Chance of default removal?

reacher89

In late 2018 I was in a very bad car accident which left me in the hospital for over 3 months (11 surgeries in total), being self employed this completely destroyed my income and upon leaving the hospital it was a further 7 months before I was able to get back to work. As a result I defaulted on 2 credit cards that I had at the time.

i am now finally in a position where I’m getting back on my feet and want to clear these up, at present they have both been passed onto debt collection agencies. If I offer to pay these debts in full and explain the exceptional circumstances what is the chance I can have the defaults removed from my file? 

sourcrates

Payment of a debt does not ever remove the default.
You could cite exceptional circumstances, due to your accident, and send a written complaint to the original creditor, ask them to remove the default as a gesture of goodwill, but it’s entirely at their discretion.
The situation is made more complicated if the debt has been sold on, as they have no real incentive to do so.
Only the company that defaulted you can remove it, the collection agencies are nothing to do with that, so won’t be interested in your dispute.

Willing2Learn

The chances are low for your creditors to agree to amend any factually correct data, recorded on your three credit files.

I would definitely make the request though.  Probably best to do it in writing.  Explain about your brush with death.

You never know.  Maybe you will get a result.  And besides, if you don't ask, you don't get. 

Malkytheheed

i'm sorry to hear about your accident.

No chance removing the defaults as they are accurate. 

Being self employed you should have had at least 6 months savings built up for times just like these. And some form of insurance in place to cover sickness or accident to yourself.  The defaults show that you were living month to month self employed  with no insurance in place. Sorry but it is only fair that lenders see that level of risk you carry. 

Time is a healer and the defaults will disappear after 6 years. 

reacher89

If I pay off these debts and put a note of correction on my credit file explaining my accident, what is the chance I’ll be able to get a decent mortgage in say 2yrs (would be 3-4yrs after default)? 

I have no other marks on my credit file and my credit report shows that I was keeping these credit cards in good standing for the last 6 yrs before my accident. There is a very clear record of me paying these credit cards and then a sudden point where I stopped making payments on both. Would a decent mortgage broker be able to explain that this was a freak accident and help me still get a decent mortgage? 

[Deleted User]

Don't put a notice of correction on.  It's a fast track to getting declined for the simplest of products.

A good broker will match you up with a lender who is happy with your risk profile.

Willing2Learn

Putting a Notice of Correction on your three credit files can have the opposite effect and just make things look worse.

I think a more prudent option, is to find yourself a good and experienced mortgage broker who specialises in adverse credit file data.  You won't have any problems.  People can get mortgages with a default, no problem.  Just get yourself a broker. 

reacher89

Thanks @Deleted_Usergiven the circumstances around my default, what are the chances that I will get a decent mortgage? This accident has already nearly ruined my life once already, I can’t bare the idea that it is going to hang over my head for another 4 yrs until the debts clear off of my report. 

DCFC79

No one here can have no idea of your chances, as suggested do it in writing and ask it to be removed.

As for a decent mortgage well again it's not really something we can give an answer to, as suggested you need to speak to a broker.

Fighter1986

If the defaults are satisfied and you don't have debts elsewhere, you will have a wide range of mortgages still available to you once the defaults are three years old (that's three years from the default date, not three years from the date they were settled).

A good all of market broker like London and Country will help find a suitable lender when the time comes.