defaults mean no mortgage

libsmum

Hi

I have 5 large credit card bills being run by a debt management company after my cocaine abusing ex ran them up & i couldn't pay them.

They said i defaulted on 2 (2006 & 2007) although in all the chaos of that time i don't honestly remember.

I have paid them the agreed amount each month and this is ongoing

i have been refused a mortgage because of these (i was intending to borrow extra & pay them off !)

my actual credit rating is 999 out of 1000 but the defaults override this - so im told

Is there anything I can do besides wait the 6 yrs out ?

thanks for any advice.

(I have asked the dmc and they said no go)

chanz4

if on a dmp your credit rating cant be 999, more like 200. Not really much you can do

MrsTinks

Credit score means nothing... it's an indicator, nothing more. I'm however amazed that your score is what it is given you have defaults. I would expect that until the defaults are settled or 6 years from when they were put on your file you would have difficulty getting a mortgage or at least one with a semi affordable rate.
The creditors ultimately don't care who spent the money unless you can prove it was fraud and you'll need to go the legal route with that.
Obviously there is also the argument that so long as you can't make the full repayments you can't afford a mortgage, never mind that it's against the terms of your DMP to take out more debt whilst you are in the DMP. I know it's a mute point given you were intending to pay the cards with part the money taken out. I'm also not sure how you would have managed to get a mortgage anyway? I don't know of any 100% ones out there (might have missed them!) and you'd still have to pay stamp duty and so on. Unless you have savings to cover all this you'd probably unable to get a mortgage anyway and if you have the savings... pay off the debts...

libsmum

thank you Mrs Tine but I wanted advice about if/how to remove defaults. what i can afford etc wasn't the question

I can't go down the fraud route, my ex has since had 2 strokes (cocaine induced) and can't speak, walk or anything.. it was wrapped up in the divorce and I have to deal with it. Would it do me any good to write to the companies and explain ?

I read about how its not always best to get them removed, would that affect me ? If I made them an offer to settle and they accepted what would happen then with the defaults ?

thanks

MrsTinks

You can't remove the defaults. That's kind of the point. If you pay them then they will be marked as "settled" or "satisfied". You can negotiate with the creditors about partial settlement but only if they agree to mark settled in full - this is what we term as Full & Final settlements - they relinquish their rights to pursue you for the remainder of the debt and will mark the files as settled in full (even though they were infact not...)

I don't personally care what you can and can't afford - I'm trying to explain why the likelyhood of a mortgage so long as you have unsettled defaults and an active DMP and no savings is probably very low. If you have accepted the debts in the divorce as yours then there is very little you can do unless you want to challenge your settlement? I guess if you were in fear for your life at the time that could be a possibility but you need proper legal advice on that from your solicitor, not a debt help forum.
The defaults will drop off your file 6 years after they were placed - remember however that your creditors could in theory go for a CCJ at any time if you still owe them money and if you have a house they might try to get the debt secured against it or rather any equity in it.

Honestly the best thing I think you can do is settle the debts either in full or F&F settlements before you look at the mortgage. I can't see any likelyhood of getting them removed from what you say... the debt was incurred, you accepted the debt was your responcibility and the original credit agreement was defaulted on. The default would be as far as I can see correctly applied.