We've found a house (yeah) and just offered a bid on it. We'll find out today if the bid was rejected or accepted. Now here's the latest drama.....during the prequalification, the mortgage company pulled our credit reports & said everything looked good. During that time I had 2 collection disputes going with equifax which of course were verified. So my questions are: 1) Did they see those accounts when they pulled the report during the prequal? 2) If they didn't, then they will see them for the approval & what do I do? I have proof that I've disputed these 2 items, tried to have them validate but being ignored. I even have old reports as proof that they keep changing the date of last activity. I also have proof that Transunion & Experian deleted these accounts with no problem....do you think this will help at all? Or are they going to demand that the collections are paid in full before closing. The amounts in collection are $1300 & $583. The $583 is ours but should have come off the reports in 2001 if they didn't change the date of last activity when sold to the collection agency. The $1300 is not ours...belongs to Montgomery Wards.
This is happening to me right now. We had an item in dspt, it was a collection for 950.00, that I am trying to get validation on, it came back as verified. We went thru the pre-apprvl for the mortgage, I explained the situation to our mortgage broker, he explained that we were pre-approved even with that collection on there, but if worse comes to worse in the end, we may have to pay it at closing. Its a 5-6 yr old telephone bill debt from when my husband was in the Marines, and he didnt pay it. I dont want to pay it, its only on his Trans Union report, its so old, they wont provide detailed info, the guy at the collection agency says its not worth the time and money because of the age, so they wont do anything, or provide me anything. I really dont know what to do about it at this point. As far as the mortgage is concerned, they told me that it wont stop us from getting a favorable loan, we've already started getting a house built, he says it hasnt been a problem so far, so everything should still go smoothly, we'll see. Jamee
Steff - I have a collection from 3/99 that was paid (Hopefully it'll fall off soon as they didn't respond to validation letter). Mortgagers don't care as much if the item is paid (They do care, however, if it's unpaid). You will need to write a letter explaining why it went into collection (Young and stupid, didn't know any better, etc.) I'm using FHA and they wanted scores in the 600's and 2 years of no derogs, as well as any items such as collections paid. And yes - they will see it on the pre-qualification, at least mine did. Good luck with the loan process, If you're using FHA, just wait until the inspection; and I thought my wife was a pain about what condition a house should be in... GT
My FHA closing is scheduled for 3/11. Century 21 Mortgage requires one year of good history, and I was told that people have been approved with scores in the 550s. I didn't have any collections or chargeoffs, so I can't comment on that. They do require alot of paperwork and verification. I have a 7.00% interest rate with 0.75% origination points locked in. They also accept the Nehemiah program for 0 down purchases. I have no complaints yet...
