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Need to refinance mortgage have charge offs with expired sol

Date: Thu, 12/01/2005 - 14:42
Submitted by on Thu, 12/01/2005 - 14:42
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Hi, I have been reading posts to this forum and hope to get some solid advice. Due to a car accident and being out of work for several years in the 1990's, we put a lot of medical bills & co pmts on some charge cards. Eventually, we were unable to pay even the min pmts, and they went into default. They were charged off in 2000 and early 2001. We are in Fl, so our SOL is 4 years. We would like to get a mortgage (either a second or a refi) on our home. I now have an avg credit score of 648, my wife's avg is 625. Is it possible to either dispute these accounts w the 3 credit agencies, or othewise remove these chg offs since the sol is over, or obtain a mtg without having to commit to repaying these old accounts? I am over retirement age already, but still working that way hopefully we can qualify. By the way, we have about 200k equity in our home, owe about 20k on it, and need about 85-90k in addition to that. Otherwise we owe just a small chg card & a car pmt (1 yr left)Thank you for your answer in advance.


Hi mtnlover

Welcome to the forums.

Although you may not qualify for the best deal, but your credit scores might not be objectionable while getting a mortgage. Do you have monthly source of income so that you can make regular payments to your lenders? Repayment is one of the factors in which any lender will be keenly reviewing.

Your past debt got charged off and at present it is out of the SOL period. Though, no agency can file a lawsuit against you and force you to pay the said debt, but if you consider paying it, you will be improving your credit ratings. Your credit will be viewed more favorably than what it is at present.

Quote:

Is it possible to either dispute these accounts w the 3 credit agencies, or otherwise remove these chg offs since the sol is over,


Charge off is a negative remark that will stay in your file for a period of 7 years as per the FCRA laws. Disputing the item will not be beneficial to you in anyway. In fact, paying off the amount will do good to your file.

If you wish to put the past accounts in the consolidation program, do take a free counseling in this website. The consultant will be able to work out a suitable plan and guide you in making proper financial decisions.

Regards
Roxette


Submitted by roxette on Thu, 12/01/2005 - 15:01

roxette

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Thank you for the reply Roxette. The chg offs amount to between $75 & $85k, so far as I can see paying them off is not tn option for me. Yes, at this time I have about $70k a year income. I had considered applying for a mtg a couple of yrs ago b4 the SOL was over, but was told that in order to qualify that I'd have to pay off all the chg offs. That is why I am ariting on this forum, to see if that holds true now that the SOL is up. I'll never be able to quit working if I can't soon get things rolling on another mtg! MUCH Thx again!


Submitted by on Thu, 12/01/2005 - 15:12

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Mtnlover

When you approach a lender, do some researches before you finalize the deal. Compare the rates with other lenders so that you bag the best deal around.

One more thing that you need to pay attention is to read the agreement deed very carefully. Get all the points clearly explained as one unclear point may turn out to be expensive at the end.

You might be aware of the various scams happening in US. Be very careful on that note and get everything in writing. Also, take the advice from your lawyer if you have problems in understanding the agreement.

Regards
Roxette


Submitted by roxette on Thu, 12/01/2005 - 15:29

roxette

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You are such a huge help. Maybe I can actually make this thing fly this time around. Would you please elaborate on the various scams that are out there, and what points I should pay particular attention to in the mtg agreement? My current mtg is a 15 yr fixed with no prepmt penalty - which is what I want again. I am not familar with current scams or what to look out for. I have conc=sidered getting a atty that specalizes in real estate closings, but I'm not sure how that would benefit me compared to a title company. I am wanting to buy a home in the mtns and found one I just love - hence, the need for a refi or 2ed mtg. Have a GREAT night, mtnlover


Submitted by on Thu, 12/01/2005 - 15:37

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Hi

Lots of postings about the various scams are available here. Give some time and browse through this entire forum. You will learn something that will be always helpful to you.

Please go through the page given below and understand the various avenues before you take a mortgage.

http://www.mortgagefit.com/guides/

Hopefully, you will get the required knowledge in this site.

Regards
Roxette


Submitted by roxette on Thu, 12/01/2005 - 15:56

roxette

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