I am in a situation that I really need to start rebuilding my credit. I got divorced about a year and a half ago, and through the course of that marriage and the subsequent divorce my credit got absolutely wrecked. My 700 credit score plummeted below 500 - that's how bad it is.
I'm in a place now where my home is on the market and more than likely going to end up in short-sale or deed in lieu. There is nothing I can do to keep my home, as I have maxed out every resource to keep it. I know my credit is going to take a hit over the next few months with my mortgage not getting paid, the short-sale/deed in lieu process, etc. But I would like to do what I can to try to repair the other negative things on my credit.
Here is an overview. I have two accounts in good standing. My auto loan is current, and a joint credit card I have with my parents is in good standing. This registers as my oldest card as they opened it 20 years ago. I have several charged off credit cards from the marriage/divorce - most of which have gone to collections. I also have a utility bill that registers as settled for less than the amount owed.
What should be my first steps to repairing my credit? I have already sent letters to the credit reporting agencies disputing several items that I do not recognize. What do I do after that? How successful is the pay for delete option? And if I send a Debt Validation letter to a debt collection agency that can't validate the debt - how do I get it removed from my report?
dispute the utility on the CRAs
Dispute the other charge offs directly with the tradeline owner. this will be a 623 dispute
I sent letters disputing some things on my credit reports to the credit reporting agencies (TransUnion, Equifax, and Experian) over the course of the last month. I got the return receipt for the first one stating they got it December 28th, so I'm waiting for that one to come back first. Once I get those back, I start the process of debt validation and possible pay for deletes, right?