Refinancing with bad credit
Mon May 12, 2008 04:05PM
Q: I am trying to refinance and I have first and second mortgages, with 60 days late on my first mortgage and 120 days late on my second. Had some problems that didn't let me keep up with my payments. Right now I am on a forbearance agreement with my first mortgage, but the repayment plan terms are worse than those of original loan.
A: Your situation is bad. Even if you have significant equity, it is going to be very problematic in today's market. Call your first mortgage lender and try to renegotiate. Be nice but as the last resort, tell them that you may have to simply walk away. If you settle with them, call your second which I hope with the different lender, and inform them that unless they give you some relief, like lowering the interest rate or allowing to skip few payments, you would foreclose and they may lose entire position. If both of your mortgages are with the same lender, try to consolidate in one at better terms. If nothing works, you may have to try selling it.
Student loans and late payments
Mon May 12, 2008 02:05PM
We get this question too often and just want to make it very clear. Student loans are different from pretty much any loan type out there. They can't be forgiven under almost any circumstances and quite impossible to dispute if the negative information like late payments is correct. Credit reporting agencies will verify them always. So don't be late, and if feel that you may be in troubles repaying on schedule, try your best to rearrange with your lender.
No validation provided by collection agency
Wed May 7, 2008 12:05PM
Q: I received a letter 3.5 months ago from a law firm stating that it got an account with $1,800 balance for collection from a credit card issuer. I wrote back to them by certified mail with signature confirmation and return receipt, that I had never had this credit card and asked for the proof. And I truly never had it. Yesterday I received another letter stating that this was my last chance to settle the matter before they sued me for $2,350 which I can only assume, includes now interest and fees. Don't they still have to produce some paperwork proving the account belonged to me at some point as well as that they have a right to collect on someone else behalf?
A: The law firm must furnish the proof. Otherwise it has no case and merit. According to FDCPA Section 809. Validation of debts [15 USC 1692g]
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
Get credit card from your bank or credit union
Tue May 6, 2008 11:05AM
If your credit scores and history are at the point where you are thinking to apply for a regular credit card, the best places are your bank or credit union. Open a checking account unless you have one already and apply for credit card after 6 months. Chase is probably the best bank since it offers many credit cards and rather lenient to past credit sins. Of course if you are a member of a credit union, or can become one, this is the place to get your first credit card.
When judgement is removed for sure?
Sun May 4, 2008 02:05PM
Q: I am confused as far as judgement removal goes. Will a judgement that is unpaid be removed from a credit report after 7 years, or will it only be removed 7 years AFTER it is paid?
A: Again, according to FTC Official Staff Commentary ยง 605(a)(2): "Paid judgments cannot be reported for more than seven years after the judgment was ENTERED, because payment of the judgment eliminates any "governing statute of limitations'' under this subsection that might otherwise lengthen the period." So once it is paid it, it should be removed pretty much immediately.
Equifax address
Sat May 3, 2008 12:05PM
Equifax address is even more obscure. The company wants you to order and dispute online. Here is the address you can try for an enquiry, and I would only use certified mail with signature confirmation. Equifax address is
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
Experian address
Sat May 3, 2008 12:05PM
Apparently there is some confusion with Experian address. Experian has many addresses for different purposes. The agency doesn't like mail, preferring phone, fax and email. The address for the masses is
Experian
P.O. Box 2104
Allen, TX 75013-2104
If you want to get credit report, should visit this page.
Bad credit with unpaid judgements
Wed Apr 30, 2008 04:04PM
Q: How long do unpaid judgements remain on the three major credit reporting agencies files? How bad my credit scores will be affected?
A: Unpaid judgements are straight way to the bad credit, well I'd say to the credit hell. How do you like that one? Of course, the older the judgment becomes, the less affect it has on the credit score, but the initial impact is so negative, your credit will be bad for years to come. Unpaid judgments stay normally for 7 years or until the governing statute of limitations has expired, whichever is longer. State statute of limitations for judgments range from 4 years in Pennsylvania to 21 years in Ohio, and have no limit in Delaware. But and this is a huge 'but', unpaid judgements in very many cases are renewed one or more times.
Does credit card 'authorized user' have any legal obligations
Wed Apr 30, 2008 04:04PM
Q: My ex was an authorized user on the MasterCard that belongs to my brother. He charged $1,700 on it and refuses to pay. Is there a way to force him pay? Being only an authorized user, he can get away with not paying, I was told.
A: To my best recollection, he can. Had he been a co applicant, that would've been another story. But having him as simply authorized user, your brother may have assumed all financial responsibility.
Old 30 and even 60 day 'Lates' will not affect credit scores too much
Sat Apr 26, 2008 09:04AM
Q: I have one 60 day late from 02/02 and two 30 day lates on paid off and closed Honda Financial credit account from 06/05 and 09/06. I have tried everything to remove them, but credit agencies always get them verified. How bad do these three lates hurt my score? Currently my scores are 621, 637 and 648. I have a mortgage and two credit cards with low balance to credit limit ratios, but they only have been open since 03/07
A: The one from 09/06 affects you the most as it happened only 20 or so months ago. The other two don't do as much damage, but still hurt. The good new are that 60 day late payment will be gone in less than a year, and the one from 09/06 will be getting over two years in October. You should see your credit scores go up. How substantial is hard to predict, but something in vicinity of 20 - 25 points is quite likely. Then it should be a matter of 6 to 8 months, you see another increase.
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Recent Entries
- Refinancing with bad credit
- Student loans and late payments
- No validation provided by collection agency
- Get credit card from your bank or credit union
- When judgement is removed for sure?
- Equifax address
- Experian address
- Bad credit with unpaid judgements
- Does credit card 'authorized user' have any legal obligations
- Old 30 and even 60 day 'Lates' will not affect credit scores too much
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