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Repairing Credit for First Time Home Buyer Couple

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itsliterallymejoef
New Visitor

Repairing Credit for First Time Home Buyer Couple

Hello,
This is my first ever post here so I apologize in advance if this is the incorrect posting forum. My wife and I are currently fixing our credit from a couple years ago so this may be a long post. I had lost my job and she had a few problems pop up as well, needless to say our credit took a hit and we both have had a handful of charge offs and collections. We recently lost our family owned rental house due to Hurricane Ian last year and are currently with her mom living almost completely free of charge. We have been able to pay off our collections accounts in the last year and get some stuff removed from our reports. She now has a high enough median mortgage FICO score to qualify for a mortgage. I do not but am getting close. I have one collection account that was $97 that I didnt even know I had owed that I ended up paying. All lenders except Experian removed it, called the collection agency, said they have a company policy that they will not remove even paid accounts from collections. Its the only collection I have left, shows as paid, but I know it still has to be hurting me in some way just it being on there. 

I also have a Discover account from years back that I had defaulted on but recently received a 1099c debt forgiveness letter. I was able to get Transunion to at least report as a $0 balance but the other two agencies wont touch it. I have disputed many times for this account as well as other charge off discrepencies but now these charged off accounts are currently reporting and I'm getting late payment dings. I have disputed things so many time that actually need to be changed and/ or removed from my credit and it just makes it worse. I have no idea how to go about fixing these issues. I would greatly appreciate any insight as to what I can do to clean this mess up so we can finally start applying for a mortgage.

Thank you in advance!

2 REPLIES 2
ShanetheMortgageMan
Super Contributor

Re: Repairing Credit for First Time Home Buyer Couple

I'm sure the collection account isn't helping, but if it's from a while ago it might not be hurting too much.  A loan officer can run a "What if" simulator to determine the likely score increase you could get from it being removed.  When did the collection account occur and when did you pay it off?

 

Is the Discover account being reported as a charge-off on your credit?

 

What are your mortgage credit scores now?

 

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Message 2 of 3
chijo
Established Member

Re: Repairing Credit for First Time Home Buyer Couple

My credit scores had been close to 800 for most of my adult life. After challenging some crooked banksters my score dropped to the very low 600s. TIME. TIME.TIME. That is what cures your ailments better than anything. Be patient and let those things roll off. Every time you bring certain things to their attention things will be jarred into being again that may harm your score. It is not a fair system and best believe they own it. Credit repair people can actually mess things up more. Stop all communication that has not worked for you and do not agree to payments at this point. Go very quiet even if they offer you a payment plan. From a foreclosure in 2019 to now my score is once again within a few points of 800 on all three main credit systems. When that last collection dropped off with BOA being nasty and reporting every month for years the scores jumped up over 100 points in one jump. During that time of waiting I opened two credit union accounts, NFCU and Alliant and a local bank account and have three credit cards paid off every month. Started with secured and am now asking Navy for $5,000 more each time my chance rolls around. So far they have granted it because I have not been greedy and bugging them every month about it. TIME...did I say time heals all? For free. Patience Grasshoppers! They own the system. And this board rocks with some very intelligent perople. Take advantage of their generosity and their brains!


Message 3 of 3
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