Credit Cards Point » credit card debt

In debt and need Professional Advise please. No Bashers! [credit card debt] [buget]

admin — Thu, 08 Dec 2011 10:30:00 +0000

Have observed this site over the last few years, and have learned more than I ever expected. Now I am in need of some help here. Please remember, we live in Texas .
For its first 2 years and I have our monthly buget. We pay more than what we bring home. I know, shame on me. I have never been late on one of our accounts, and there are no negatives to the spouse or my credit reports as well. We have accumulated a lot of credit card debt. Robbing Peter to pay Paul. In recent years, this is really added.
If I call the credit card company and tell them I need some help, what in your experience can I expect? I need a 1% per month pmt for the next (2) years then all the cards we can make it. I talked to a lawyer BK last Thursday and he suggested Chapter 13 I would like to know the other options, and pay for what I know, we have borrowed. 780.00 monthly for child support will be done in 2 years, and 1200.00 in the nursery will also be around this time frame and done .
What can / will do credit card companies to help you with?
If I pay more, the cards can thay garnish paycheck in Texas? Sue them
Can you in Texas, and what that means? Supplement, Lien on Home?
Can to take them home, vehicles, boat?
Thanks Thanks in advance for your help.

Reply:Everyone is going to have their opinions, but I think BK may be an option – depending on how much you owe. That trustee is going to run your life for 3-5 years, and your money situation is going to get better in 2. Not sure if you can pay out of BK early or not still..
A CCCS may be an option for you if you don't plan on adding any new credit anytime soon. They don't give you the legal protection that a BK does, but might be able to lower your CC paymetns and interest just enough to make ends meet. CCCS can trash your credit if you don't pay attention to it (read some of the posts here for more information), but it also has helped a lot of people in similar situations.
Again, this is really going to depend on how much you owe, etc. Don't just jump into anything – you will need to research to choose your best option.
Any way you can call the CC companies to see if they can lower your interest, or maybe depending on your debt apply for some lower interest cards?

Reply:how much debt are we talking here? 5k? 50k? more?
what income/expenses do you have?

Reply: Have been watching this site for the past few years, and have learned more than I would have ever expected. Now I am in need of some help here. Please keep in mind we live in Texas….
For the first time an 2 years or so I did our monthly buget. We are paying out more than what we Bring Home. I know shame on me. I have never been late on any of our accounts, and there are no negatives on the spouses or my credit reports as well. We have accumulated alot of Credit card debt. Robbing from Peter to pay Paul. Over the last few years this has really added up.
If i call the credit card Companies and tell them i need some help, what in your experiences can I expect? I need a 1% Monthly pmt for the next (2) years on all cards then we can make it. I spoke to a BK Attorney last Thursday and he suggested Chapter 13. I would like to know the other options , and pay what I know we have borrowed. 780.00 Monthly for Child support will be done in 2 yrs, and 1200.00 in daycare will also be done around that timeframe as well..
What can/will Credit card Companies do to help you out?
If I stop paying the cards can thay garnish Paychecks in Texas?
Can they Sue you in Texas, and what does that do? Garnish, Lien on Home?
Can they take your home, vehicles, boat?
Thanks you in advance for your help.
From what I know they can not garnish your wages in Texas for unsecured debt. I know this from when I was defaulted years ago. Texas is just a handful of states that doesn't allow this.

Reply:Unfortunately, at least from my own experiences, if you are current, your creditors won't be interested in helping you at all. They'd prefer you go delinquent so they can ratejack you and add on fees for a few months before they offer you "help". If you don't mind me asking, what are your balances and what creditors are they with.

Reply:I don't know the particular laws of your state, but just want to wish you the best. I think many of us here have been in similar situations.

Should I be concerned. [credit card debt] [car payment]

admin — Thu, 03 Nov 2011 13:00:00 +0000

Hello to everyone,
My wife and I have to buy a house and a mortgage on the search. We combined $ 98,000. We have a car payment of $ 515 and we have no credit card debt. We have $ 15,000 in savings, $ 50,000 in assets (401K, etc.) and our Fico are: 714 677 women, 676 750 684 Myself, 677th Only bad things on credit report are a few mistakes I have 6 years ago, were the collections, but were worth it.
My question is-should I make a good loan worries?
Thanks!
P.S. The sale price of the house is $ 278,000, and we share 20% down so we are about to borrow 223,000.

Best Answer: I'd say no. Most people don't stay with a company for 20 years anymore, so I don't think you need to worry about age discrimination until you are job hunting at age 60+.

Reply:You will be fine provided no surprises pop up.
20% down put you in a nother category. Lenders love when the borrower shares the risk.
I would look at conforming as the rates will be competitive and there will be no mortgage insurance tied to you loan.
As far as approval goes though the above post is correct you should qualify for about everything that is out there.
Take Care
Welcome to the forum
Brian

Reply: Hello all,
My wife and I are buying a home and have started looking for a mortgage. Combined we make $98,000. Is this salaried/W-2 earnings or is there any commission/self employed income? We have one car payment of $515 and we do not have any credit card debt. Do you have credit cards but pay them in full each month? If not, what other consumer debt do you have? We have $15,000 in savings, $50,000 in assets (401K etc) How much of the $50K is vested? You will be able to count 70% of it towards reserves. and our FICOs are: wife 714,677, 676 Myself 750,684, 677. Where did you obtain your scores from? The only accurate consumer site that I am aware of is MyFICO.com. There you get true fico scores. Lenders will use your wife's mid score of 677 since they use the middle score of the lower scoring borrower. Only bad things on credit report are a few mistakes I made 6 years ago that went to collections, but were paid off. How long ago were they paid off? In general, old collections will not impact your ability to qualify for a mortgage.
My question is- should I be worried about getting a good home loan?
Thanks!
pw
First let me welcome you to the Mortgage Forum. Enjoy your time here and we have many pros here that can give you good information. Depending on how much you are looking to spend, it appears that you should be able to go either conforming or FHA/VA/USDA.
guy
Forum Moderator

Reply:No, you should not be worried.

NFCU Chapter 7 or 13 and Cross Collateralization HELP!! [credit card debt] [layoff]

admin — Mon, 24 Oct 2011 03:00:00 +0000

It kills me to even have to consider this…
I lost my job due to my entire office closing in July. I am on unemployment and have not been able to get rehired in a new position yet.
I have ALOT of credit card debt $70,000 + and an auto loan that is about $30,000. After layoff- I tried to open my own business and alot of it was funded with my cards. And it is virtually impossible right now.
I am still making all of my payments (mainly from my savings account) and that is dwindling. I have gone from making $75,000-$85,000 a year to getting $400 a week unemployment.
My credit union is NFCU- and they have been wonderful (Despite jacking up my interest rate on a line of credit from 12.5% to 15.5%-)
All of my payments are still current as Bankruptcy is not even an option until I find a new job because EVERYONE does credit checks now and a Chapter7/13 is seriously going to hinder my chances of getting hired.
Sadly, 36,000 of my cc debt and my 30,000 car loan is with NFCU.
Now I know that everything is crosscollateralized. I REALLY NEED TO KEEP MY CAR (I am in sales and it requires a solid car)…
Chapter 7 I will more than qualify for if this keeps up, and I will have a hard time in this economy finding a position that pays even half og what I made before.
Chapter 13 is what I would prefer, obvioulsy I would need to be gainfully employed….
Assuming that I find a new position, if I was to file Chapter 13 would NFCU STILL take the car back (because I know they would only be getting pennies on the dollar for the credit card debt)??
Chapter 7 makes the most sense to me in a way, but I could not afford to reaffirm all of my debt with NFCU which means they will take the car. And if I found a position where I could afford to reaffirm all the debt with NFCU, would a trustee even allow you to do that? Declare Chapter 7 on 34,000 worth of debt and reaffirming 66,000(Credit Card, LOC, Auto-
with a credit union? It sounds laughable I guess.
I guess my main question is whether Chapter 13 works differently with cross collateralization and a credit union
Thanks for your help guys-

Reply:Welcome to CreditBoards! Come on in and make yourself at home. You're in a mansion of information! It's a big, big place and we're here to help you find your way around.

Some helpful tips:

Your post may not get a reply right away. Don't be discouraged, this is a very busy board. If it falls off of the first page, feel free to reply to your post yourself, with the word *bump* in the text. This will *bump* your post back up to the top of the board.

If you haven't yet, take a peek at at theNewbies Section. Everything that you need to know is in that forum, for the most part! It's a lot of reading, we know, but this credit stuff can have a steep learning curve. In no time, you'll be posting like the pros!

Please read the stickies that are pinned in the top of this forum. You will find general reference information pertaining to the forum, as well as important announcements from the CB owners.

For reference purposes, we have a Database Forum where you can find various caselaw, state law information, letter templates, and general reference material. This information can be very helpful when it comes research that pertains to consumer protection.

If you find that someone is discourteous to you, use the REPORT button at the bottom of every post – that will ensure that a moderator or admin looks at the post and decides if it is against the TOS.

Off -topic posts should go in the General Forum.

The Search function can also be a wonderful resource to find more specific topics. The archives cover alot of material and often times, you may find additional information pertaining to your questions.

If you are having difficulty finding something, navigating, or have any other questions, please feel free ask for help. That's what we're here for!!

Again, welcome to the CreditBoards family!

CB Admin: LKH, Pam, radi8, breeze

CB Mods: CargoJon, Chris in CA, cotterpin, CramItCCCAs, Cristy, fla-tan, hardpull, MarvBear, pryan67, psp, stealthmidget, Stryker, yourguide, ZeRo_C0oL

Forum Leads: Brian B The Loan Professor, cedski, DallasLoanGuy, guy, hoapres, hurricanesfans27, Lighthouse84, Linx04, Neen, orangecrush, Peekaboo, TeeSharice

Reply:Nope…works exactly the same. The CU will not ever give you title to the car unless all debt to them is paid in full.
Given your high CC debt to them the amount you would have to pay to obtain title is obviously a non sequitur.
You can keep your pmts current and keep the car but you won't ever own it. Therefore a more realistic goal would be to buy another car ASAP….either pre-bk or post-bk. Do NOT borrow the $$s from the CU to enact this transaction.
HTH,
sm

Reply:
Going through the same thing with Navy Fed, and because of cross collateralization, they will repo your car if you default on any secured or unsecured loans. Kind of defeats their argument for the higher interest rates…

Reply:Just a note to everyone using credit unions: cross collateralization can be a nightmare. But if to or more people are involved BOTH must be on ALL debt in order for ALL debt to be compromised.
If debtor A buys something and only has debtor A's name on it then only accounts and other debts can be compromised. If debtor B is only on some of those accounts then those that debtor B are on can not be compromised due to debtor A defaulting on debtor A debtor only.
Example: Debtor A buys auto and 1 year later meets debtor B. At that time debtor A and B open accounts and finance another auto. Debtor A and B part ways and a year later Debtor A defaults on his/her only single account. However debtor B has made all the payments due on the second auto. The CU can only touch the accounts that are listed in debtor A's name only – they can not touch the accounts listing debtor B because debtor was not a party to the debtor A's transaction.
Now the CU will tell you over and over that they can BUT just because they say so does not mean they can. This is from an actual situation and debtor B won.
Also an interesting read is http://pubcit.typepad.com/clpblog/2006/09/…is_the_rep.html ……

Reply:Thanks everyone. Hi guy, in my case it is just me, no cosigners, ect..
I am thinking I would probably take the route of getting my car refinanced by another company. I have an excellent interest rate with NFCU- 5.5%! I would probably refinance with another company 6 mos before filing. Most of these Car loan financing companies, eloan, ect will have no problem letting you keep the car once you reaffirm.
They have been wonderful to deal with and I feel really guilty about the credit union aspect of my possible Bankruptcy.
And I don't think there is any way a lawyer would recommend me filing Chapter 13 anyway, with all of my debt. It would actually make ME feel better on not like a deadbeat.
I really hope I can find another way to survive all this.

Reply:You will survive..there is no doubt…
Hang in there..I just filed CH7 as well and am dealing with NFCU on a credit card and car loan

Reply:Found your post in a search. How do you know if NFCU has done the cross collaterization? Our lawyer said there could be a chance they have not done it yet and once filed they can not. How can I find out if it has been done?
We have a CC $19K in husbands name only
Car loan $21K in husbands name only (value about the same)
Then I have a CC for 20K in my name alone.
All from NFCU. Yes we learned our lesson about that now! We also have a 2nd on the house at NFCU. LOL

Reply:It was cross collaterized the minute you opened your cc accounts and took out the car loan. It's SOP for NFCU and part of the TOS.

Reply:I wanted to clarify since I am in the same boat. I am about to BK7 or BK13 NFCU for about 40k in credit card and loc debt. We also have a 25k auto loan.
I know they will cross collateralize in BK7. So according to this post they would also cross collateralize in BK13?
So I am guessing I would have to give it up in the BK in either case right?
I would refinance but we are about 9k upside down on the car.

Reply:
Correct
Tammy

Credit Card Debt [debt consolidation plan] [credit card debt]

admin — Wed, 10 Aug 2011 15:30:00 +0000

Whats the best thing to do in my situation? I am currently about 38k in credit card debt due to a house i owned gone bad. I am currently trying to short sale the property but i have all this credit card debt and just paying the minimums is killing me financially.
Would it be best to file bankruptcy or going through a debt consolidation plan?
Mike

Best Answer: debt is something that many people struggle with and if you let it get out of control it will consume you and your life. Learn the snowball affect. That means start paying off you lowest amount first. Take the amount and pay more than that. and while doing this you need to pay the minimum of the other debts. then when the lowest amount is paid off you take that amount you were paying for it and roll it into the next lowest debt. this is what we in the finance industry call the snowball effect. It works and works well. Good luck paying off your debt and don't let it consume you.

Reply:I'd be very wary on DCP and/or debt settlement programs. Sometimes they do more harm than good, especially where your FICO is concerned. Read up on the stickies at the top of this forum and look into BK in detail. You need to be sure about your exemptions, especially if you want to keep your home and vehicles, and to see if you qualify for BK. Good luck.

Reply:Debt consolidation won't do a thing to protect you from a deficiency suit by the mortgage lender. If there is a possibility that they'll pursue you- for example the short sale falls through and they foreclose- the BK might be the cleaner option.

Old debt, need advice [credit card debt] [medical bills]

admin — Sun, 10 Jul 2011 14:30:00 +0000

Hello all,
Im new here, and hoping to get some advice. I'll try to keep things short and simple, and if you can help at all, great!
In college i accumulated alot of credit card debt, and since then, i ve gotten quite a few medical bills that I could not pay. This is all on my credit report, and needless to say, my credit is ruined. Now most of this debt is between 5-8 years old, and some has already "disappeared" from my credit report. Some though, will not until 2006, 2007, 2008. I am still relatively poor, so just paying out about $12k is not an option.
Now, I may have the recent medical bills coming off my report as I was recently accepted into a "Free care" program at that facility, and they often consider old bills paid if you are accepted, i ll know for sure soon.
As for the other debt, most is credit cards that are several years old. I get no collection calls, letters are pretty rare, and they are all "charged off". However, I would like to better my score by getting that stuff off their, at least the 2007-2008 stuff, so that by the end of 2006 all the bad stuff should be off my report.
I've done my homework, and many sites recommend I demand validation of the debt, and challenge it with the credit bureaus. If i read things right, if they do not validate the debt within 30 days (and this can happen for many reasons) it has to come off my report. IF they do validate, I can try to get a settlement for 35-50% of what is owed. And I should pay them by money order only if they put it in writing that they will remove everything from my credit report, or at least mark it as paid in full.
MY QUESTIONS ARE: Considering how old this debt is, am I taking a big risk trying to fix things up now? Should I just suck it up that i cant get a credit card, home loan, car loan, etc till 2008? Or, is validation and settlement a good and relatively safe thing to do with debt this old? If i try the validation and settlement stuff with debt that will stay on my report till 2007-2008 can it have an adverse effect on the debt that should disappear in 2006?
Please steer me right all?
Thanks for reading!

Best Answer: 20 MAy 08

You've got a very good point! Paying the debt now will get you nowhere. The stain will remain on you report until it reaches year #7. You are better off waiting the remaining 2 years, if what you owe is not a substantial amount.

Keep in mind, if you owe a substantial amount, let us say over $5K or $10K, the creditors (or collection agencies) might try to sue you. But lesser amounts seldom are brought to court, because it is a costly endeavor.

If I were you, I would hold 2 years. But be aware, potential new creditors may not loan you money. No guarantees they were going to do it anyway (even if you paid the debt) with stains in your credit report (and the credit market as it is today).

Reply:I would suggest DV for the CAs…for the OCs…verification…and if you DO pay, make sure you get IN WRITING that they'll delete if you pay

Reply:No new thoughts?
Sorry if I am badgering, but I am trying to be careful about how I proceed. Thanks!

Reply:THanks for the responses! I am in PA, and always have been btw.
i have 7 negatives on my report for medical bills, these may go as i stated before.
I have one accoutn with CitiFinancial that is from late 99 for about 4k
I have one neg with a hospital out of town from 2000
one with a cable company from 2001
one with NCO marlin from 2003
one with a university from 2003
what would you guys recommend i do on each of these? I do have some cash saved up to try and get things straigtened out. Should i dispute and demand verification, then try to settle or??
Thanks!

Reply:Just to give you some encouragement, I have only had a handful of accts removed from both DH & I reports. However, these were high $ accts. So I have spent about $225 on mailing but have removed about $8K on DH & $15K on my reports and that is with not duplicating any accts, even if removed from multiple reports, but is counting accts for each that are joint. I haven't even touched most medical accts yet.Medical is what really taked our scores because of no ins. I just discovered CB late April & didn't start on accts until June.
All of the debt I got removed was out of SOL so neither of us could successfully be sued for the debt. You need to determine which accts are past SOL for suing. Utilities are usually 4 yrs by UCC. Medical can go under the UCC as well, so 4 yrs, as a service. However, some states have shorter limits. I discovered recently that NC only considers medical collectible for 3 yrs (backed by caselaw). If you start with stuff you know is past SOL for suing, then it won't matter if you wake them up because all you have to do is answer the lawsuit and state the debt is out of SOL. You can get tons of help here but I do recommend reading Psych Doc's seminars so you understand your reports and can classify accts as to ways to get rid of them. I put small sticky notes on my current reports so I can keep up with possible dispute methods.

Reply:While you're considering what other steps to take, first go ahead to opt-out now.
No sense in letting the whole world know of any credit moves or score changes which will soon be occurring.
BTW, you mentioned settlement and then also PFD (pay for delete).
FWIW, I think that you'll find that relatively few creditors will agree to a PFD for just a settlement balance. That's usually reserved for actually paying the account in full, including all interest and fees it has accrued.
Many creditors will refuse to do a PFD in any case, but you can always ask.
It's always fine to ask for the best possible outcome, to shoot for the moon when you're ready to pay the account, but don't be surprised if the creditor won't negotiate for any other benefits paired with a settlement discount.
Also, always make sure that you have more than enough saved up to cover an account before you ask for a PFD and/or settlement figure. To have any negotiating position at all, you're looking at making an immediate full payment as soon as the necessary written commitment has been received from the creditor detailing what's they've agreed to do for you. They won't want a series of payments.
Read, read, read on CreditBoards. Then read some more.
Especially, get to know the Newbies' Forum inside and out. There's a wealth of background and foundational learning there. Read PsychDoc's weekly transcripts — they're in the Stickies area at the beginning of the Credit Forum.
When you don't quite understand something, make a personal note of your question and where you encountered it. Further study will soon let you answer most of them by yourself. There are glossaries for most of the acronyms and abbreviations you'll find are used here.
Getting into a credit jungle didn't happen overnight. Learning how to get out of it and making permanent personal changes so it can't happen again in the future will take time. It's not an overnight process but if you invest the necessary time to study and plan and correspond, it can improve a great deal.

Reply:Read this page
Click here
This link is full of all the stuff you need to know in your first year here. I have made leaps and bounds in just the past few months by disputing with the CRA's only. Some 20+ deletions from my file without contacting ANY collection agencies. The items I have that did not come off from disputing I will do a 1-2 punch.
CAUTION!!!!! MAKE SURE YOU UNDERSTAND THE CONSEQUENCES OF WAKING SLEEPING DOGS THOUGH. i HAVE A FEW THAT i AM JUST LEAVING ALONE UNTIL THE 7 YEAR REPORTING PERIOD END FOR THEM IN DEC. 2006.
gOOD LUCK AND WELCOME TO CB!!!

Reply:What state do you live in???

Chapter 13 question [credit card debt] [chapter 13]

admin — Fri, 17 Jun 2011 01:30:00 +0000

Hello, I hope someone can answer this? I was thinking of trying to offer settlement with all my creditors. Was laid off for a while and went back to work making half what I had made, racked up a lot of debt but can borrow money to settle but may file Chapter 13. If so do I still have to pay the IRS like I would f I settled? I have probably $50,000 in credit card debt and can get settlements of 10% to 20% of the debt if I pay it now. I cant file Chapter 7 because 5 years ago I filed after having cancer and thousands in medical bills. Thanks for anyones advice.

Best Answer: You don't need to make more money you only need to change the way you get money. You father needs on a Good Trust attorney. Essentially he forms a trust and sell the company to it the trust is protected from any suits against your parents. The trust can form it's own land holding company including a rental company that can buy you parent's house and rent it back too them for a dollar a year. Just make sire you have a good Lawyer doing the paperwork, you can feel free to contact me for the name of mine. He's the reason I can live in a 56m house while claiming only $95K annually in income.

Reply:Welcome to CreditBoards! Come on in and make yourself at home. You're in a mansion of information! It's a big, big place and we're here to help you find your way around.

Some helpful tips:

Please read the stickies that are pinned in the top of this forum. You will find general reference information pertaining to the forum, as well as important announcements from the CB owners.

Off -topic posts should go in the General Forum.

If you are having difficulty finding something, navigating, or have any other questions, please feel free ask for help. That's what we're here for!!

Again, welcome to the CreditBoards family!

Reply:
If you filed BK 5 years ago you can't file again for (I think) another 3 years.
BK13 is your only BK option (others will correct me if I am wrong). You won't get 1099's if you BK13. You will get 1099'd if you settle.

Reply:Thanks. If I settle I will have to pay thousands to the IRS that I dont have either.

Can borrowers get away with "hiding" their debt with BT's? [creditors report] [credit card debt]

admin — Thu, 09 Jun 2011 03:30:00 +0000

Just out of curiosity (as I'm sure this is fraud and I would not try it) – a borrower could get away with using balance transfers substantially hide their revolving debt. Many of us here at CB monitor our reports on a monthly if not weekly know so many of us the exact day creditors report balances.
They're reported typically include statement that theoretically a potential borrower with credit card debt could easily be transferred “in” all or most of their debts in a certain card with high limit / low balance with a BT / Cash-Check Offer closes immediately afterwards so reporting $ 0 (or previous low balance) until the next date 30 days later.
This enough time for the previously “exhausted” cards on their new $ 0 balance (thanks to BT from the – now exhausted, but the reporting $ 0 – credit card) – Report and if time right, this would be a window allow time which you have little or no debt, all depending on how much was transfered.
My guess would be that the insurer / bank calls in each creditor credit check. Or they use a kind of insider credit report looks like in real-time balances? Or it could be a “loophole”?
Any professionals here know?

Reply: Actually, thinking about it… you are not committing any type of fraud. The companies report the balances to the credit bureau claiming that it is accurate for that date. When you sign, you are signing that it was correct for the date reported. Credit cards are revolving balances. They can go higher or lower. My credit card balance can change based on whether I put gas in the car today.
Every month HSBC Orchard Bank reports my credit card at a $10 – $20 balance. Is that the balance all month? No, but I always pay it off. I use the card so that I don't have to go into the gas station but rather pay at the pump. They are reporting the balance on a certain day. Can they opt to report on another day that month? Certainly.
Also listed on all the wonderful mortgage papers are you 401K balances, checking accounts and savings accounts. How many of those are accurate more than a day or two after you fill out the papers?

this is absolutely false.
when you sign your loan application you are to disclose all debt. not just debt on a particular day as reported by credit report..

i have seen enough.

i am not going to sit here and watch people go over hypothetical fraud situations.

this thread is closed.

Reply:Actually, thinking about it… you are not committing any type of fraud. The companies report the balances to the credit bureau claiming that it is accurate for that date. When you sign, you are signing that it was correct for the date reported. Credit cards are revolving balances. They can go higher or lower. My credit card balance can change based on whether I put gas in the car today.
Every month HSBC Orchard Bank reports my credit card at a $10 – $20 balance. Is that the balance all month? No, but I always pay it off. I use the card so that I don't have to go into the gas station but rather pay at the pump. They are reporting the balance on a certain day. Can they opt to report on another day that month? Certainly.
Also listed on all the wonderful mortgage papers are you 401K balances, checking accounts and savings accounts. How many of those are accurate more than a day or two after you fill out the papers?

Reply:That seems risky at best… You never know who along the way is going to pull credit, or when!

Reply:Techinically, I suppose that could work. I do not think they will call each creditor and verify balances.
However, when I applied for my mortgage they listed each and every tradeline that appeared on my credit report along with a balance for each. When you sign, you are signing that the information is grossly correct. By signing it but having done what you are describing, you are commiting fraud.
I wouldn't attempt that high wire act.

Property bought with credit cards [business credit cards] [credit card debt]

admin — Mon, 11 Apr 2011 09:30:00 +0000

Lets say a person uses buy balance transfers from credit cards as a business investment property with.Say he makes the payments with that money buy a triplex. This would be unsecured debt correct? So, now saying, can he do “some problems have to pay the 80% secured debt of the bank's mortgage, but paying for some reason his credit card debt.
First question, can the credit card company this house to take away from him?
Second that is, if the property is a private limited company with the title that belongs to the named owner?
Is there any ways to protect that person to the credit card companies from seizure in this building who is also the default credit card?

Best Answer: I guess it depends where you live and where this rental property is. Where I live, we only take bank draft or a personal cheque for real estate transactions over $10,000. We can't do cash or credit card.

Also, the interest rate is too high. If you have the cash, use the cash, or get a line of credit. Even a line of credit will have a better interest rate than a credit card.

Reply:I own 7 small apartment building and most of these were purchased with money borrowed from my HELOC and credit cards. When you purchase an investment property the bank will want to see proof of funds for the down payment. You cant just go borrow 10k from credit card, put it in your bank account on monday and let the loan company check your statement on tues and show that you have the funds. You have to show the funds are seasoned meaning that you have to have the funds in your checking account for at least 60 days. We were able to show that we had the funds using stocks, mutual funds, retirement accounts and 401k and then we used the cash advance on the card to get the actual funds for the down payment.
credit card debt is unsecured so if you default on your credit cards then the bank can file a lawsuit against you, and then get a judgment against you and then try to collect on that judgment. that collection can be garnishment or liens placed on property that you own.
It sounds like you want to use a business credit card that you did not PG to borrow money to buy a property and then are thinking about defaulting on that credit card since there is no pg but you still get to keep the property. That is just bad karma coming to you if that is what you want to do.
You are not going to get a lender to lend money in the name of a new llc. Ain't going to happen. yes you can buy it in your name and then turn around and quit claim deed the warranty deed into the name of your llc. Technically that does violate the due on sale clause of your mortgage and the bank could call the loan due in full. Most people do that because if they do a title search for assets that you own in your name then they will not find this property since it is in your llc. But any half decent title man will see that you quit claim deed this property into an llc instead of selling it and they the check articles of incorporation and see that you own the llc and they are going after you. Besides any half decent attorney that is suing you personally should give you a questionaire asking if you own or have interest in any real property and as parter in llc you have interest so you have to tell them yes.
So in conclusion buying houses with credit cards is a viable way to purchase investment properties if you don't have lots of money. Don't buy the house with credit card debt with intent to default on the debt and keep the property. Seriously bad juju coming you way if you do that.

Reply: I do not know about CC fraud but do know that if the intent is to use enough on CC's to put as a down payment then that would have to be disclosed to the lender of the mortgage or it would be fraud. If you did disclose it they would likely turn you down.
B
Would it be fraud if you just put everything on credit cards for 3 months while you collected your income as a down payment?
There seems to be a fine line there..

Reply:I think intent is the issue here.. and most credit card companies will not file on intent unless you've never made a payment and you ran it up the second you got it. Otherwise it would be impossible to prove.

Reply: Is it just me or does this sound like fraud?
Buying a house with credit cards, or buying a house with business cards that you could conceivably charge off?
Buying a house with a CC isn`t in and of itself fraud. In fact, that`s exactly how I bought a home earlier this month. Now, if I had *intended* never to pay back the CC company, THAT would be fraud, but
as long as I pay them as usual, what`s the problem? Now, in the event I fall on hard times(loss of
income, illness, ect), and start falling behind, fail to make timely payments, accumlate "lates", and, in
general, become unable to pay, that wouldn`t be fraud either, anymore than the millions of folks who, for whatever reason, can no longer keep their heads above water debt-wise aren`t trying to defraud anyone. An unsecured line of credit is just that, unsecured, and due to the higher risks, carries a higher APR. Unsecured debt is unsecured debt. COs ocassionally do happen. Often, to good people. Thems the breaks.
As for the OP, it *sounds* to me(and I COULD of course, be completely wrong) like maybe he`s finding
himself in too deep, may be unable to pay both the secured debt and the unsecured debt, and was wondering wether paying the secured debt, and letting the unsecured debt CO, would put him
in danger of losing the home. To this, I would echo others` advice here and advise OP to talk to an
attorney.

Reply:It would be fraud if you answered the question
"Is any part of the down payment borrowed" with a lie..
If you told the truth you probably wouldnt get the loan.
Brian

Reply: Is it just me or does this sound like fraud?
Buying a house with credit cards, or buying a house with business cards that you could conceivably charge off?

Reply:Is it just me or does this sound like fraud?

Reply:As a datapoint..
Generally, credit cards are unsecured debt. Not secured debt. Unless they can prove bad faith (i.e. you go run up your credit cards and NEVER pay) – all they can do is get a judgment against you (but it will end up being twice what you originally paid.
Now – to that end, if you don't pay – as Cedski said – your investment properties will be what they find – however, if you pay off 100% of it with a business card and then quit claim it to the LLC or have the LLC purchase it with proceeds in the bank (i'm not sure they'll care where it came from in a cash transaction) – then it can be titled in the LLC's name and perhaps safe.. but real estate lawyer might be better with that..

Reply: Lets say a person uses balance transfers off a business credit cards to buy investment property with.Say he makes the down payments with this money to buy a triplex. This would be unsecured debt correct? So now lets say he doesnt' have any problem paying the 80% secured debt from the bank mortgage, but for whatever the reason, doesn't pay his credit card debt.
First question, can the credit card company take this house away from him? In most if not all states an investment property is not judgement proof so if they got a judgement it could be enforced against an investment property.
Second, what if the property is titled in an LLC who belongs to the said owner? You won't find a lender who is willing to write a loan for an LLC that has no history of buying or owning properties…while you can quit claim it into the LLC you would be violating the terms of your note…..and while I am not a lawyer…..I do believe you would be piercing your corp shield by doing this making it easier for a judgement to be enforced.
Is there any ways for the person to protect the credit card company from seizing this building in the even of credit card default?
You need to speak to a real estate attorney

Reply:I'm just throwing this out there, but I really don't know–just something to think about….
I would think that if the person maxes out their CC for the DP, the mortgage company may see that on their report when they look it up and deny the mortgage if all the CCs are maxed out and the DTI is too high. The mortgage co. will also want to know where the DP came from if it hasn't been in the bank for 2 months or more. So i don't know if this scenario would even play out?
Curious as to what the experts think?

What's the first thing I should do? [sears master card] [credit card debt]

admin — Sun, 03 Apr 2011 01:30:00 +0000

Location: Currently, Ohio. Customs debt in NY
Card: Sears Master Card (ISIC Card)
Amount: $ 13.800
My sister was apparently a $ 7,500 credit card debt that they could not begin to pay because their income is only $ 1,100 a month. (Why they gave her a card a mystery to me.) She is 72 years old and living on SS and a small $ 400 pension.
They persuaded it allows them to withdraw $ 200 per month for 6 months from their current account and assumed that they would pay the $ 1200 $ 7500 We all know how that went. The very next statement was, they said they are owed $ 8,500 and its interest rate was 31.49% and your minimum payment was only $ 520.
I aware of this situation 2 months ago, when we moved into a nursing home. We have to sell their house, but she needs every bit of that money will be for the care home.
The bills to pay for this card forwarded to the nursing home, but so far Citi card does not know where she is. I have full power and wants to open some dialogue with these thieves, but do be careful. I do not think they find out where she is. We are willing to pay anything to Citi, but I will not let it take for $ 13, 800.
QUESTION: What first steps should I take?

Reply: It is MEDICAID, not MEDICARE.
MEDICAID pays for long term custodial care in a NH. Medicare pays for SKILLED care, like skilled nursing and rehab. Two different programs.
It is an often confusing thing….Medicaid is a means tested program for low income people, older people and disabled people, regardless of age.
Medicare, an entitlement program you can qualify if you worked long enough…combined with Social Security…it is a health insurance program.
I assume right now she is private paying with the finds from the sale of her home.
Re Medicare vs Medicaid – apologies, but that wasn't the way it was explained to my father and me. We were told that as long as my grandmother had assets, she was expected to contribute some large percentage to her nursing home costs, with the remainder to be picked up by Medicare. When her assets ran out, she would be covered by Medicaid. Maybe this was related in some way to the fact that she was transferred directly from the hospital (where she had been for pneumonia) to the nursing home, and they considered the initial part of her stay in the home as "rehab"?
QUOTEPre pay, an irrevocable funeral trust is a most excellent way to spend-down assets. I know it is morbid, but funeral aren't cheap anymore, unless you choose cremation, and thats at least $5-600.
Here in NY, even a cremation could easily run a few thousand dollars. My grandmother's funeral was simple – burial, no cremation – and with the cemetary plot already paid for still came out to nearly $9,000. I will hopefully have a long ways to go before my own funeral rolls around, but the experience with my grandma definitely made me want to have everything arranged and paid for well in advance.
WOW, that is high! I read somewhere a local funeral home here in the Cleveland,OH area will do a simple cremation for about $600.00.
It is different when you come to a NH from a hospital. Medicare pays 100% for 20 days of rehab, I think it is 20 days. Then you have to start paying a portion. At that time for lower income people, meaning Medicaid eligible..Medicaid will pay if you qualify, and it can be a long process to get Medicaid. Trust me, I've seen it.
It maybe best for the OP to seek some legal advice here.

Reply:A little off topic, but may I just add –
If she's in the nursing home for good, you can try to pre-pay her funeral expenses out of whatever she has BEFORE Medicare takes her last dime. We did this for my grandmother before she went into the home (in fact, were encouraged to by the nursing home social worker), and I can honestly say that while it may seem a bit morbid, it made life infinitely easier when she passed on – no decisions had to be made in haste, and there was no financial burden. Since you have PoA, you can make these arrangements on her behalf, if you'll still be allowed to do so – not sure what the rules are if the person is already IN the home.
You might want to speak to an elder care attorney, but I'm thinking that Medicare is not going to want to surrender one thin dime to any of your sister's creditors. After all, they'll go looking for assets transferred to relatives as much as five years back. So it's possible that Citi is just out of luck as far as collecting anything on this account, and they simply need to be told so in no uncertain terms.

Reply:She has to get her assets down to $1500.00 before MEDICAID will accept her. BTW, I am a social worker in long term care in Ohio. I work for a Medicaid program.
The CA can go to court and get a chunk of her money as it is in an account in her name. You can't transfer the money to yourself or anyone else as that would make her ineligible for Medicaid.
I'd first have her mail sent to a PO box. I assume they don't have a phone #, but they can easily find out where she is as her mail as being forwarded to the NH.
Is she competent?
You may have to seek legal advice, so they don't take all your sister's money out of her acct.

Reply:She is in the home permanently. Medicare won't kick in until she uses up all her own money.

Reply:It sounds like the payments are behind, at this point. Is she in the nursing home for good, or is this something temporary? Is she going on medicaid?

Reply:Welcome to CreditBoards! We hope that you find what you're looking for here.
Some helpful tips:Your post may not get a reply right away. Don't be discouraged, this is a very busy board. If it falls off of the first page, feel free to reply to your post yourself, with the word *bump* in the text. This will *bump* your post back up to the top of the board.If you haven't yet, take a peek at out Newbies Section. Everything that you need to know is in that forum, for the most part! It's a lot of reading, we know, but this credit stuff can have a steep learning curve. In no time, you'll be posting like the pros!If you find that someone is discourteous to you, use the REPORT button at the bottom of every post – that will ensure that a moderator or admin looks at the post and decides if it is against the TOS. Off -topic posts should go in the General Forum.Again, welcome to the CreditBoards family!
CB Admin: LKH, Pam, radi8, guy
CB Mods: cotterpin, CargoJon, CramitCCCA's, fla-tan, MarvBear, psp, pryan67
Forum Leads: TeeSharice, orangecrush and Four20Nik

OC validated now CA calls constantly [credit card debt] [hoopla]

admin — Fri, 01 Apr 2011 14:30:00 +0000

Hi all, I am new to this forum, but not so new to the collection process.. I have been ignoring a problem because I cannot seem to find an answer…
I stopped paying the OC in May of 2003. They did a CO in Jan 2004.. after much hoopla with CA's to validate OC sent a detailed verification in Nov 04. Which I assume means they did not sell the debt.
I live in Arizona, so when looking at the SOL for credit card debt I am confused what the time limit is… 3 years would be good for me Last time I looked open ended accounts are 3 years. Written contracts are 6. So my first question is which one am I looking at for this Credit Card?
But, the real question at this point is since OC sent the verification, how do I get the dang CA off my back. They call 2 times a day. And If I answer the call, no one is there.. if I let it go to voice mail they leave a recorded message. Every once in a while a real person will leave the message but not very often. Plus, they send me a collection letter one to two times a month.
At the top it says Client: OC my experience has been with the other ones (there are 2 others that bought the debts) that it says Original Creditor: OC So I am guessing that the OC still owns the debt.
Any suggestions on how to get this CA off my voice mail?? I of course do not want the OC to sue me either.. the debt has doubled due to "fees" since I stopped paying it in 03.
OH, BTW: none of the collectors are reporting on my Credit Report.. As a matter of fact, even the ones I settled with stopped reporting, so they do not show up.. The 3 OC's that are left are reporting tho. (not the CA's) Hope that made sense!
Your help is much appreciated.
guy

Reply:The "Truth in Lending Act" is a federal law. Its also known as TILA. TILA defines credit cards as an open account. So you can use federal law to show the cc is an aopen acct and therefore falls under the 3 yr SOL for your particular state

Reply:[quote name='guy' date='Jun 27 2006, 08:20 PM' post='1606157']
[/quote]
Howdy guy. Wychat's website has the states SOL's you can also find it on the AZ AG site as well.
http://whychat.5u.com/States/states.html
[/quote]
Thanks, I have been to that site… I was wondering how or where you got the info that a Credit Card is considered an open agreement rather than a written contract. . .
Cheers

[/quote]
Yeah, i have a link in my favorites, let me go look it up and i will post it for you!

Reply:[/quote]
Howdy guy. Wychat's website has the states SOL's you can also find it on the AZ AG site as well.
http://whychat.5u.com/States/states.html
[/quote]
Thanks, I have been to that site… I was wondering how or where you got the info that a Credit Card is considered an open agreement rather than a written contract. . .
Cheers

Reply:
Howdy do! Ok I am in AZ too, the SOL for a credit card is considered an "open" agreement and has a 3 yr SOL limit on it. Hope that helps!
Thanks for that info guy, how did you determine that? I mean, where did you find that info Not that I don't trust you, I just like to verify, especially because that would mean that THIS OC is SOL.. (in more ways than one)
At least I think. Last payment to them was May 03 , they did a charge off Jan 04
Thanks
guy
Howdy guy. Wychat's website has the states SOL's you can also find it on the AZ AG site as well.
http://whychat.5u.com/States/states.html

Reply: Howdy do! Ok I am in AZ too, the SOL for a credit card is considered an "open" agreement and has a 3 yr SOL limit on it. Hope that helps!
Thanks for that info guy, how did you determine that? I mean, where did you find that info Not that I don't trust you, I just like to verify, especially because that would mean that THIS OC is SOL.. (in more ways than one)
At least I think. Last payment to them was May 03 , they did a charge off Jan 04
Thanks
guy

Reply: I live in Arizona, so when looking at the SOL for credit card debt I am confused what the time limit is… 3 years would be good for me Last time I looked open ended accounts are 3 years. Written contracts are 6. So my first question is which one am I looking at for this Credit Card?
I am an Arizona resident as well, and am struggling with this same question. I have not been able to find anything that is concrete one way or the other.
The answer to this question is really important to me as well, for similar reasons that the OP outlined. Any concrete clarification would be most appreciated!
BTW, CB is GREAT! I'm so glad I've found a community/resource such as this, and am currently beginning the process of rebuilding my credit to help ensure a future that my family deserves. I've been lurking around here for about a week, absorbing as much as I can and am ready to get started! There is so much inspiration to be found here — the future is bright!
Howdy do! Ok I am in AZ too, the SOL for a credit card is considered an "open" agreement and has a 3 yr SOL limit on it. Hope that helps!

Reply:Thanks for the response.. I sent a Limited C&D a long time ago.. but, hmmm don't think I sent one to this particular CA. Actually, CA's 1 and 2 broke so many FDCPA laws it was not funny.. nope, not funny at all.. I sent letters, but to be honest I do not want to go to court.
The OC sent the original application copy with my signature, the customer agreement, and billing statements for the first 3 months of activity on the account which had the account number, my address etc on the statements.
These last 3 collections are hanging on like Pitbulls. Odd thing is when all this happened, I settled with many of them, got several others to reduce the interest rate and have paid all of those off.. I offered settlements to these last 3 at the time, but they would not accept the offers..
So here we are, still playing tug of war.. I am just not sure where to go from here..
Of the other 2, 1 sent a bogus validation, the other has not sent anything, until recently – they started calling again and sent a new letter, and they have a limited C & D from me.
I will send a Limited C & D to the CA, but then what? And what do you think on the SOL?
Thanks again,
guy

Reply:First of all, to get them to stop calling all you have to do is write a limited Cease & Desist letter. Samples of these are all over the place, do a search and take your pick.
Next, what did the "validation" that the OC send consist of? Are you sure it was full validation?