Will this work?

[Booner72]

Hi everyone.  Thanks for all the great information here. 

My situation:  We are under contract w/ a short sale, we are waiting for the seller's bank to accept our offer.  Allthewhile working with a loan officer.  She pulled my scores and the middle score was 607.  She told me to pay off a judgment and pay down revolving debt.   Both are done.  The judgment was for 2500 for medical bills and those collections are also on my credit reports.  I was told by the Creditor that they would list my balances as zero, but she would not remove them from our reports no matter what I said.  I paid down a 400.00 credit card to 50.00, as it was maxed out at 400.00 - so I'm assuming that will help some.

Now I'm worried that my credit scores will go down instead of up since the DOLA on the collections will change from 2/2010 to now.

My revolving debt is now down to less than 1/3rd.  (I know, 9% is better, will do that on payday).  Do you think my score can possibly rise 13 or 33 points?  She said she could get us a loan if I got to 620, but 640 "Would be better."  I'm buying the house in only my name bc my husband's credit is horrible bc of child support.

** Are the score simulators that the LO's use better than the score simulators around here and at FAKO sights?

She already wrote up a pre-approval letter with "conditions" 1- pay judgment 2- get money out of 401K for down payment and closing costs.  How can she give me a preapproval letter with a middle score of 607?  MYFICO score is 600 by the way (which also worries me).

Thanks!

[llecs]

If paying the collections and the judgment were conditions to closing, then there really wasn't too much of a choice anyway other than to wait. I wouldn't sweat it that much. Depends also when the collections last updated. If they regularly updated, then you wouldn't notice any change, assuming one were to happen (which may not). For the collections at the least, I would call them and bug them to get them to delete.

Paying maxed out CCs always help. There's an extra ding for maxing out a CC and you regain those points once the balance comes down. Hard telling on the score gain. How many open CCs or closed CCs with a balance do you have? From what to what did your utilization percentage go from and to?

If your lender is using a FICO-based simulator, then it would be similar to the one here.

There are some lenders out there that still use 600 for the mid score. Or maybe the lender is predicting that the score could rise if the conditions are met (not for the collections or judgment, though).