Credit after debt settlement

Date: Wed, 08/12/2009 - 19:17

Submitted by anonymous
on Wed, 08/12/2009 - 19:17

Posts: 202330 Credits: [Donate]

Total Replies: 3

I am curious to know what kind of credit score I can expect 2 years after settlements are complete. Will be able to get a mortgage assuming I have perfect payment for the 24 months following and 2 years of steady income. I know FHA loans accept BK after 2 years if the above criteria are met. Is it the same with Debt settlement. Cant see how it could be worse, but you never know. Anyone go through this already?

No doubt that debt settlement would take a toll on your credit s

No doubt that debt settlement would take a toll on your credit score lowering it by as much as 50 points.

Anyway, in order to qualify for mortgage one needs to have a min score of 620, it may vary between the lenders though.

lrhall41

Submitted by SC on Thu, 08/13/2009 - 04:40

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Is it reasonable to assume that a score of 620 is attainable aft

Is it reasonable to assume that a score of 620 is attainable after 2 years if perfect credit is maintained in that time?

lrhall41

Submitted by on Thu, 08/13/2009 - 07:41

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The time it will take for your credit to recover after settlemen

The time it will take for your credit to recover after settlements are complete will differ for each individual.

Length and depth of credit history, was a mortgage and/or car payment(s) kept current through out the settlment process etc...

I worked a file recently:
60k debt
Settled for 22k
9 months later approved FHA underwriting for home purchase 30 yr fixed 5.8

Mileage may vary

lrhall41

Submitted by on Thu, 08/13/2009 - 10:24

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