Posted by kathy on November 10, 2003 at 18:56:11:
Credit counseling looks like Chapter 13 on your credit…it will deifnately bring down the credit score. Write letters and negociate on your own behalf with the creditors. If the stuff is real old they will be glad you are willing to pay anything.
Advice, please - Posted by Josh
Posted by Josh on October 22, 2003 at 08:36:27:
I recently met with a mortgage consultant in a very informal way to determine what if any financing I could qualify for. He showed me my FICO score of 516 and suggested to me that filing bankrupcy would be the way to go if I ever wanted to up my score. The report consists of several small balances ($200-$500) and late payments, etc. My question is would it be beneficial for me to try and repair my credit or file bankrupcy and start from scratch. The mortgage consultant told me he’s done loans 3 months out on clients who filed. Any feedback would be greatly appreciated. In the mean time I’m going to meet with a lawyer to discuss my options.
Re: Advice, please - Posted by Dimpil
Posted by Dimpil on October 23, 2003 at 18:16:34:
I suppose he had an attorney for you also? It really depends on the score they had when they filed. You can get a loan with a middle score of 516. You may not like the rate but it’s something.
The score you have when you file is the score you will keep. Pay off your debts and reestablish. BK is not a good way to go IMHO.
Re: Advice, please - Posted by E.Eka
Posted by E.Eka on October 22, 2003 at 10:39:09:
The mortgage consultant is just trying to get you a mortgage and isn’t looking out for your best interest. Do you think that bankruptcy will up your score only after 3 months? Most brokers ask you if you’ve filed for bankruptcy, got liens or judgments. Repair your credit, consolidate your several small balances or contact the companies to somehow pay it off sooner. Meeting with a lawyer is the best thing you can do. Maybe even try consumer debt/credit counselling. They’ll negotiate to get your payments lower etc.
I’m assuming the bankruptcy that the consultant is talking about is re-org or chapter 13. Either way, find another mortgage consultant!