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Hello all, thank you for reading my first post.

I have been doing some online searches and have seen many helpful topics on these forums.

I would like some community advice on how to go about repairing my credit, let me lay it out as best I can and perhaps I might get some valuable advice to help expedite my home buying process.

On my credit report, I have 3 outstanding debts. I paid them all off, as they were small. I have not had my credit report pulled since paying off those creditors in June.

I utilize credit karma and my score has not gone up, in fact, because I had a hard inquiry by a mortgage lender, it has gone down.

This should be a simple process, I've been told to contact those three companies and demand written proof the account has been resolved. However, I also have a judgement from Michael Scott, P.C. I was young and never did anything about the judgement because I didn't have money at the time. In hindsight it was very foolish, but now I am dealing with the consequences.

The judgement was for $4,060. The original debt with Capital One was for $2,000 plus late fees and interest which I believe came out to $2,450. When I try to deal with them, they don't want to settle for less than their current balance of $7,500. I have pleaded that this is 300% more than the original debt, but they do not care.

I could truly care less about the judgement, but obviously it is hindering my ability to receive loans without substantial collateral that I do not have. My goal is to move soon, I am overcrowded in a small home, and would like to upgrade. I make a decent salary and I could come up with more money, but I would like community advice on how much I should consider settling for, and if there are any other ways to purchase a home. My credit score is sitting at 550 according to credit karma. Any and all advice is appreciated, even if it's to tell me something very obvious. Thanks in advance.




This should be a simple process, I've been told to contact those three companies and demand written proof the account has been resolved.


The accounts are paid and closed....they dont have to send you anything after the fact. Even if you had gotten a paid in full immediately after paying the debt, it does NOT remove them from your credit report. They will simply report as a paid collection. FYI...paying a collection account is not postitive...your score will not go up because you paid them. Paid or unpaid...they are both negative and will continue to report for the remaining portion of the 7 year reporting SOL.


However, I also have a judgement from Michael Scott, P.C. I was young and never did anything about the judgement because I didn't have money at the time. In hindsight it was very foolish, but now I am dealing with the consequences.


Then you are stuck with the results of the judgment balance and the accruing interest. Your mortgage inquiry was probably the nail in your coffin...they know you want something and they are going to hold it over your head. What your balance WAS is irrelevant....it is now what it is. You own a home now? They have a lein on it and they will use that power to secure the debt...you will not be able to sell your current home until the lein is paid and the title cleared.


Sub: #1 posted on Mon, 08/12/2013 - 19:42

SOAPLADY SOAPLADY
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