Need Advice

[Anonymous]

Hello,

i have been working on my credit myself for the past twelve months. I recently sold my house back in May and the proceeds will be split with my spouse. There were some judgements on the property that didn't show up on my credit report so my accountant is working with the City of Pa on asettlement offer. Once this happens I will have money for a down payment on a house.

There are a few things to resolve that I need advice on to hopefully resolve so my scores climb above 640 to qualify.

1. I have an installment loan on my truck that has been on time for the past 16 months and no lates.

2. I have three visa credit cards for the past 6 months with no lates and my utilization is always around 7%.

2. My spouse resided in the property for the past two years and she was late on the mortgage 6 or 7 times, 30 day lates. I spoke to the EO with Wells Fargo and that will not budge. I sent a couple of goodwill letters and they just won't remove the lates.

3. I had three state tax liens that I paid and they are released. They won't come off my credit report for another 6 years.

4. I had 4 capital one accounts and there all paid and closed. One of them was a charge off with 30 lates for 10-12 months strait last year. I tried to goodwill this account and spoke to the EO with no luck. Also had a Chase credit card that was a CO that I set up payment arrangements and paid it off. However they will not remove the latenesses even though I was on a payment arrangement plan. Spoke to the EO and again they just won't remove the lates. good will letters sent a couple of times.

5. I had two vehicles several years back with GM and Ally Financial. There were lates with them and they will not remove the lates either.

i just don't know what else to do at this point. I want to be ready for a new house as soon as receive my money. Hopefully in a couple of months. My Fico 08 scores are respectively at an average 620. I pulled a report today with myfico and the mortgage scores a lower than fico 08.

[Anonymous]

Any advice would be appreciated.

[tufa4311]

Your only option is to keep trying. There are 2 scenarios here: you have lates and CO's or your report or you don't. Currently you have lates/CO's on your report thus you need to remove them, the only way to remove them is to have the OC (or whomever owns it now) to remove them so you need to ask and keep asking. That is the only way.

Use different mediums; letters, emails, phone calls, jumping up and down holding one of your ears, whatever. It doesn't take much effort to ask/email/mail/call and the return on that investment wiil yield untold dividends.

[Anonymous]

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@tufa4311 wrote:

Your only option is to keep trying. There are 2 scenarios here: you have lates and CO's or your report or you don't. Currently you have lates/CO's on your report thus you need to remove them, the only way to remove them is to have the OC (or whomever owns it now) to remove them so you need to ask and keep asking. That is the only way.

Use different mediums; letters, emails, phone calls, jumping up and down holding one of your ears, whatever. It doesn't take much effort to ask/email/mail/call and the return on that investment wiil yield untold dividends.

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Yeah, with so many recent lates, its really going to be tough to rehab your scores quickly without getting those removed. Getting a few more revolving accounts might help, as its best to have more positive accounts than negative accounts. Whether that boost would counter AAoA effect of new accounts is anyone geuss. Without getting items removed I would not expect scores to rebound much in less than a year.

[morgacj2004]

I would think that the State Tax Liens and charge offs would have a greater impact on your score than the late pays. I have been told that late pays older than 2 yrs have a minimal impact on scoring. I was in a similar situation years ago and was able to get most of my negatives removed by directly corresponding with the OC and CRA. It definitely takes time and persistence esp if you are doing so on your own. Good luck.

[StartingOver10]

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@Anonymous wrote:

Hello,

i have been working on my credit myself for the past twelve months. I recently sold my house back in May and the proceeds will be split with my spouse. There were some judgements on the property that didn't show up on my credit report so my accountant is working with the City of Pa on asettlement offer. Once this happens I will have money for a down payment on a house.

There are a few things to resolve that I need advice on to hopefully resolve so my scores climb above 640 to qualify.

1. I have an installment loan on my truck that has been on time for the past 16 months and no lates.

2. I have three visa credit cards for the past 6 months with no lates and my utilization is always around 7%.

2. My spouse resided in the property for the past two years and she was late on the mortgage 6 or 7 times, 30 day lates. I spoke to the EO with Wells Fargo and that will not budge. I sent a couple of goodwill letters and they just won't remove the lates.

3. I had three state tax liens that I paid and they are released. They won't come off my credit report for another 6 years.

4. I had 4 capital one accounts and there all paid and closed. One of them was a charge off with 30 lates for 10-12 months strait last year. I tried to goodwill this account and spoke to the EO with no luck. Also had a Chase credit card that was a CO that I set up payment arrangements and paid it off. However they will not remove the latenesses even though I was on a payment arrangement plan. Spoke to the EO and again they just won't remove the lates. good will letters sent a couple of times.

5. I had two vehicles several years back with GM and Ally Financial. There were lates with them and they will not remove the lates either.

i just don't know what else to do at this point. I want to be ready for a new house as soon as receive my money. Hopefully in a couple of months. My Fico 08 scores are respectively at an average 620. I pulled a report today with myfico and the mortgage scores a lower than fico 08.

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^^^Just a point to reference the highlighted above:  mortgage lenders use mortgage scores, not FICO 08 scores.

The scores are NOT averaged.  The minimum mid-score for many lenders is 620.  That means all three of your mortgage scores will be pulled and the middle (mid) score is the one that is used for mortgage qualifying purposes.  If you are FHA then the interest rate is not score sensitive. If you are trying for a conventional loan, then yes, the interest rate and PMI are score sensitive.

If you can get your score to a minium 620 for the mid score, and you have extra down payment available, it may be considered a compensating factor. In fact, if you can put down 10% or more of your purchase price for the new mortgage, you get too bonuses: 

1. It will be considered a compensating factor and may overcome your late payment derogs shown last year especially if you have a Property Settlement Agreement (PSA) to show to the u/w that your ex-wife was residing in the house and responsible for the mortgage payment.
2. Your MIP will drop off after 11 years on a FHA loan if you have put down more than 10% on the purchase. Otherwise MIP stays for the life of the loan. This could save you thousands over the remaining years. Something to consider.

[Anonymous]

Thanks for the responses and suggestions. I also wanted to share that my DTI is very good given The only debt I have is the car loan with a balance of $9,733. My income is very good so that is a problem.

[Anonymous]

I spoke to a lender but he suggest to pull my credit. I really dont want to do another hard pull until i grt my money from the p f oceeds from the recent sale of my property.

[StartingOver10]

You can pull your own mortgage scores here by getting the 3 bureau report.  It is a soft pull and not a hard pull.

You can show those scores to the mortgage person (they are the same scores lenders pull) so he can speak to you based on your actual score. Naturally you would have to have your reports/scores pulled by the lender when it is time to make actual mortgage application.

[Anonymous]

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@Anonymous wrote:

Hello,

i have been working on my credit myself for the past twelve months. I recently sold my house back in May and the proceeds will be split with my spouse. There were some judgements on the property that didn't show up on my credit report so my accountant is working with the City of Pa on asettlement offer. Once this happens I will have money for a down payment on a house.

There are a few things to resolve that I need advice on to hopefully resolve so my scores climb above 640 to qualify.

1. I have an installment loan on my truck that has been on time for the past 16 months and no lates.

2. I have three visa credit cards for the past 6 months with no lates and my utilization is always around 7%.

2. My spouse resided in the property for the past two years and she was late on the mortgage 6 or 7 times, 30 day lates. I spoke to the EO with Wells Fargo and that will not budge. I sent a couple of goodwill letters and they just won't remove the lates.

3. I had three state tax liens that I paid and they are released. They won't come off my credit report for another 6 years.

4. I had 4 capital one accounts and there all paid and closed. One of them was a charge off with 30 lates for 10-12 months strait last year. I tried to goodwill this account and spoke to the EO with no luck. Also had a Chase credit card that was a CO that I set up payment arrangements and paid it off. However they will not remove the latenesses even though I was on a payment arrangement plan. Spoke to the EO and again they just won't remove the lates. good will letters sent a couple of times.

5. I had two vehicles several years back with GM and Ally Financial. There were lates with them and they will not remove the lates either.

i just don't know what else to do at this point. I want to be ready for a new house as soon as receive my money. Hopefully in a couple of months. My Fico 08 scores are respectively at an average 620. I pulled a report today with myfico and the mortgage scores a lower than fico 08.

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Forgive me for the personal question, but are you and your spouse divorcing?