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vanmower · Joined: 28 Apr 2011 Posts: 4 2.32 Dollars($)

I really hope there is someone here who can help.

We have our house FSBO (located in AL)

A dear friend of mine wants to buy it (she's in MI) and has recently divorced. She is a cancer survivor with 6 children; has great income and a cash down payment.

Her ex was paid by the health insurance company for some medical bills but he never paid them. Her secondary insurance won't pay until the primary payment has been made. He signed a notarized statement admitting that he cashed the checks but the hospital will not remove the bills from her credit report. They say if the insured doesn't pay the bills, they put the balance on the credit report of the patient.

Anyway, she has good credit otherwise, 3 open credit cards, a new auto loan and all in very good standing. However, she also has $20k + in medicals on her credit report.

Buyers are few and far between right now and you would think with her cash down payment she could get financed somewhere, by someone. She is willing to pay higher interest, PMI, whatever she needs to in order to just get someone to give her a chance to prove she will make the monthly payments.

The appraised value of our house is $260k, asking price is $189k and she has $20k in cash (not easy to save with 6 children).

Does anyone know of any lender that will help her buy our house? We have already found a house to purchase but we can't do so until we sell this one.

Thank you for any suggestions and your time.

smithsussane · Posted: Thu Apr 28, 2011 11:28 pm Post subject:

Hi vanmower!

Welcome to forums!

Your haven't mentioned your friend's credit score. Your friend will have to contact the local lenders in order to get pre-approved for a loan to buy a home. However, she should have a credit score of at least 700 in order to get a conventional loan.

Feel free to ask if you've further queries.

Sussane

vanmower · Joined: 28 Apr 2011 Posts: 4 2.32 Dollars($)

Thanks for the information. I had no idea that a 700 credit score was required for a loan.

Hers is 562 right now but it's all medical bills. She can't pay those and have money left for a down payment; she doesn't owe them anyway.

I appreciate your time and we will keep looking.

adonis · Posted: Mon May 02, 2011 12:01 am Post subject:

Welcome vanmower,

If she has medical bills in her name, then she will either have to dispute it and get rid of them or pay them off. This will help her in improving her credit score and then she will be able to qualify for a mortgage.

vanmower · Joined: 28 Apr 2011 Posts: 4 2.32 Dollars($)

She doesn't have a lot of time to wait on disputes & credit bureaus to update. Since her exhusband hasn't paid their current mortgage, they are already in foreclosure and about to be removed from the home. That mortgage doesn't have her name on it anywhere.
The broker has told her to gather any & all documentation showing that she was not held responsible for those bills. She met with her attorney and they have a meeting with the judge who ordered her divorce to see if they can get a copy of the court order where he was responsible for the bills. He said that he has a credit vendor who will look at the documents, verify the information & possibly remove the debts from her credit report!!! (IF they can be removed, there is a fee per trade; per report.)
My other question is that he says once they are removed, the broker seems to be sure her score will improve. I am curious as to how much it will improve. She paid her credit card balances off & then charged a small amount on them & paid it off again the end of last month. The negative info will be gone but how much does that help the score?

Guest

It's difficult to let you know how much the credit score will improve. However, it is true that if she pays off the debt, with time her score will improve.

vanmower · Joined: 28 Apr 2011 Posts: 4 2.32 Dollars($)

I feel like I'm talking to a wall sometimes.

She's not PAYING the debts, they have been court ordered to be removed from her credit report. The vendor is doing that now and rescoring her immediately.

Just with some changes in the past 3 weeks, she has raised her score to 585 and qualifies for a type of FHA loan that works with 580 and above. After the medical bills are removed, she will possibly qualify for a different loan with better rates.

Thanks to all who tried to help.

jameshogg · Posted: Tue May 03, 2011 11:47 pm Post subject:

Hi vanmower,

It is really good to note that vendor is removing the negative items from her credit report and also re-scoring her immediately.

Thanks

JCDLending · Joined: 05 May 2011 Posts: 8 2.24 Dollars($)

hi vanmower, i think my friend can help your friend for a mortgage loan whatever his/her credit score might be. i can connect you with him if you would like to.

Posted: Sat May 07, 2011 3:04 am Post subject:

Something doesn’t ring 100% true in her story; perhaps you don’t have all the information.

Have you ever seen an insurance carrier who pays claims to the insured rather than the vendor (hospital, doctors, etc.)? Perhaps such companies exist but I haven’t run across them.

“They” are in foreclosure but she did not sign the note? Perhaps she’d been named in the suit in order to clear title (dower interest, community property state, etc.) but it should not show as a credit line item. Again, are you getting the full story?

Judges can rule as they wish in divorce cases but I’ve yet to see one where creditors have been served and made part of the divorce action. As an “outside” party, divorce rulings have basically no effect on liability to the creditor. That’s why for large debts (mortgages, for example), the divorce court typically orders the spouse to whom the property was awarded to refinance within a specified time period.

jonsunkony · Joined: 09 May 2011 Posts: 2 1.32 Dollars($)

Reduce your rate of personal debt to help you get a mortgage because loan.The could be a simple as deleting a wrong remark from your credit or refund of any of your lenders cards . Some credit are less flexible than others, but Shopping around using a mortgage broker can help you find a suitable home loan.

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