Need a mortgage

[Anonymous]

Good afernoon everybody! I am looking to apply for a mortgage loan in about 6-9 months and need some advice. I had some credit issues back in 2009 with charge-offs, defaults, etc., because of the economy and work related issues, but Im now making roughly 95K a year at this point. No negative reporting since 2009. I have 3 secured credit cards that have balances around $400 and are reporting monthly. Bad news is that left over from 2009 are a Cap One card with a balance of $1155.00 and two private student loans of 40K and 27K. All have been charged off but still show balances which I think is killing my CS. All three are way past the SOL in my state and are due to fall off Feb and March 2016. Currently paying $2500 a month in rent and looking for a house with taxes, insurance and HOA that would run around $2100. I have two other Fed student loans but with those payments my DTI is below 5%. Any help would be greatly appreciated!!

[Anonymous]

Look into rehabbing the SL.

If the Cap One card has gone to a CA, try to negotiate a PFD. If it hasn't try to settle with Cap One, to get it off your UTI. Then try to GW it off.

[Anonymous]

Thx for the reply NormanFH but I definitley dont want to rehab 60K of high interest private SLs since they are <12 months from falling off my CR. I tried to work out something with them before I even knew about the SOL but they werent willing. I mainly wanted to see if these three items would kill my mortgage chances. Hoping that the age of these and the lack of anything negative for the last 5 yrs would help my chances.

[gdale6]

Even though they become excluded at most 7.5 yrs from the DoFD, if the mortgage broker runs a full factual report they most likely will be seen, they wont show on a regular pull but do on a full factual, the items typically are purged from your file like good accounts are near the 10 year mark. You dont want to app for a mortgage until these actually drop from your reports, you would be required to settle them prior to close.

[js0319]

The Cap1 issue is easy - pay it as most lenders will require it be paid. As far as the private student loans - you'll need to see what you can do to fix that. You can't rehab private student loans, only public, government backed loans. Can you contact the lender for the loans and work something out so you can get back in track? Don't do anything that resets your CRTP. 

[gdale6]

---

@js0319 wrote:

The Cap1 issue is easy - pay it as most lenders will require it be paid. As far as the private student loans - you'll need to see what you can do to fix that. You can't rehab private student loans, only public, government backed loans. Can you contact the lender for the loans and work something out so you can get back in track? Don't do anything that resets your CRTP. 

---

Once an account reaches CO status there is nothing that resets the CRTP, it is always fixed from the DoFD that lead to the CO.