NEED A MORTGAGE, BAD CREDIT AND JUDGEMENTS

BRINKLEYX5 · Joined: 12 Jan 2006 Posts: 5

MY WIFE AND I ARE TRYING TO BUY A HOUSE. WE HAVE SEVERAL JUDGEMENTS ON OUR CREDIT FOR MEDICAL BILLS. WE ALSO HAVE COLLECTIONS ON OUR CREDIT. WE WANT TO GET OUR CREDIT BACK ON TRACK AS WELL AS GETTING A MORTGAGE. WE BOUGHT A HOUSE 10 YEARS AGO, AND HAVE MADE ALL OF THE PAYMENTS ON IT SINCE. WE HAVE SINCE MOVED OUT OF STATE, AND WE RENT IT OUT FOR ENOUGH TO PAY OUR PAYMENT. WE ALSO HAVE SEVERAL GOOD ACCOUNTS IN THE PAST 2 YEARS. I KNOW MY CREDIT SCORE IS LOW(493). WE NEED TO KNOW WHERE TO START TO BE ABLE TO GET A MORTGAGE. SHOULD WE TRY TO PAY OFF THE JUDGEMENTS FIRST, THE SMALL COLLECTIONS, OR FILE BANKRUPTCY BEFORE WE CAN GET A MORTGAGE? OUR TOTAL JUDGEMENTS AND COLLECTIONS TOTAL ABOUT 35,000.00 OF WHICH ABOUT 25,000.00 IS MEDICAL BILLS.(MY WIFE GOT PREGNANT AND WE DIDN'T HAVE ANY MEDICAL INSURANCE)

THANKS FOR YOUR HELP

JIMMY BRINKLEY

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

How old are your collection accounts?

BRINKLEYX5 · Joined: 12 Jan 2006 Posts: 5

MOST OF THE COLLECTONS ARE 2 YEARS OLD OR MORE. THERE ARE A FEW THAT ARE WITHIN THE LAST YEAR(THEY ARE ALL MEDICAL). ALL OF THE ONES THAT ARE WITHIN THE LAST 2 YEARS ARE SMALL. I CAN AFFORD TO PAY THEM OFF NOW. BETWEEN MY WIFE AND I THERE ARE 6 JUDGEMENTS ALSO, ALL OF WHICH ARE MEDICAL, AND ALL BUT ONE OF THEM ARE FROM 2002, 2003(THATS THE YEAR MY SON WAS BORN). THE OTHER ONE IS FROM 2004, AND I HAVE NO IDEA WHAT IT IS. I SENT AN INQUIREY TO EXPERIAN TO INVESTIGATE IT.

THANKS FOR YOUR HELP,

JIMMY BRINKLEY

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

It will take time for your credit to come back. Paying the collections will not make your score go up. You still have some active accounts in good standing?

BRINKLEYX5 · Joined: 12 Jan 2006 Posts: 5

YES, I HAVE,
THE MORTGAGE ON MY FIRST HOUSE(IT WAS ONLY 19,000),
AND I ALSO HAVE 3 CREDIT CARDS(SEARS,PENNIES,MASTERCARD), THAT HAVE ALL BEEN PAID GOOD, 2 AUTO LOANS PAID OFF IN FULL PAID GOOD (ONE FOR 7,000 AND ONE FOR 21,000), AND MY CURRENT TRUCK LOAN(FOR 23,000) HAS ALL BEEN PAID GOOD. IF PAYING THE COLLECTONS ON MY CREDIT WON'T HELP SHORT TERM, WHAT ABOUT THE JUDGEMENTS? OR WHERE SHOULD I START SO THAT I CAN AQUIRE A MORTGAGE?

THANKS,

JIMMY BRINKLEY

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

Paying the judgments will take time to see an improvement as well. Do you know your current scores? What is the price range you are looking into?

BRINKLEYX5 · Joined: 12 Jan 2006 Posts: 5

I KNOW THAT MY CREDIT SCORE IS 493. I AM SURE THAT MY WIFE'S IS SIMILAR. WE ARE LOOKING TO BE AROUND 130,000, TO 150,000.

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

This will take time. If you get up to 500 you will need 20% down. When you get up to 580 you will be able to do 100% home loan financing.

BRINKLEYX5 · Joined: 12 Jan 2006 Posts: 5

HOW LONG DO YOU THINK THIS WILL TAKE? WHAT STEPS SHOULD I TAKE TO IMPROVE IT AS QUICKLY AS POSSIBLE? IF I HAVE SOMEONE CO-SIGN ON THE LOAN, WHAT EFFECT WOULD THAT HAVE?

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

It is impossible to know when you score will rise. Even if you get a co-signer you will be subjected to using your damage credit.