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Old 09-05-2008, 09:42 AM
 
3 posts, read 4,971 times
Reputation: 10

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Hello everyone, I have been doing some reading here over the last few days and have decided to post my first question. Please let me explain my situation.

Prior BK discharged in 2003 (due to a physical injury that resulted in being out of work for a year). We sent everything back, our cars, house, credit cards etc - we wiped the slate clean and started over.

2 years ago we purchased this home that we currently have. We went through a friend to get a mortgage and he broke the mortgage up into two separate loans that were adjustable and now our payments will be ballooning up considerably in two months. So now we are hoping to refi.

My wife's credit score is around 650 and mine is 550 right now. 5 months ago I had a around a 670 credit score but then I bought a new truck, a new jeep for my wife and we also started a refi with Quicken loans (which we were approved for but turned down) so all of the new credit and the inquiries on my credit has caused our scores to drop a lot in points. My credit score did jump up 30 points from last month to this month though.

We have had over 5 years of very solid payments and have no late payments on our record at all. We have always made our house payments and car payments on time. One thing that is really hurting my score is that I have several accounts reporting against me even though I filed BK on them and have the proof to show it. I also have written many different companies providing this proof and still cannot get them to stop reporting against me.

When we purchased this home two years ago we did so with a 100% no money down loan. But since then I have built on a new master bedroom and installed all new vinyl siding over the entire house. So I think the house is worth more now then it was two years ago when we purchased it.

So I guess my question is if my wife and I be able to refi our two current loans into 1 good rate loan even though I have a low credit score - but do have a few years of solid payment history on all accounts.

I did some figuring last night and our debt to income ratio is about 31-33%

Any advice would be greatly appreciated.
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Old 09-05-2008, 11:19 AM
 
Location: New York
2,251 posts, read 4,161,023 times
Reputation: 1607
Sounds like your candidate for an FHA loan, will approve with lower credit scores.

As for your previous lenders who you owe money too, but didn't pay due to your B/k. All your bankruptcy does, is prevent them from taking legal action against you. Your need to dispute your credit report, adding a statement "included in bankruptcy".

Another suggestion - start sending in extra with your new truck payment. What your doing is - putting gasoline on fire. Sending more with your normal payment, after a few months the credit bureaus see you being more responsible and can raise your score......
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Old 09-05-2008, 11:46 AM
 
3 posts, read 4,971 times
Reputation: 10
I did fax my BK paperwork to all three of the big companies who report on my credit and nothing was done with the current items against me that I filed BK on.

I have always paid more than owed on my truck, jeep and house payments so I am trying really hard to bring my score back up. Hopefully the bank will see that we have made all of our payments in a timely fashion and are in a position financially to easily make all of our payments. So hopefully they will not pay too much attention to our poor credit scores and focus more on what we have been doing right over the last few years.

Our first mortgage that we BK'd on was an FHA loan. That was 5 years ago when it was discharged so do you think FHA would still lend to us again?

Thanks again!
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Old 09-05-2008, 12:17 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,674 times
Reputation: 249
it was a bad decision all around to obtain that much debt that fast and prior to refinancing. you need a CPA or financial adviser that you can consult with every time you think you need to make any kind of financial purchase. or obtain any kind of new credit or debt.

obviously if you had planned ahead this wouldn't have been a problem. I am not aware of an FHA program that goes below 580. I could be mistaken though.
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Old 09-05-2008, 12:49 PM
 
3 posts, read 4,971 times
Reputation: 10
I didn't take on any new payments - I already had car loans that were about the same monthly payment as I have on both autos now. I just replaced two aging cars with two new models. I had been making payments on our other cars for the last 4 years with great payment histories.
So basically I have not taken on any new increased monthly payments that I had not already been respectively paying on for the last 4 years.


Had I known that I had an adjustable mortgage before last week I obviously would have planned ahead.
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Old 09-05-2008, 03:03 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,674 times
Reputation: 249
and how do you think you got the financing? run your credit through 20 banks, twice...
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