topic Re: Sad Day :( in Mortgage Loans

Sad Day :(

Tischer712 — Fri, 09 Nov 2012 15:43:59 GMT

We were in the process of all of our paperwork for our mortgage, and BAM. Underwriter denied me for the sole fact my reposession is still reporting from over 6 years ago. It is not paid, and it is supposed to drop off in January 2014. I refuse to make payments on it since it is only a year away from dropping off. So we went from being able to look at 132k homes to 70k homes. My fiance is fine but without my income we can't afford more :(. Such a stressful day

Re: Sad Day :(

AJC1987 — Fri, 09 Nov 2012 16:59:05 GMT

Sorry to hear that. Hope everything works out for you.

Re: Sad Day :(

SanFranMatt — Fri, 09 Nov 2012 20:34:11 GMT

How much was the repo for?

Re: Sad Day :(

Tischer712 — Fri, 09 Nov 2012 22:43:56 GMT

3750 i think...Now it is aroun 6k...rough estimates

Re: Sad Day :(

Davidngo — Sat, 10 Nov 2012 00:53:32 GMT

I say just pay it off and get the home of your dreams.

Re: Sad Day :(

courtney091082 — Sat, 10 Nov 2012 01:40:34 GMT

Maybe you could look for another place to loan through? Call around and see if anyone would be willng to work with you?

Re: Sad Day :(

meettheheffs — Sat, 10 Nov 2012 06:38:47 GMT

Completely get it! My lender said my mid score needed to be 620. I hit it on Monday with a 628.. Today when the lender pulled it was lower..

Just look on the brightside and realize everything happens for a reason. Hang in there!

Re: Sad Day :(

beb86 — Sat, 10 Nov 2012 14:56:51 GMT

Refuse to make payments because its only a year away from falling off? Remember this is still your debt and your responsibility I would just pay it off and have them do a rapid rescore

Re: Sad Day :(

jnkp2001 — Sun, 11 Nov 2012 07:21:56 GMT

beb86 wrote:
Refuse to make payments because its only a year away from falling off? Remember this is still your debt and your responsibility I would just pay it off and have them do a rapid rescore

sure, everyone has 6K hanging around....lol:smileylol:

Re: Sad Day :(

Tischer712 — Sun, 11 Nov 2012 22:17:32 GMT

It's not that I refuse to pay the debt. I owe the debt I know that. But when they paid another company to try a collect it and they used tactics like they did. They won't see a penny out of me. On top of that I know as soon as I make a payment all hell will break loose.

Re: Sad Day :(

rckstrscott — Sun, 11 Nov 2012 22:26:54 GMT

Tischer712 wrote:
It's not that I refuse to pay the debt. I owe the debt I know that. But when they paid another company to try a collect it and they used tactics like they did. They won't see a penny out of me. On top of that I know as soon as I make a payment all hell will break loose.

You do know that legally you still have to tell a lender if you owe outstanding debt even if it doesn't show right? If you are comfortable fibbing on your mortgage application, by all means...

I understand the principal, but this is your debt, that you accrued, and assigning blame to another entity just to avoid personal responsibility is iffy at best. If they are partaking in illegal practices you should call them on that, but if they are just doing what collection companies do, then this falls back on you. In addition, it should have be explained to you that outstanding debt like this needs to be paid prior to being approved for a mortgage. So this shouldn't have come to a shock to you.

Blaming the lender, blaming the repo, blaming the collection company gets you no where.

I 100 percent empathize. I had to pay over 20k worth of iffy accounts, a repo, a back tax issue, and an eviction judgement (similary, they hit me for 7k in fees on a 1k judgement) but I weighed getting my dream owe heavier than personal vendettas against a collection company or apartment complex.

If I was in your situation, if the repo is 3750, and its likely out of the SOL and will only report for another year, I would offer them a token sum to settle the debt, because as you have pointed out, in a year no one will no it exists (although they can keep trying to collect this debt forever)

-scott

Re: Sad Day :(

beb86 — Mon, 12 Nov 2012 05:32:54 GMT

rckstrscott wrote:
Tischer712 wrote:
It's not that I refuse to pay the debt. I owe the debt I know that. But when they paid another company to try a collect it and they used tactics like they did. They won't see a penny out of me. On top of that I know as soon as I make a payment all hell will break loose.
You do know that legally you still have to tell a lender if you owe outstanding debt even if it doesn't show right? If you are comfortable fibbing on your mortgage application, by all means...

I understand the principal, but this is your debt, that you accrued, and assigning blame to another entity just to avoid personal responsibility is iffy at best. If they are partaking in illegal practices you should call them on that, but if they are just doing what collection companies do, then this falls back on you. In addition, it should have be explained to you that outstanding debt like this needs to be paid prior to being approved for a mortgage. So this shouldn't have come to a shock to you.

Blaming the lender, blaming the repo, blaming the collection company gets you no where.

I 100 percent empathize. I had to pay over 20k worth of iffy accounts, a repo, a back tax issue, and an eviction judgement (similary, they hit me for 7k in fees on a 1k judgement) but I weighed getting my dream owe heavier than personal vendettas against a collection company or apartment complex.

If I was in your situation, if the repo is 3750, and its likely out of the SOL and will only report for another year, I would offer them a token sum to settle the debt, because as you have pointed out, in a year no one will no it exists (although they can keep trying to collect this debt forever)

-scott

Re: Sad Day :(

chasmith — Mon, 12 Nov 2012 13:38:56 GMT

I agree with Scott that if you are sure it's of SOL you could try to negotiate a small settlement. Try to get a PFD or a non-disclosure around the entire debt (with a non-disclosure they cannot verify when you dispute).

I'm not sure we as borrowers can make a full legal determination about stale debt and reportability on a mortgage application. If the debt is disputed (and a dispute about amount or counterclaims for violations not practical to bring suit for would come in here), and no longer legally enforceable (out of SOL) I'm not sure most borrowers (myself included) would report it on a mortgage application.

Re: Sad Day :(

tooleman694 — Mon, 12 Nov 2012 14:17:55 GMT

I see 2 options here.

First would be find another lender that will ignore it.

Second would be to settle the debt and clear yourself of it.

Re: Sad Day :(

Tischer712 — Mon, 12 Nov 2012 16:32:17 GMT

Thanks guys. I know what you all mean and I do not mean to sound like I am blaming other people for my debt. The only reason I refused to pay was because the normal tactics of a CA. I.E being called immature, irresponsible, and sorry. Just because I offered a 200 a month payment plan, and I couldn't meet there 2k down and 450 a month or so plan. I offered to pay through the OC but they once again referred me to Arrow to make payments, who still won't accept my payment plan. Also, I would not be lying in regards to the debt on the Mortgage application. It still will show I owe the debt. It wasn't the fact I owe it the underwriter was concerned about, it was the fact it still was reporting 120 day lates but closed and another CA was trying to collect it. They wanted me to clear that up. I know now I sound like an irresponsible person. But I am not, I am just being cautious with a debt I cannot afford to pay in full.

Re: Sad Day :(

Sunshine85 — Mon, 12 Nov 2012 19:49:51 GMT

Tischer712 wrote:
Thanks guys. I know what you all mean and I do not mean to sound like I am blaming other people for my debt. The only reason I refused to pay was because the normal tactics of a CA. I.E being called immature, irresponsible, and sorry. Just because I offered a 200 a month payment plan, and I couldn't meet there 2k down and 450 a month or so plan. I offered to pay through the OC but they once again referred me to Arrow to make payments, who still won't accept my payment plan. Also, I would not be lying in regards to the debt on the Mortgage application. It still will show I owe the debt. It wasn't the fact I owe it the underwriter was concerned about, it was the fact it still was reporting 120 day lates but closed and another CA was trying to collect it. They wanted me to clear that up. I know now I sound like an irresponsible person. But I am not, I am just being cautious with a debt I cannot afford to pay in full.

Few things-

Would it be possible to use the money you and your fiance had set aside for closing costs to offer a settlement on this account? I think it's very possible for you to get this settled in full for $2k or less.

You stated the original balance was $3,750. I assume the car was sold at auction after the repo- Do you have any paperwork showing the balance owed after the car was sold, and that the proceeds were applied to the amount you owe?

Even if you don't pay, and the account falls off your reports, that won't stop another scummy CA from buying the debt, re-aging it, and putting it back on your CR. Your best bet would be to settle, get everything in writing (no phone calls to anyone!), and have the CAs agree to remove the tradelines as a condition of settlement.

Good luck, and I hope everything works out for you.