All of us are so conditioned into believing in a system that is solely based on a number-the great "FICO". And, I'm sure many of us will lend all the reasons why we should be in response to my input here.
The FICO score is simply an "I love debt " Score. When one awakens to this reality, like me, they will let go of the need to maintain it. I have made the decision to stop worshiping at the altar of the great FICO.
My goal is now to become 100% debt free. This has to exclude all credit cards and borrowing. By doing this it will mean that my credit score will eventually cease to exist. Is that so bad? Oh, but what about attaining a home loan? Well, there is a little known thing called...."Manual Underwriting" where a real banker takes on the arduous task of actually looking at your finances without merely plugging in a number and then waiting for the computer program to spit out a program/plan based on that number.
I have awakened from the "American Dream". I now find myself empowered by a plan so simple in principal, that I can't believe I could not see it before.
I will let go of my house.I do so with no reservation. I have done everything within my power, but greed is a power greater than mine and it rules the day in every market, including housing.
We live under the illusion that our credit scores make us better, or worse, than the next guy/girl. Once you surrender and let go of this falsehood you are free to make a better life.
Who wants to play "Kick the can" ? Everything I have read here on this site, and at the treasury departments website, tells me that we are merely being offered a rent for life policy. Its more of the same. Go and see for yourself, as I had to do.They are offering a 5 year deal. Lower interest rate for 5 years, then moderate increases thereafter.
The reality is(my reality)that if you are paying more than 25% of your "take home pay" toward your mortgage(tax/ins/principal/interest) and you have a car payment and a large helping of debt too, then you will never get any traction.I am now sitting at 54% ! I lost 1500.00 income a month. Income that should never have been included in my brokers numbers to begin with!
I do not want a bail out. I will bail myself out. Our government cant manage our money well, they never have.
I hope you all will find financial peace. I am well on my way. My goal will be to attain a FICO score that will not be detectable. There is a growing number of Americans who have awakened to a new reality. This reality includes living within our means and on less than we make.We will live debt free, including having a paid for house. Remember, 100% of forclosures involve a mortgage
Freedom is inevitable! As soon as we break away from what we have been conditioned into believing is normal, i.e. mortgages/car, boat, RV payments ETC. We love our debt, and we have great credit scores to prove just how much we love it. Stop using credit and it will cause that score to go way down. I have had 2 credit cards closed because of inactivity. I have since closed them all, at my request.
I've always been proud of my credit score... now it's headed for the toilet! I don't even care anymore. I've also realized that it's just a number and it says pretty much nothing about the kind of person you are.
Thanks for all of the credit info. My question is, if we end up without a modification, we may face foreclosure and bankruptcy. Does this mean we will take double the hit on our credit? What kind of hit are we facing?
Have questions about construction loan foreclosure with Chase bank in Tennessee. Wondering about deficiencies in Tenn. Tried to do loan modification. Chase did not perform construction inspections and builder took draws without completing work. Need direction on this issue.
I had to foreclose on my home in Arizona in 2008. I had an 80/20 loan through EMC Mortgage. It was my understanding that the second mortgage would be included in the foreclosure. However, I am still receiving a bill for the second every month. My credit report shows that it is in collections. I have called more times than I can count. If I put in my account number they send me straight to collections. If I don't, they try to transfer me to someone who can help me and I am automatically disconnected EVERY TIME! I have written letters, and I receive a response from EMC stating that they will research the matter and respond within 60 days, but I never hear back. I have also written all three credit bureaus and they respond that it is reported correctly.
Can anyone help me? Have I been given inaccurate information regarding the second loan? I used all of the money towards the purchase of the house and did not take any cash out. Should that loan have been included in the foreclosure as I was told? And if so, what should I do to rectify the situation?
I just found this site and learned a lot by reading the posts in the forum.
I live in NY. I own the house I live in with my mother and recently deceased father. We have a mortgage with AMHSI. We were finally able to obtain a loan modification last year after waiting 8 months and lots of interest and late charges later which were added to our loan amount. Due to my father's recent passing, my recent job loss and inability to rent the available unit in the house at a reasonable rate we are now behind in our mortgage.
From what I have read it appears that New York is a "one action state" which means the lender can either foreclose or sue for full loan amount. I now understand that with a short sale or deed in lieu of foreclosure the bank can sue for the deficiency amount. Is this correct? Also, my mother and father were the only ones on the mortgage loan, however, I am listed on the deed as an owner. I have been told by a lawyer that if the house goes into foreclosure it does not affect my credit rating because I am not liable for the mortgage. I am asking for help in knowing this information is correct.
It seems the right decision would be to let the bank foreclose. Now I understand why they were so accepting in agreeing to a short sale. Any help with these questions would be most appreciated!! What a great site. It's unfortunate but also comforting to know I am not alone in suffering from this economic mess. Many thanks.
Thanks for your post. Sorry to hear of your predicament. Yes, you are among many members who are in similar situations. However, I don't know that you'll receive more credible advice than you may have already received from that lawyer. If you need more legal advice, I recommend you contact that lawyer, or consult with a another NY lawyer. Good luck.
:idea:We went through a foreclosure in August of 2010 due to a job transfer and a underwater mortgage. Our redemption period ended in Feb of 2011. We had otherwise excellent credit scores in the high 780's before the foreclosure. With our late payments and foreclosure our score dropped to the 650's. We had other long standing accounts that we continued to pay and had no other negatives on our credit report besides our late mortgage payments and foreclosure.
11 months later our score is back in the 720's. The transmission on our car went so we applied for a car loan and bought a used vehicle with a 3.99% interest rate. Two of our newer credit card accounts slightly lowered our available credit limit, but all of our other credit cards remained the same through this entire process. We still have a twenty thousand dollar limit on a credit card that our foreclosing bank servicer holds and they send me blank checks every week to get a year free interest if I will borrow or transfer balances to that card, but I hate them so I won't lol.
In short, we have recovered pretty easily from our foreclosure just by continuing to pay all of our other debt on time. The threats of being destroyed for life by a bad FICO score seem to be exaggerated. We were expecting years of hardship but our foreclosure ended up going from our worst nightmare to a very happy ending. We no longer have the albatross of sinking home pulling us down and we are well on our way to complete financial freedom with housing costs far below what we were paying. Life is good.
shayl475-While I know this post is a few months old, your post gives me great hope. My husband and I are in a very similiar situation to yours, having high scores, but being so underwater on a home with an ARM that we will be missing our first payment next month. It is comforting to know that it's not always as doom and gloom as I assume. I work in a credit union and see other people's credit on a daily basis so I know how things can affect your score. Thank you for sharing!!
I am currently in the process of letting my vacant house that we moved out of a year ago foreclose. Before I missed my first payment in Spetember of 2011, my FICO was about 720. Just looked at it the other day and it is down to 557. However, I have stayed current on everything else and none of my credit limits have been affected whatsever. I will be curious to see how this all plays out. Best of luck to you!
Shay; TY so much for sharing your info.
We are also in the same situation. We even have other MTG act currant. This gives me great hope. I was afraid that not only will I not be able to get a new mtg for very long time AND since my career is in the finance, (they check credit prior to hiring) that I will not get another job either. I am hoping that you are right and within 12months my credit score will be good enough to pass the company guide for hiring.
BTW- have you tried to get a mortgage loan as you have high credit score now?