Posted on: 31st Aug, 2010 08:01 am
in 2006, due to loss of employment, divorce, and illness i attempted to reorganize under chapter 13. it became evident that i was not going to be able to complete the 13 and it was dismissed. this resulted in a deed in lieu of foreclosure.
fast forward to 2010 and i have remarried, great job w/ excellent income and my credit is much better as i have re-established. my median fico is 665 and my wife's is 770. we are trying to buy a home under va. out total debt with the new payment is 30%. we have residual income of 6k per month.
the lender is requesting i pay off old debts from the dismissed 13 which is no problem. this has to be a manual underwrite because of the bk. i am hopeful but not convinced my strengths will outweigh the issues. i had perfect credit prior to include 3 mortgages.
any thoughts or advice on a backup plan?
fast forward to 2010 and i have remarried, great job w/ excellent income and my credit is much better as i have re-established. my median fico is 665 and my wife's is 770. we are trying to buy a home under va. out total debt with the new payment is 30%. we have residual income of 6k per month.
the lender is requesting i pay off old debts from the dismissed 13 which is no problem. this has to be a manual underwrite because of the bk. i am hopeful but not convinced my strengths will outweigh the issues. i had perfect credit prior to include 3 mortgages.
any thoughts or advice on a backup plan?
Welcome cb,
Well... I don't think there's a back up plan when you speak about paying off the debts. If you pay off your old debts, it will have a positive affect on your credit report and your credit scores would also improve drastically. Thus, you would be able to get a mortgage with better rates and terms.
Well... I don't think there's a back up plan when you speak about paying off the debts. If you pay off your old debts, it will have a positive affect on your credit report and your credit scores would also improve drastically. Thus, you would be able to get a mortgage with better rates and terms.
Since the older collections are not being reported and will drop off as 2 already have. Paying them now will bring them current and show recent activity. This will, in fact, lower my score dramatically for awhile, right?
For the long term, showing paid is good but they will drop off of my report at around the same time as that benefit of a higher score is realized.
I am being offered a 30 year VA at 4.25% with no points...so I'm not sure it gets any better than that.
For the long term, showing paid is good but they will drop off of my report at around the same time as that benefit of a higher score is realized.
I am being offered a 30 year VA at 4.25% with no points...so I'm not sure it gets any better than that.
Hi cb!
Welcome to forums!
Paying the debts will help you in improving your score. If you're getting a VA loan with a low interest rate and no points, then you should go for it if the lender has no issues with the charged off account.
Sussane
Welcome to forums!
Paying the debts will help you in improving your score. If you're getting a VA loan with a low interest rate and no points, then you should go for it if the lender has no issues with the charged off account.
Sussane