topic Re: Will they report? in Rebuilding Your Credit

Will they report?

SarahElisabeth — Fri, 02 Nov 2012 21:14:54 GMT

Hello, I'm new to the forums and have a question. My husband and I are in the process of applying for an FHA home loan. He has had credit issues in the past, but has been working hard at rebuilding his credit over the past year. He had a 30 day late payment on his auto loan in August of this year (he thought he paid it but hadn't), but his credit was pulled today and it's not been reported. How likely is it that they would report the late payment now? Crossing my fingers.... I'm really afraid that if they do report it, his credit will drop too much and we wouldn't be able to get the loan at all. His middle score is 671.

Re: Will they report?

rckstrscott — Fri, 02 Nov 2012 21:19:34 GMT

SarahElisabeth wrote:
Hello, I'm new to the forums and have a question. My husband and I are in the process of applying for an FHA home loan. He has had credit issues in the past, but has been working hard at rebuilding his credit over the past year. He had a 30 day late payment on his auto loan in August of this year (he thought he paid it but hadn't), but his credit was pulled today and it's not been reported. How likely is it that they would report the late payment now? Crossing my fingers.... I'm really afraid that if they do report it, his credit will drop too much and we wouldn't be able to get the loan at all. His middle score is 671.

Ugh.. tough to say.. when was the last report? Does it show Octobters payment yet? Sometimes lates will show a month after the fact..

How late was he on the payment? 31 days? 40 days? 54 days? When did he finaly become current

-scott

Re: Will they report?

SarahElisabeth — Fri, 02 Nov 2012 21:32:31 GMT

Hmmm, I'm not sure when they last reported. I need to ask our loan officer. He was 35 days late and has been current ever since. Do the banks usually report every month? When the credit was pulled initially on 9/24/12, they had reported in 8/12.... but the loan wouldn't have been late at that point.

Re: Will they report?

Shogun — Fri, 02 Nov 2012 21:33:38 GMT

You will just have to watch the report and see if it posts. If it does, see if you can GW them.

Re: Will they report?

SarahElisabeth — Fri, 02 Nov 2012 21:33:40 GMT

Do they report on the same day each month? Or could it differ?

Re: Will they report?

rckstrscott — Fri, 02 Nov 2012 21:34:36 GMT

Should be the same time every month..

When did the LO last pull your credit?

-scott

Re: Will they report?

Shogun — Fri, 02 Nov 2012 21:35:13 GMT

They most often report around the same time, give or take a day.

Re: Will they report?

SarahElisabeth — Fri, 02 Nov 2012 21:35:47 GMT

What I'm most afraid of is that we will get the mortgage committment with the current credit, and then if they re-pull the credit at the very end we would lose our real estate deposit (3.5% of purchase price and most of our savings)

Re: Will they report?

SarahElisabeth — Fri, 02 Nov 2012 21:36:47 GMT

They pulled the credit today just for that trade line

Re: Will they report?

rckstrscott — Fri, 02 Nov 2012 21:37:59 GMT

SarahElisabeth wrote:
What I'm most afraid of is that we will get the mortgage committment with the current credit, and then if they re-pull the credit at the very end we would lose our real estate deposit (3.5% of purchase price and most of our savings)

If your deal falls apart at the table due to a new credit thing, you won't lose your downpayment/earnest money.

You only lose that if you back out of the deal.

-scott

Re: Will they report?

rckstrscott — Fri, 02 Nov 2012 21:38:39 GMT

And in this market, they will repull at the end, you can bank on that.

When is your closing date?

-scott

Re: Will they report?

SarahElisabeth — Fri, 02 Nov 2012 21:40:18 GMT

Wow, thank you for that information! I will seriously sleep better :smileyhappy:

Re: Will they report?

SarahElisabeth — Fri, 02 Nov 2012 21:42:19 GMT

Not until the end of February... the house has a tenant that needs to leave before we close, and she has a lease.

Re: Will they report?

rckstrscott — Fri, 02 Nov 2012 21:44:29 GMT

SarahElisabeth wrote:
Not until the end of February... the house has a tenant that needs to leave before we close, and she has a lease.

Then you have plenty of time to get this handled, even if it reports.. :)

I wouldn't worry too much at this point, it will either report or not. And there isn't anything you can proactively do to make sure it doesn't report. You will just have to handle it if it does.

But you won't lose your earnest money, and worst case scenerio is you are back on track for FHA in August of next year... but I don't think it will come down to that.. don't worry about it until it reports, if it reports at all :)

-scott

Re: Will they report?

SarahElisabeth — Fri, 02 Nov 2012 21:45:43 GMT

Is there any point that I can be reasonably sure that they won't report the late, if they have been reporting each month and it hasn't come up?

Re: Will they report?

SarahElisabeth — Fri, 02 Nov 2012 21:49:03 GMT

Thank you! I'm such a worrier!

Re: Will they report?

SarahElisabeth — Fri, 02 Nov 2012 22:10:36 GMT

Hmm...from what I'm reading, if you get denied for the loan after the mortgage contingency deadline, you lose your deposit, even if you previously had a mortgage commitment. Is this not true?

Re: Will they report?

rckstrscott — Sat, 03 Nov 2012 18:49:16 GMT

I just went through the process in may. if you don't back out of the deal, you don't lose your earnest money.

SarahElisabeth wrote:
Hmm...from what I'm reading, if you get denied for the loan after the mortgage contingency deadline, you lose your deposit, even if you previously had a mortgage commitment. Is this not true?

Re: Will they report?

Rlandon87 — Sun, 04 Nov 2012 06:10:45 GMT

Are you subscribed to credit karma? Or any other credit monitoring website?

CK is free and you can update it everyday to watch and see if the late gets posted. If it does get to work on GW the lender and explain your situation.

It's truly impossible to say if/when it will be reported. I can say it is unlikely they would not report at all for the month. They WILL report - you just have to hope that based on your apparent good payment history, system update timing, and procedures for the lender that they will over look the late and report as paid as agrees- which is a possibility, it has happened for me that a 41 day late wasn't reported when I called and asked for a supervisor. I made the late payment and current In one lump sum and explained that I was having debit card issues with the cars used to make payments normally on the account. The supervisor said she knows things happen and because of my 18 month good payment history with no late she didn't feel as I was being negligent so she waved the late as a "system update error" and showed it paid on time as agrees

Anyways sorry for long post. Good luck with whatever happens.

Re: Will they report?

SarahElisabeth — Sun, 04 Nov 2012 19:56:04 GMT

Well crap. Just signed up on credit karma and it does show the late payment... Why wouldn't it show up when my lender pulled it? What can I do now? Send a goodwill letter to the bank? It's a local credit union, how successful is that usually? Also, are the scores on credit karma reasonably accurate?