First Time Homebuying, settlement hinderance
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.