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I have gotten a month behind and am finally getting caught up this month, yeah. How long will it take a current payment and staying current to raise my score, I know this has been a big issue in lowering it because I have lagged behind for quite some time. Just now getting enough together with my escrow surplus to make the payment that brings me current.
When will I see the positive effect on my credit score? The mortgage company said they report at the end of each month. Will it take a few months?
One more: Does any lender have any greater affect than the other one your score?
Well ofcourse. You have to keep up with the payments. Unless your account is up to date your scores wont increase.
Always remember as you have a defaulter it will show as a derogatory on the account even if you keep up with the payments later on. This derogatory remark stays for seven years before it drops. What you can do is talk to the creditor and negotiate if possible to remove the remark.
I will try that as soon as I get a few payments current, I don't know if they will do it right away. Our mortgage company was just bought out by a new one, so this is a fresh start with the reporting with them. So I don't think they can remove what is on there from the other company, but a fresh start is good, I can get and stay current from here on out.
I dont have much idea whether the change of a company will affect reporting of an account. This need to be clarified.
I know what is on their from the old company will stay, but I get a fresh start with this company, end of this month they will start reporting me as current, big fat YEAH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I will get finalized statements from the other company and start fresh here, taking advantage of this. Even if the past does stay on my report, hopefully staying current will have the positive effect that I hope it will. I know it has lifted alot of stress off my shoulders.
Of course you guys help to, just listening and responding to me, really helps, thanks a Millllllllllllllllllllllllllllllllllllllllllllion.
When it comes to mortgage, the scenario in th market is not very good. It seems there is a wave of foreclosures coming up with the expected crisis of the sub-prime mortgage lending.
Jim Rokakis(County Treasurer of Cleveland's Cuyahoga County) said
"Wall Street strategies that made the cycle of no-money-down, no-questions-asked lending possible have sucked the life out of my city".
There is a rise of crime in Cleveland it seems. Many homes are owned by banks mainly Deutsche Bank Trust due to foreclosures.
Its a sad scenario.
This situation is insane! i'm not surprised that crime is on the uprise and unfortunately so many people have inflatable mortgages which have led to foreclosures. My father always told me if you buy a home try to avoid the inflatables as they can fluctuate dramatically and at any time and that is seemingly what is happening to so many. sub-prime lending is causing a huge issue for the housing industry. Used to be you would have to put a good percentage down for a home but i've heard of people who put little to nothing down and still get a loan. of course their interest is sky high, our neighbors did this. i know they're struggling now with their payments. it's just a shame. we have strong support structures and good examples to follow, both my parents and hubby's parents own their homes and have for a while. they sacrificed so much to do this. shoot my parents didn't even have a honey moon or go out at all after they married. i don't completley agree with that approach, but they've been homeowners now for 30 plus years. Good quote from Rokakis, Laura...he hit the nail on the head.
Good, sounds like your situation is going well...keep in touch,let us know how you're doing :)
It has almost become a predatory lending nightmare, When I got my mortgage, they looked at my ability to pay. I would not go for the variable rate, defineatly choose the fixed rate, so you know what your payment will be and you can set aside that amount each month.
I am really irritated with the lenders that lend to the folks on a fixed income, mainly social security, SSI and then they put them on the variable rate, which I don't think they understand. When the payment goes through the roof, they can't afford it and loose their homes. I have a friend in this situation. I don't think she is mentally capable to understand all the ins and outs. I am an educated person and have a hard time understanding it sometimes. I got to know her through this situation, she is now looking for a place to rent with her two kids. I think it is sad, because she is older and has owned that home for years and even managed to keep it through a divorce, now she is loosing it to a mortgage company bank.
Well situation is the same everywhere debt. I just highlighted a place. Where are they leaving a chance for harassment?
I know and it has got to more than the consumer loosing here, don't the financial institutions lose on foreclosures too?
They do lose but not as much as the consumer does.
What anthony says is true, because they can resell the property and hopefully get their money back and since they only lend 80-90 percent of the property value in some cases, they are almost guaranteed to at least break even, especially if the home owner has been paying on the loan for awhile before the foreclosure happens.
The home owner on the other hand has this foreclosure on their credit rating for years to come. It can get messy, it is never a good thing to lose your home.
I know when we did a refinance they will do a 90% value of our property and home value. We did not take out the full amount, only what we needed. You know I could take care of this whole loan with one trip to "deal or no deal", LOL.
Very smart to only take out what you need, sometimes unecessary borrowing will lead to unecessary spending, in reality the borrowed money is not really yours to spend when you have to pay it back and the intrest on top of it.
This is the best way to handle finance. Even if you take out money for a purpose and it exceeds what you need there remains a lot of other expenditure. So when you have the money you have the urge to spend as well.
I will be current at the end of this month, it will be such a good feeling.
Oh yes I bet it will feel great! good job!
Now thats good news goodnatured.
Make sure you stick to your plan, sounds like you are heading in a good direction, try to make sure that you make keeping this current your priority. It will do amazing things to your credit score, you will be surprised at what an impact this will have. great job.
I will try to with everything in me, It has taken me forever to get to this point and I don't want to get behind again.
Thats like a fighter. We wish you all the luck.
Morning Good, hope all works out fo ryou. sounds like you're making a strong effort to keep current and that's what it takes. wish i had your determination sometimes...then maybe my darn Sears bill would be current. I can't stand paying them, they don't work with you and they charge you a $25 late fee. I learned a tough lesson, don't pay in the store like i had before. while you may pay on 'time' they don't cash the check for a nice week or so and therefore you can be late. now this cycle i was late so that's my fault. grrrrrrrr makes me mad
so Good if I had your determination i could get this pesky bill off my back. no more retail cards, i find their interest astronomical
I know about late fees, I have quite a few to catch up on, I will start paying a little extra each month to get them caught up once I get current. Thought I would do that around Jan or feb, my first goal is to get current. I actually am at least in the current month now, just late by about two weeks, so I will make that one here end of next week. Just got to stay ahead of the game on this one.
It is tough, little things come up but I need to make this bill priority. and keep it that way.
I just realized, once I make that payment, they will have to report a good month, no more 30 day lates. bump me on the head!!!!!!!!!!!!!!!!!!!
Oh gosh, my face hurts from smiling about that one.
I did not get what you said Good.
As far as my credit card goes, I had by mistake written a wrong check to them, one of my earlier checking accounts which fortunately got closed. They called me up saying that the check had bounced. Thank God it was a closed account so I dint have to pay charges against that. Now I have ensured that I carry the correct check for the pay. I am not doing a phone pay due to some reason. I will make a new thread to discuss this issue. Hope you people will reply to that and give your suggestions and experiences as well. :)
Sounds like an honest mistake Laura, I am glad they worked with you and did not charge you the fees.
Good, great job with your mortgage payments, seems like you have been working hard to get where you need to be, it will all work out in the long run.
Most of the time they will work with you if they think it is an honest mistake. I know people who have sent in bills and intentionally did not sign the check to buy them a few more days on a payment. These days though they will process it regardless.
You mean process without the sign on the check? Oh is it possible?
I have heard of that, they will process a check without the signature and the bank will let it go through, they figure since you sent it, you had the intention of paying it. I have never purposely done it, but have sent a check that I honestly forgot to sign.
I could see them cashing with that intention and the bank honoring it, especially if it is local and it is their bank too.
good, did you make your goal, are you caught up? Hope so!
Will do it in the next two weeks, had a little set back, but will be back on track here in a week or two. So I am good to go.
great to see your on your A Game
Good,
are you all caught up now? hope all is going the way that you plan. give us an update please.
Yes erb all caught up and good to go with my house payments, still have a few late fees but I am tacking them on with the payment and slowly getting rid of them. They will be done here in a few months. Thanks for asking and being supportive. :D :D :D :D :D
Its good to hear that you are catching up on things slowly and steadily.
Has anybody heard of the mortgage protection insurance? It pays when you are out of work. For a maximum of one year this support system helps you.
The accident , sickness and unemployment insurance together known as Mortgage protection insurance helps to cope up with your period of unemployment . Any idea or views on this?
It sounds like that credit card insurance - you pay so much for coverage, but the coverage, when it does kick in, just pays the minimum AND you can't access your credit line during that time.
From how I understand it, most people are late due to factors other than unemployment though - what if your car breaks down and you have to spend $1000 on a new transmission or something? You can't pay both, you have to choose, and the insurance won't help in that situation.
I personally think it's too limited to actually help most people.
Does anybody have such an insurance??
Nope, but it might make sense for a single homeowner.
I know this insurance exists had it on my mortgage before I refinanced, it is a good insurance to have and really does not cost that much, the lender I have now does not offer it. It is very similar to the credit card insurance that your have referenced, it pays if you are off work for any of the above listed reasons. Read the fine print on this insurance, it will not cover most seasonal layoffs and has some catches in place. With all policies, make sure that you read the contract thoroughly and understand what all the policy will and will not cover. For example, if you have your escrow in with your mortgage, it may only cover the loan part of the payment and not the escrow.
You are right Richard, it is a nice insurance to have and but it is equally important to know the coverage and what all is covered under, nothing like assuming you are covered to find out, that item is not listed.
taking out only what you need will stop unnecessary spending.
True erb, we only took out enough to pay off the bills that we wanted to pay off, no extra spending money, we knew that we would be paying on this loan for the next 15 years, so we wanted to keep it down as much as possible. We have 10 years left now, time flies and we are finally hitting a bigger portion of our principle now.
That is how we did it > We only took out what we needed. Things that seem important to buy now won't later when you are still paying back the money. We have mortgage insurance through our bank. It really doesn't cost much but there is a lolt of fine print. One of the biggest being you have to be unemployed for a certain period before it kicks in. I think it is like two weeks. It is good to have but even being laid off for that little period of time can drastically put a person behind.
Smart that way you get all your bills out of the way, just keep plugging away. smart getting the mortgage insurance, you never know, that is awesome that you took that out to protect yourself in the future.
I ahve had enough lessons to trach me to be insured...be very insured. I am continuing to plug away just seems like such a long road.
Well mortgage insurance is a good idea.
I agree, you never know what will happen.
These days with all the financial stress you could fall over tomorrow...no matter how young you are.
I will usually take insurance on a bill if it is offered. This has helped me in the past.
So do we. If it is offered we always take it.
Where I work, we sign those printed forms all the time.