Automated Approval - Denied; Sent to Manual Underwriting

[Anonymous]

Just saw your newer post listing the negs.

The payting of loans to a certain percentage has no affect on your credit at all.  Paying them off can often lower your score as you loose the good active tradeline and mix of accounts.  It is paying credit cards down to a certain percentage of their limit that gives you a big FICO boost.

The issue here is going to be a foreclosure 3 years ago and lates since then.  That is a hurdel for a manual underwriter.  They want to see very clean credit post BK or post foreclosure.  If it was 1 late with a good explanation they can probably overlook it.  If it was multiple or any type of pattern the chances drop alot that an UW can overlook it until you get closer to the 2 year mark or so.  They need 12 months clean credit, but with BK or foreclosure, they really look closely at all credit activity since the NK or foreclosure and especially in the last 24 months. 

[Anonymous]

sorry to butt in on this post...Mickie...what do you will think they will say about my situation in underwriting. no lates in 6 yrs, i have one installment loan that ive refinanced a few times. never been late on it or anything. I owe 1800., the old capital one acct slated to fall off according to LO in August(1,800)? I just worry because I have no credit cards ...or i guess good credit. been at job for 11 years, and have a credit history of 10( im 30). this post just made me think...LO says no issue, but sounds like they have different rules than UWs.

[Anonymous]

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@Anonymous wrote:

Just saw your newer post listing the negs.

The payting of loans to a certain percentage has no affect on your credit at all.  Paying them off can often lower your score as you loose the good active tradeline and mix of accounts.  It is paying credit cards down to a certain percentage of their limit that gives you a big FICO boost.

The issue here is going to be a foreclosure 3 years ago and lates since then.  That is a hurdel for a manual underwriter.  They want to see very clean credit post BK or post foreclosure.  If it was 1 late with a good explanation they can probably overlook it.  If it was multiple or any type of pattern the chances drop alot that an UW can overlook it until you get closer to the 2 year mark or so.  They need 12 months clean credit, but with BK or foreclosure, they really look closely at all credit activity since the NK or foreclosure and especially in the last 24 months. 

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Mikie08,

I know that you give very good advice, but i'm hoping you're wrong on this one and i have God's favor.

[jmack711]

I'm going thru the same process now. I too believe what GOD has for me it is for ME!!! My lo has been asking for more documents as well such as updated bank statements and check stubs and what not. At first I was a little irritated and frustrated but we have to understand that things have changed considerably due to the housing market and bank situations. So just continue to trust and pray that all will work out for your good thru GOD'S grace!!! Good Luck!!

[Anonymous]

Thank you...and Blessings to You and Your Endeavor.....Sending Good / Godly Vibes Your Way.

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@jmack711 wrote:

I'm going thru the same process now. I too believe what GOD has for me it is for ME!!! My lo has been asking for more documents as well such as updated bank statements and check stubs and what not. At first I was a little irritated and frustrated but we have to understand that things have changed considerably due to the housing market and bank situations. So just continue to trust and pray that all will work out for your good thru GOD'S grace!!! Good Luck!!

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[Anonymous]

Ok, how ugly is this mess.

I called the builder today because I purchased a chandelier from an estate sale...you know just to see how good it would look in the new house.  The builder asked if I had gotten a call from another lender.  Ahhhhhh Noooooo! Well she continued to tell me that she had to pick up my file from BofA because they could not do the loan.  I asked why, she said she did not know.  She said the LO didn't even have the courtesy to stick around to speak with her when she went in to pick it up.  He didn't call to tell her "Houston, We Have a Problem" NOTHING.  He didn't tell her what the issue was, but that 3 of her buyers were denied. When she called him to let him know that she was on her way to pick up the file, he said he had to run and will let someone know she was stopping by.  Well, no one knew what she was talking about when she asked about my file.  She just so happened to look on the counter and low and behold there was my file; was just sitting there for anyone to pick up.

It would have been 4 weeks today of being in underwriting and the builder called the LO asking what the hold up was, the LO never called her nor did he call me to apprise of the status.  I actually spoke with him last Tues. and he told me things were going well, still in UW.  All the while, when he would ask for additional information, he would make comments of me being a stellar client - proficient, a great writer of explanations and organized.  But I knew things were strange because the UW never contacted my HR department to verify employment.

I just hate that they wasted 4 weeks of my life.   The stress of waiting was horrible, now i feel deflated thinking i have to start this whole process again with the new lender.  I never got a letter saying "HELL NO"....I SUPPOSE IT'S IN THE MAIL.....

Keeping hope alive....hopefully the new lender is the charm.  The good thing about this is a collection has fallen off since the 1st LO ran my credit.  It was due to fall off in Oct. I believe.

[Anonymous]

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@Anonymous wrote:

Ok, how ugly is this mess.

I called the builder today because I purchased a chandelier from an estate sale...you know just to see how good it would look in the new house.  The builder asked if I had gotten a call from another lender.  Ahhhhhh Noooooo! Well she continued to tell me that she had to pick up my file from BofA because they could not do the loan.  I asked why, she said she did not know.  She said the LO didn't even have the courtesy to stick around to speak with her when she went in to pick it up.  He didn't call to tell her "Houston, We Have a Problem" NOTHING.  He didn't tell her what the issue was, but that 3 of her buyers were denied. When she called him to let him know that she was on her way to pick up the file, he said he had to run and will let someone know she was stopping by.  Well, no one knew what she was talking about when she asked about my file.  She just so happened to look on the counter and low and behold there was my file; was just sitting there for anyone to pick up.

It would have been 4 weeks today of being in underwriting and the builder called the LO asking what the hold up was, the LO never called her nor did he call me to apprise of the status.  I actually spoke with him last Tues. and he told me things were going well, still in UW.  All the while, when he would ask for additional information, he would make comments of me being a stellar client - proficient, a great writer of explanations and organized.  But I knew things were strange because the UW never contacted my HR department to verify employment.

I just hate that they wasted 4 weeks of my life.   The stress of waiting was horrible, now i feel deflated thinking i have to start this whole process again with the new lender.  I never got a letter saying "HELL NO"....I SUPPOSE IT'S IN THE MAIL.....

Keeping hope alive....hopefully the new lender is the charm.  The good thing about this is a collection has fallen off since the 1st LO ran my credit.  It was due to fall off in Oct. I believe.

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any advice????

[Anonymous]

I don't have any advice. I hope it all works out.

I personally believe the process should be done differently. I just feel like the loan process wastes so much time. At any rate good  luck. I hope it all works out

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Ok, how ugly is this mess.

I called the builder today because I purchased a chandelier from an estate sale...you know just to see how good it would look in the new house.  The builder asked if I had gotten a call from another lender.  Ahhhhhh Noooooo! Well she continued to tell me that she had to pick up my file from BofA because they could not do the loan.  I asked why, she said she did not know.  She said the LO didn't even have the courtesy to stick around to speak with her when she went in to pick it up.  He didn't call to tell her "Houston, We Have a Problem" NOTHING.  He didn't tell her what the issue was, but that 3 of her buyers were denied. When she called him to let him know that she was on her way to pick up the file, he said he had to run and will let someone know she was stopping by.  Well, no one knew what she was talking about when she asked about my file.  She just so happened to look on the counter and low and behold there was my file; was just sitting there for anyone to pick up.

It would have been 4 weeks today of being in underwriting and the builder called the LO asking what the hold up was, the LO never called her nor did he call me to apprise of the status.  I actually spoke with him last Tues. and he told me things were going well, still in UW.  All the while, when he would ask for additional information, he would make comments of me being a stellar client - proficient, a great writer of explanations and organized.  But I knew things were strange because the UW never contacted my HR department to verify employment.

I just hate that they wasted 4 weeks of my life.   The stress of waiting was horrible, now i feel deflated thinking i have to start this whole process again with the new lender.  I never got a letter saying "HELL NO"....I SUPPOSE IT'S IN THE MAIL.....

Keeping hope alive....hopefully the new lender is the charm.  The good thing about this is a collection has fallen off since the 1st LO ran my credit.  It was due to fall off in Oct. I believe.

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Ok I spoke to the BofA LO today, he said that he hadn't called me because he thought the builder would give me a call.  The reason for the denial is the late after foreclosure, granted they knew that information when they first took a look at my file over 4 months ago. 

When I first contacted BofA in January, I have to admit my credit wasn't the greatest.  My mid score was below the 620 w/ 8 collections.  He instructed me to pay off my car $3,000; a CD loan $500; all other loans below 50% balance ($1,800 total); paid off 2 collections ($1,000). Hell I was on such a roll, I had 7 of the 8 collections deleted with the help of you guys.  All of this was done in a matter of 2 and a half months.  However, they knew about the late before all the explanations, all the payments.  And this was the reason for the demise. 

I agree, they need to fix this process

[Anonymous]

I so feel your pain!  We applied with BofA in February.  Prequalified.  Our LO was great -- quick to return our calls and emails, walked us through all the needed documents, patient with explaining things to us.  Soon after receiveing our Welcome Package with the application and all of the documents she told us her job was complete as our application was moving to the next step and our file was being passed on to the loan processor who we would be getting a call from.  Waited 2 weeks, no call.  Checked our loan status page on the BofA site daily for information.  Emailed the listed loan specialist a list of questions regarding items noted on our "To-Do" list.  No reply.  Emailed the original loan officer to see what was going on and received a prompt response from her with the phone number and email of another LO (she said she had moved to another position), and an apology for the poor customer service.  He finally answered our email and most of our questions about the "To-Do" list. In the meantime the appraisal was done, and we heard nothing for another 2 weeks.  The loan specialist finally answered our call and told us that the appraisal was being reviewed by the uw.  She also said that they were swamped with closings for April and we wouldn't know anything until May since our closing isn't scheduled until May 24th.  That was over a week ago, so today we phoned her again and she gave us a list of things we needed to provide:  Proof that child support obligation has been met and completed, 12 months of documented mortgage payments, bank statement for March, pest inspection.  She also said we needed to provide documentation regarding the terms for withdrawal for DH's 401K to show we would be able to withdraw the funds for closing costs.  I told her he doesn't have a 401K, but does have Deferred Compsensation and we could only withdraw for certain emergencies and were not planning on withdrawing for closing costs (couldn't anyway).  She replied that in that case we would not be able to list it as an asset and would have to show proof of funds for closing since we would not be using the 401K.  I told her that the seller was paying up to $4000 of closing costs which she did not seem to be aware of. Before losing the connection I  asked how the loan was looking -- if there appeared to be any issues that would keep us from being approved, and she said "Oh, the loan is approved, provided you meet the conditions we just went over."  It would have been so nice to have been kept informed of what was going on.  I have been reading this board since we first started this process and I have been so envious of all of those who comment about how easy the process has been for them.  So anyway, I do understand your frustration and I hope you find the answers you seek.  For now, we are keeping our fingers crossed that we will hear the magical "Clear to Close" soon.  This has been the most nail-biting experience ever and one I don't ever plan on going through again....we are finally going home!