Starting Over - After a Divorce

Among other things, a divorce can devastate a person financially. In my occupation, I hear of this all too often. A boatload of credit card debt. A car loan with late payments. Open collections. These are only a few of the credit vexations that may occur when someone has gone through a divorce.

Let's assign these problems to Jane Doe. Now years past; she attempts to recover from her divorce but her credit is ruined. 480 FICO. She wants a house but she has not yet rebuilt her credit. Can we help her? Here's more:

Rent: $800 and paid on-time
Utilities, car insurance: paid on-time
Collections: Less than $5000
Employment/Income: Stable and enough to afford a $1000 mortgage payment.
Assets: $4500 and thank goodness she still has her 401k with $10,000

Can we help her?

She's afraid to call because of her score, her collections. But she shouldn't be. Excellent rent history and her alternative credit will bode well for her. She has also saved up for a home and can prove > 3 months of reserves. She can explain and document her past credit challenges (previously she had good credit, her dates of late payments coincide with her divorce.

Is it possible for her to get a loan?

She won't know until she calls. Never be afraid to call. You never know.