New to the forum and have a question related to buying a home. I am attempting to purchase a home and trying to get pre-approval. I was already once denied by the automated system because of high balances on a couple charge cards. I have since paid them both down to $10 each. and now we are waiting for my CRs to reflect the lower balances. I filed a ch13 in Jan 2008 and it was dismissed in 2010. Subsequent to dismissal I had 2 credit cards wrote off as bad debts and a Verizon cellphone contract listed as a charge off. The Verizon was because I cancelled a cellphone contract within 10 days because I couldn't get signal at my home, when round and round with them to no avail. They sold the alleged debt to a debt buyer. I did write the credit bureaus disputing this debt but nothing happened with my dispute. The 2 credit cards were an HSBC I owed them $469 and the other was a First Premier that I owed them around $700 on. I did owe the money. I tried to work out something with both of them. First Premier wouldn't talk to me at all and referred me to a debt buyer that had bought the debt. I tried to work out something with them but they refused to send me a letter outlining they would settle for less than I owed. They were trying to get me to settle the thing on the telephone and I was not about to give them my banking info because I knew they would try to take the fuill $700. HSBC wrote the debt off and sold it also. That company did finally send me a letter a few weeks ago offering to settle in full for 50%. I have done nothing about that because the mortgage guy I am working with said not to pay any of these debts because it would lower my scores and I am borderline right now.
So, my question is if the FHA automated scoring system rejects my application and their UW will not do a manual, what should I do? I have been paying all my bills on time for the past 24 months and have an open Chase car loan, an open consumer finance account with Spring Leaf (both of them are 6 months old) and the 2 new credit cards with Cap One and Credit one that are both aged 13 months. Subsequent to the Chase loan I paid off a 3 year note with Westlake Financial on my previous auto with no lates. I am trying to do the right things and turn things around and I am still getting bashed because of my past.
The entire reason I got behind was because of being forced to take an early retirement due to medical issues from a not at fault auto accident and fighting Social Security to get my disability. I am past all that now.
I will hear back from my mortgage guy on May 5 after he repulls my CRs and runs me through the automated scoring system for FHA.
