Co-Workers File...Mtg Guru's chime in...

[fishbjc]

co-worker went through horrible times last year, with 5 late (30) mtg payments, 1 late auto and 3 cc's.  She has been on time with everything for 12 months.  Secure job, with 50% downpayment, scores in the mid 650's.  Is she now eligible since the lates are behind her by one full year?

Medical Bills can KILL you.  At least she's still alive!

[Lel]

Well, she's "eligible" in the sense that there's nothing that would prevent her from applying for a loan.  The multiple lates, including several on her mortgage, are going to be hard for the underwriter to look past.  However, the 50% down payment would probably settle a lot of concerns.  But it's definitely not a slam dunk.

Has she been consistently working at her same job with a stable earnings history for the last ocuple years?

[ShanetheMortgageMan]

What happened with the mortgage (is it paid off/home was sold)?  If it was, has the rental history been all on time since, and how would the rent amount compare with the new mortgage payment amount?

[fishbjc]

Shane, her family home has just been listed for sale.  She plans on taking $100,000 out of the proceeds to purchase a foreclosure.  After she waits the year out, she would like to sell the foreclosure and purchase something else.  She will also be debt free, including the medical bills. 

She has no-collections.  She just cannot meet the current mortgage payment, also her husband had a 25% income reduction.  Sometimes bad things happen to good people, she's just fortunate that she can pay cash for something else. 

Her old mortgage payment was $2000.  New payment should be approximately $700.  She called a broker & he gave her an estimate of approximately $1400, which she can afford, just $700 would make it so much simpler. 

Thanks for chiming in.