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Old 07-14-2008, 01:52 PM
 
596 posts, read 1,753,290 times
Reputation: 182

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With charged off credit card accounts over 3 years old, is it even worth trying to obtain a mortgage loan?

Do these need to be paid? I read another posters discussion where he was advised to "let sleeping dogs lie" or something to that effect. I am afraid to call the original card companies because I fear they'll let the collection agency du jour know that I'm alive and can be reached at this number, sort of thing.

Thanks for any advise.
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Old 07-14-2008, 02:58 PM
 
3,528 posts, read 5,844,771 times
Reputation: 4637
Quote:
Originally Posted by jctx View Post
With charged off credit card accounts over 3 years old, is it even worth trying to obtain a mortgage loan?

Do these need to be paid? I read another posters discussion where he was advised to "let sleeping dogs lie" or something to that effect. I am afraid to call the original card companies because I fear they'll let the collection agency du jour know that I'm alive and can be reached at this number, sort of thing.

Thanks for any advise.
Having just gone through the whole pre-approval process myself, the very first thing you need to do is find out exactly where your FICO scores are. Lower than 600 would be a definate problem. Contact a Mortgage Broker and have them take a look for you. With a decent down payment and good credit in others areas, you could still qualify for a FHA Mortgage without too much trouble
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Old 07-14-2008, 04:47 PM
 
596 posts, read 1,753,290 times
Reputation: 182
What would be considered good credit in other areas? Also, what would be considered a good down payment (percentage-wise)? Thanks for your help.
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Old 07-14-2008, 07:32 PM
 
Location: Las Vegas, Centennial Hills
2,013 posts, read 4,620,735 times
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If you go with an FHA loan they will most likely require you to pay off the charge-off/collections at closing. Medical collections do not apply. I believe that with a conventional mortgage you may not need to, depending on what the automated underwriting findings come back with and the amounts of the charge-offs. Your best bet would be to talk to a loan officer before you talk to the creditors or the bureaus. If contact is made and these charge-offs are bumped to the top of the report, it may cause a decrease in your FICO scores. Consult with a mortgage professional to see if it would even be necessary, given your particular scenario, to pay off said collections. If you cannot obtain financing due to the collections, then contact and resolve.
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Old 07-14-2008, 07:33 PM
 
626 posts, read 1,206,888 times
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Let them lie and they'll disappear after 7 years, even if you pay them they will still reflect as a charge off on your credit report and it will start the 7 year reporting period over again.
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Old 07-14-2008, 08:14 PM
 
Location: NC close to the MTs and near the lakes.
2,766 posts, read 3,511,127 times
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Quote:
Originally Posted by gumbo31 View Post
Let them lie and they'll disappear after 7 years, even if you pay them they will still reflect as a charge off on your credit report and it will start the 7 year reporting period over again.
gumbo is right do not pay.Right now those loans will be off of your credit report in a few years. If you pay then now they will stay on your credit report for 7 years right were you begain.
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Old 07-14-2008, 09:02 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 11,756,958 times
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1. it depends when they went to collections
2. it depends on the amounts
3. you must pay ALL judgements not collections
4. FHA doesn't look at medical collections
5. FHA may not require you to payoff the collection

Quote:
Originally Posted by jctx View Post
With charged off credit card accounts over 3 years old, is it even worth trying to obtain a mortgage loan?

Do these need to be paid? I read another posters discussion where he was advised to "let sleeping dogs lie" or something to that effect. I am afraid to call the original card companies because I fear they'll let the collection agency du jour know that I'm alive and can be reached at this number, sort of thing.

Thanks for any advise.
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Old 07-14-2008, 10:14 PM
 
3,528 posts, read 5,844,771 times
Reputation: 4637
Quote:
Originally Posted by jctx View Post
What would be considered good credit in other areas? Also, what would be considered a good down payment (percentage-wise)? Thanks for your help.
Do you have a car loan? If so, have you made all your payment in the last year on time? Do you have any credit cards? Even if they are secured they can help with your credit scores. If you do have credit cards, are the balances below 33% of the total credit available and have you made all your payments for the last year on time? All the above will help with your credit scores. As far as the down payment, if you qualify for a FHA its a minimum of 3% but you can get a better interest rate with a higher down payment (5% to 10%). Hope that this helps.
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Old 07-14-2008, 10:25 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 11,756,958 times
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This is incorrect.
FHA interest rates are not derived from the down payment.
FHA interest rates are determined by the following factors, and may vary with lender.

1. Credit Score
2. Property type (SFR/Condo/Manufactured)
3. Loan amount
4. If Manual Underwriting is required
5. FHA Jumbo or not
6. State

Quote:
Originally Posted by Va-Cat View Post
Do you have a car loan? If so, have you made all your payment in the last year on time? Do you have any credit cards? Even if they are secured they can help with your credit scores. If you do have credit cards, are the balances below 33% of the total credit available and have you made all your payments for the last year on time? All the above will help with your credit scores. As far as the down payment, if you qualify for a FHA its a minimum of 3% but you can get a better interest rate with a higher down payment (5% to 10%). Hope that this helps.
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Old 07-15-2008, 07:24 AM
 
3,528 posts, read 5,844,771 times
Reputation: 4637
Quote:
Originally Posted by renriq02 View Post
This is incorrect.
FHA interest rates are not derived from the down payment.
FHA interest rates are determined by the following factors, and may vary with lender.

1. Credit Score
2. Property type (SFR/Condo/Manufactured)
3. Loan amount
4. If Manual Underwriting is required
5. FHA Jumbo or not
6. State
Sorry renriq - I was typing to fast & missed putting in part of the sentence. What I meant to write was that the interest rate charged on a conventional loan (not FHA) was is in part dependant on the percentage put down. Thanks for correcting this for me
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