MovingForward_2012 wrote:
It is your recent late payments that are hurting your score very badly. Most lenders require absolutely no late payments 12 months before applying. If you don't have a borderline credit score, they may let a 30 day late slide but not a 60 or 90 day late. I haven't had any late payments since 2005. You really got to work on paying on time every single month to establish a long record of good payment history to show lenders you are staying within your means. This will improve your score over time. Even though your 90 day late just turned a year old, lenders are going to want an explanation for why you were unable to meet your obligations for 3 months.
The lenders that approve a 620 make you jump through a lot more hoops. And on June 1st when the new FHA rules go into effect, lenders will have to do manual underwriting for scores less than 620 and the lender will have to justify why you are good candidate for a mortgage. These new rules will probably reduce or eliminate the lenders that will approve someone with a 580 mid fico score.
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MovingForward2012, I highly value your opinions. Have been reading a lot of your responses and yours are always the most honest and correct! I was wanting to go ahead and get approved before June because of the fact that more strict laws will pretty much make it a 680 to qualify because of the manual underwritting reviews.
My best best would be to wait until my most recent 90 day late for a $47 monthly payment get older! Worse thing I have ever done. I let myself get confident that it was no biggy to be late if I brougfht the account current with one large payment. I have no idea what I was thinking and since we are joint on the account, it affected both us
Equifax is also reporting two 120 day lates on the 2007 foreclosure. Funny thing is that the 120 day lates are reporting after the foreclosure and to be exact they are showing 120 day late in July 2012 and September 2012 (the two disputes I submitted because reporting was incorrect). I have no idea how to fix this now.
If I had only found this forum three years ago I would be golden ;-)
My foreclosure happened in 2007 as well. Thank you for the lovely compliments! :-)
From what I have read is that manual underwriting will only be required for 620 or below, not 680. And I am sure it won't be implemented instantaneously on June 1st. Lenders will slowly adapt to the new rules over time. So there is still time after June 1st if you need it. But after June 1st, if you put less than 10% down, PMI will be required for the life of the loan.
The lates due to the foreclosure should not cause any issues due to how old they are. Lenders just want to make sure the date you app is 3 years after the foreclosure sale date .
From what I have read is that manual underwriting will only be required for 620 or below, not 680. And I am sure it won't be implemented instantaneously on June 1st. Lenders will slowly adapt to the new rules over time. So there is still time after June 1st if you need it. But after June 1st, if you put less than 10% down, PMI will be required for the life of the loan.
The lates due to the foreclosure should not cause any issues due to how old they are. Lenders just want to make sure the date you app is 3 years after the foreclosure sale date .
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