Credit and Financing

This may or may not be the appropriate place for this thread.

This is a question aimed at those who have repaired their credit, financed a mortgage or are generally knowledgeable about credit repair. I have searched several online sources and the information there is occasionally contradictory on what the best approach is for my current situation.

Currently, I believe real estate is at a relatively good price. It will likely go lower in the next six months and I’d likely be a buyer within the next year. I can put down 20% (or more if need be) and my monthly income will easily meet the debt to income ratios for properties in my price range. In short, income, proof of income and assets are not a problem. My credit, however, is a problem.

Here’s a brief history. In 2005 I financed a property for my mother. Her credit was shit and her marriage was falling apart and she needed a place to live. She had the down payment and I had the credit so I decided to help her out with the clause (verbal – she’s my mother) that she be responsible for all payments (tax & mortgage etc). My name went on all the loan title docs etc. She was paying on time for a while and then she sort of lost it mentally. She’s been mildly bi-polar most of her life but the stresses at the time were too much for her to handle. She stopped paying the bills on everything, got crazy loans, maxed out her credit cards and basically destroyed her finances. I kept the mortgage current for a while but then her husband decides to divorce her and in the court proceedings the property becomes “community property”, which means no one really owns it. The down payment was from both of them so the judge decided that the property be part of the divorce proceeding. Her and her husband were legally obligated (per a court order) to maintain the property being that they were the beneficial owners. They don’t pay the mortgage. I filed a motion to sell the property and the court allowed me to sell it, but, since my mother lived there, she filed a LIS PENDENS on the property – she basically sued me to keep the property. So the property was basically locked in a legal battle and nobody was paying the mortgage. I was advised by my attorney to not pay their mortgage and that we would deal with repairing my credit later. I don’t regret that decision based on the amount of cash the property was past due. Anyhow, long story short the property goes into foreclosure, I have a serious mark on my credit and I haven’t spoken to my mother since.
Since then, I have sent the court docs which explicitly state my circumstances and the court’s decision to remove the property from my financial responsibility to all three of the credit reporting bureaus. So far Equifax has removed all records of this property. Transunion and Experian have not budged. What can I do about this?
I’m fully prepared to reap what I sow here; it was my decision to finance something for a family member, so in a sense the credit report reflects that decision correctly. Given this, what does this look like in the eyes of a lender? Financially, I’m in a great position to buy some good real estate, but, will a lender even work with me?

I guess those are my two questions: Will a lender even work with me given the credit marks and what avenues can I take to get Transunion and Experian to remove this from my record? Should I hire a lawyer? What about those agencies that claim to repair your credit online? Anyone work with them? Are they worth the money?

Thanks in advance,
Mike

 

If the judge absolved you from responsibility, the credit bureaus must remove the entry. first send a letter demanding removal and include the judges order--this should work. If they don't respond to your letters, hire a lawyer who specializes in consumer law/credit. Shouldn't cost more than $500.00 and should be easy to accomplish.

good luck!

surf