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JGucci119

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Need help dealing with derogatory marks and foreclosure
I am trying to get an FHA secured mortgage in June. I am waiting till June because my last foreclosure's final judgement will have been 3 years ago June. In the meantime, I am trying to do whatever I can to raise my score. I have 3 derogatory marks, collection agencies, all totaling less than $900. I am considering trying to settle these accounts and get an NDA with the collection agencies so that I can try to petition the credit bureau for removal. I don't have a lot of money saved up but settling these small debts shouldn't set me back much. My question is, if I settle, and if I can get the agencies to agree to a non disclosure, and if I can get the marks removed thru petition, is it just putting lipstick on a pig considering I lost 3 properties to foreclosure (all within a few months of each other and the last one being June of 2013) I really want to do all I can, but I don't want to throw money away if it will have little or no effect on my mortgage-ability. As of now, my credit karma scores are between 647-652, and my FICO scores are between 602-620. I would really appreciate any advice I can get. Thank you

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The foreclosures will probably hang around for 7 years, not 3. As for the derogatory marks, you *could* do a 'payment for removal' in which they remove the degrogatory remarks in exchange for settling the debts. The accounts will still sit on your record for seven years after paying them off though.

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For what it's worth, I had a foreclosure 5 years ago as part of a Chapter 13 Bankruptcy (I just came out of it a ferw months ago). It actually improved my score, as the remarks note that it was included w/ the Chapter 13 and (all but two of) the derogatory remarks were removed by creditors. Note however that my circumstances are not yours, and you need to talk to a lawyer before considering anything like a bankruptcy. A Chapter 13 can improve your credit scores under certain circumstances (you won't qualify if the total debt isn't high enough, which is why you need to talk to a bankruptcy lawyer first), but they could include the foreclosures as part of the deal, and the first consultations are usually free of cost, so it doesn't hurt to find out. Note that if you do so, there will be restritions (strong ones!) on credit, where your tax refunds go, what happens to your repayment plan if you get a raise higher than 10% in a year, etc.

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Note that whatever you do, don't expect to buy a house for quite awhile, at least until it all gets sorted out.

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First, dispute the debt with the credit bureau. I had 2 collections accounts. I sent the same dispute letter to the 3 credit bureaus and 1 has already been removed and I am awaiting response for the second. Only after that, do you work out paying the debt. I have found that you cannot not bully the collection agencies bureaus. They know the laws quite well. They know what they are allowed to do and not allowed to do. If you have a good reason why you never received the bills, they will generally agree to a pay for removal. Collection agencies usually accept 25-30% of the debt and are happy with 50%

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