626-650

Scores Today DW:  FICO Mortgage 650-665  FICO08's 629-639

We were both at a FICO09 of 400 16 months ago and have perfect credit history during last 36 months.

 

Our scores will be higher then but many of the above derogs will remain.   We will not be paying off CO's and CA's and please don't lecture.  I would rather get a 1-2 year ARM or short term loan or take a loan repayment from our company and purchase the townhouse with cash. (we emptied all savings and investments trying to stay afloat and pay debt until that ran out and are owed $200k or so.)

 

Where might we look?  Not sure a CU is an option.  We have NFCU and run 800k per year through them with our LLC.  Loan shark?  

 

Any thoughts appreciated. TY


Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = Very Low 400's
8-1-18 -
12-24-18 -
11-1-19 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, FuelMan .8K, Citi Tractor Supply Rev .8k, Builder Pro 5.4K, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG
6 REPLIES 6
Valued Contributor

Re: Mortgage, what are the chances for July, 2020 with CO's and CA's?

$40,000 in Escrow? Please explain? And does sister have the same last name as you?
If the $40,000 is actual cash in a bank acct or held by the Escrow Company please verify.
Next list each collection and other bad items individually so we can see the creditors names and size of issues involved.
We really want to help but need fuller info.
Message 2 of 7
Established Contributor

Re: Mortgage, what are the chances for July, 2020 with CO's and CA's?

I used the term "escrow" loosely I guess.  We have an agreement and a shared bank acct at a local CU where we have been depositing funds.  It will have $40k in it by Spring.  She does not have the same last name.

 

As for derogs, we likely should have declared BK.  Several accounts were paid off and report with xero lates after selling our above water "nice" cars, buying beaters and trying to remain solvent back in early 2014.  We never had a late until the event that began our downfall.  Our company took off in 2016 and is now more than a little mom and pop.  Perfect biz credit though that doesn't matter but do have business banking we could move from NFCU to a CU that held their own mortgages if that still happens.  We could also likely cure what was a long and perfect relationship with BCU. 

 

Here are my derogs.   DW's are not quite as severe.

Charge Offs

 

Alliant - Out of SOL No Collection Reporting

Status:  Closed – C/O

Balance: $4,597.00

DOFD: 5-2014

Baxter CU - Within SOL No Collection Reporting

Status:  Closed – C/O

Balance: $10,072.00

Credit Limit: $10,000.00

DOFD: 9-2014 

Capital One – Out of SOL, No Collection Reporting 

Status:  Closed – C/O

Balance: $10,072.00

Credit Limit: $10,000.00

DOFD: 5-2014

MACYS / DSNB – Out of SOL, No Collection Reporting

Status:  Closed – C/O

Balance: $518.00

Credit Limit: $400.00

DOFD: 5-2014

__________________

 

Peoples Trust CU – Out of SOL, No Collection Reporting

Status:  Closed – C/O

Balance: $1,803.00

Balance Updated: 8-2019

Credit Limit: $1,100.00

DOFD: 5-2014

 

PNC Bank  – Out of SOL, No Collection Reporting

Account:  CC

Balance: $0

Credit Limit: $2,800.00

DOFD: 6-2014

 

SYNCB / LOWES – Out of SOL, Sold - Midland Collection Reporting 

Original Creditor:  GEBank

Balance: $0

Credit Limit: $6,030.00

Comments:  Sold to Midland

DOFD: 5-2014

 

 SYNCB / SAMS – Out of SOL, SOLD -  Midland Collection Reporting

Updated: 8-2015

Balance: $0

Balance Updated: 8-2015

Credit Limit: $10,000.00

Comments:  Sold to Midland

DOFD: 4-2014

 

TDBANK / TARGETCRED – Out of SOL, No Collection Reporting

Updated: 12-2014

Balance: $812.00

Credit Limit: $600.00

DOFD: 6-2014

 

USAA SAVINGS BANK  – Out of SOL, No Collection Reporting

Balance: $16,008.00

Credit Limit: $1,500.00

Past Due Amount: $16,008 

DOFD: 6-2014

 

Collections 

 

CREDIT MANAGEMENT  -  Status:  Comcast marked account paid after DW showed receipt for returned equip last week.   This may shortly report as paid.

OC: Comcast Cable

Open Date: 2-2017

Open Balance: $306.00

 

MIDLAND FUNDING  -  Status: Received flurry of letters and calls months prior to SOL expiration, then they went away.

OC: LOWES

Open Date: 11-2015

Open Balance: $7,039.00

 

MIDLAND FUNDING  -  Status: Received flurry of letters and calls months prior to SOL expiration, then they went away.

OC: SAMS CLUB

Open Date: 7-2015

Open Balance: $11,047.00

 

OAC  -  Status:  Never received bill or Dunning as far as I know.  They did bill insurance and am following up on that. -  Reported on TU only.

OC: Local Radiologist 

Date of Service:  5-2014

Open Date: 1-2015

Open Balance: $537.00

 


Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = Very Low 400's
8-1-18 -
12-24-18 -
11-1-19 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, FuelMan .8K, Citi Tractor Supply Rev .8k, Builder Pro 5.4K, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG
Message 3 of 7
Regular Contributor

Re: Mortgage, what are the chances for July, 2020 with CO's and CA's?

Based on your scenario ( even including your current credit scores)  - you have older derogs, you have a large down payment - plus since sister is selling you a 185k home for 135k you have a major $50k gift of equity on top of a larger down payment.. You would most likely be approved for an FHA loan in your current position. Recently accomplished a 540 score borrower FHA purchase. They had to put 10% down - worked like a charm! It appears that you're in a MUCH better position than they were.  

Message 4 of 7
Established Contributor

Re: Mortgage, what are the chances for July, 2020 with CO's and CA's?

Thank you.  That is reassuring.  Could that theoretical mortgage be refinanced in a year or two?  We will be in high 700's by then at least.   

 

I guess LTV of about 60% helps? 


Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = Very Low 400's
8-1-18 -
12-24-18 -
11-1-19 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, FuelMan .8K, Citi Tractor Supply Rev .8k, Builder Pro 5.4K, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG
Message 5 of 7
Regular Contributor

Re: Mortgage, what are the chances for July, 2020 with CO's and CA's?

For sure

Message 6 of 7
Established Contributor

Re: Mortgage, what are the chances for July, 2020 with CO's and CA's?


@Mortgage-Specialist wrote:

For sure


Skin in the game matters.  It would be a studid move on our part not to move forward with this.


Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = Very Low 400's
8-1-18 -
12-24-18 -
11-1-19 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, FuelMan .8K, Citi Tractor Supply Rev .8k, Builder Pro 5.4K, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG
Message 7 of 7
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