Deal In Progress
I have a deal where I am in the process of selling my finished rehab for asking price of $86,000. Prospective buyer has credit rating of 510 and lender is telling him that he has to have score of 580 or an amount of $5,000 or less in collections on his credit report. If i were to pay his collections (which total $6,000) could I then move the asking price to $96,000 which would give me my money back plus pay for his closing costs? Appraisal will easily come back at $96,000. Any help would be appreciated. If his collections are paid right away by me could we do another rapid credit score and would this make any difference? He has open civil judgement and credit card and utility bill that total the $5,000.
This guy works for me, for one, but I also got a promissory note that my attorney had him sign. My only doubt is that his score would go up right away if those 3 collections would be paid or would it take 9-12 months for the score to update.
Updates to his FICO would depend largely on the amount of time his debtors take to update his records. He can the debtors to send correspondence directly to the reporting agencies requesting that the record be updated, or he can request it himself online. Regardless, the process is not instantaneous. Best bet may be to provide documentation to the lender to show that the bills have been paid. Just some thoughts...Tom