Can we re apply for a loan or are we going to have to wait a few years???

[Anonymous]

My husband and I applied for a home equity loan and got denied for the following reasons... 1)Serious delinquency and derogatory public record or collection filed. 2) Length of time since derogatory public record or collection is too short. 3) Time since delinquency is too recent or unknown.  We pulled our credit reports and there was a couple of items on my husbands credit report that were still open from collection so we paid those.  Now do we have to wait until these clear off my husbands credit report before we can re apply?

[AtmyOffice]

Paid collections do not affect your credit score. You would have to get them removed completely to see an increase. The Rebuilding Board is full of ideas and resources to fix that. As of the time since they reported, if they get deleted it won't matter...but if they don't get deleted then you just have to hang tight and let them age.

[Anonymous]

What's  the lower  middle credit score  between you and your  husband? If the score is high enough ,  getting the two CO  changed to paid  on your reports  may just do the job. Getting them deleted altogether is better ,but may not be a deal breaker on the next go around.

[ShanetheMortgageMan]

What you received is a generic denial letter, so you should call your loan officer and ask specifically what disqualifed you for the loan.  It may have been when the collections happened, and not if they were owing or not.  It may have been one of those collections was from a company they own, and that disqualifies you from this lender forever.  You see it's tough to tell by just going off of that letter.  Call the loan officer, ask them to explain why you didn't qualify and what you need to do in order to qualify.  It'll be a much better approach.

[Anonymous]

I called and talked to our loan officer and he said paying off my husbands open collection accounts was what we needed to do and he also said his credit score needs to be at 680.  We pulled our credit reports on 2/11/11 and my equifax score was at 718 and my husbands was 630.  On the letter from the bank it said they used Equifax Mortgage Solutions and our scores on there show mine as 685 and my husbands at 642 and they show that dated 2/10/11.  Why is there a difference in score? 

[ShanetheMortgageMan]

If the score you checked was from myFICO.com then they should have very likely been the same, unless reported balances/payments changed overnight.  So if that wasn't it then I'm not sure.  Home equity loans have tougher qualification requirements, so it's not surprising they are looking for a 680 score and collections to be paid.