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HELOC charged off. Can I get a mortgage in a couple years?

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danb474 Joined: 16 Oct 2010 Posts: 2 1.58 Dollars($)	Posted: Sat Oct 16, 2010 2:10 pm    Post subject: HELOC charged off. Can I get a mortgage in a couple years? Like 0 Dislike 0 I live in CA. I'm in the midst of getting my divorce finalized. During the divorce, I moved out and had to pay rent and child/spousal support. My ex did not pay the 1st or 2nd mortgage, and moved to a rental leaving the house vacant. The house sold in a short sale. My Wells Fargo HELOC charged off (~ $16,000 balance). This HELOC is not purchase money, and therefor is not a non-recourse loan. I spoke to Wells Fargo, and they said the law does not allow them to come after me for the deficiency. I was told, however, that even though they won't pursue it, I will still show the outstanding balance. Paying tons in support to my ex and my own rent payments doesn't leave me any extra $. In a couple years, with alimony nearing an end, I'd like to try and buy another home. I was advised the charge-off would remain on my credit report for 7 years (and I believe 2 years for the short sale). Is this charge off going to prevent me from obtaining a loan?
Niicss Joined: 03 Oct 2005 Posts: 4831 Location: New Jersey 508.39 Dollars($)	Posted: Mon Oct 18, 2010 2:54 am    Post subject: Like 0 Dislike 0 The charged off loan amount will be considered as a negative item and it might be a bit difficult for you to qualify for a mortgage unless you pay off the charged off account. _________________ Good is the Enemy of Great.
danb474 Joined: 16 Oct 2010 Posts: 2 1.58 Dollars($)	Posted: Mon Oct 18, 2010 9:25 pm    Post subject: Like 0 Dislike 0 Thanks for your response! If I settle for less than the amount due, will that be the same as me "paying off" the debt for purposes of obtaining a mortgage in a few years?
jerry Moderator Joined: 17 Oct 2005 Posts: 2708 Location: MICHIGAN 429.63 Dollars($)	Posted: Tue Oct 19, 2010 3:01 am    Post subject: Like 0 Dislike 0 Hi danb, If you settle your debts for a lower amount, then your credit report will mention it as "paid as settled". However, after a few years, you'll be able to obtain a mortgage to buy a property of your own. Thanks, Jerry

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