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Help, I'm scared of losing my mortgage

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Anonymous
Not applicable

Help, I'm scared of losing my mortgage

I certainly hope someone can help me. I am emotionally drained and scared. I am a single mom and worked very hard on rebuilding my credit. I was pre-approved in early Feb with my mid-score right at 640 on the nose. Found the house of my dreams, made the offer, ordered home inspection, rented a dumpster to clean out my rental home, and was telling the world how happy I was! After a few weeks, I started to wonder about closing, so I contacted my mortgage lender who assured me all was fine, we were just waiting on UW. I called my realtor, we set up a closing date and final walk through. I was so excited, thinking I would finally get to move this weekend. Not 45 minutes after I spoke with my realtor, the mortgage lender called and said UW found a student loan in dispute, he immediately sent me paperwork to send to all credit agencies to have them removed. He also explained that it might lower my score because of a false fico score. I am now getting fico alerts and watching my scores drop 25 points as they are updated!!! I didn't have any points to lose! Lender said he will send it to a rapid rescore specialist but I doubt they will be able to gain that many points! Anyone had this happen and get it resolved? I'm so afraid and this has been the longest last week of my life!
Message 1 of 35
34 REPLIES 34
ezdriver
Senior Contributor

Re: Help, I'm scared of losing my mortgage

I feel very bad for you. Was that student loan dispute not on your credit report? 

 

Anyway,  removing disputes often result in lowered scores. That said, there are lenders that will approve FHA loans with scores lower than 620. Hope this works out for you. 

Message 2 of 35
Anonymous
Not applicable

Re: Help, I'm scared of losing my mortgage

The problem is that I am doing a KHC (Kentucky housing Corporation) loan with down payment assistance. I have to meet their guidelines and also FHA . Can't have the word dispute on there anywhere. The word dispute is certainly coming off and everything else is coming off as well like my scores! My score has to be at 640. My lender said the dispute was not showing on there during the original pull, underwriting repulled and found it. I have no idea why it decided to show up 3 months later. My lender is going to try to get it rescored. This has been the longest week of my life. I was supposed to be moving this weekend, and closing today. The only reason I disputed the student loan back in December was because I am in good standing with them and have been for a while, on a credit monitoring site I disputed it online, and with one click of a button, it has caused me so much trouble that I may lose the house.
Message 3 of 35
cem13
Established Contributor

Re: Help, I'm scared of losing my mortgage


@Anonymous wrote:
The only reason I disputed the student loan back in December was because I am in good standing with them and have been for a while, on a credit monitoring site I disputed it online, and with one click of a button, it has caused me so much trouble that I may lose the house.

I am sorry that you are going through hell.  Like mentioned before, disputes are noted on your CR and then that T/L is not used in scoring until it gets resolved either way. Once the dispute is removed (without imporvement) the scores drop to where they would have been normally.  So your scores did not drop, you artificially raised them with the dispute.

 

My issue is that the U/W did not see the dispute before.  I would bet anything that the first pull showed the dispute and the U/W missed or over looked it.  They are human too.  I am not sure there is anything that can be done for you.   Maybe you can take away something positive from all of this.  You should understand everything you can about CRAs and the scoring.  Next time you will not get tripped up.

 

Good luck and God Bless.  Keep us up to date on your progress.

FICO 08 JUL23: TU 850; EQ 846; EX 843. Clean since BK7 D/C 6/2011.
Message 4 of 35
Anonymous
Not applicable

Re: Help, I'm scared of losing my mortgage

Thank you, and I will keep this updated so that it may be beneficial to someone else in the future. The good thing is that so far my score dropped 25 points not 75 or anything too dramatic. My only hope is that the rescore specialist may be able to find something worth rescoring that can give me the points I need. I am doing everything they told me to do, I am keeping my credit card at a 4% utilization, lower than what they told me, I am paying my bills on time if not before the due date every single month. Lesson definitely learned that I did not know about. I had the same question why the lender did not let me know this sooner? Had I known sooner, I could've had more time to boost my score up. They used an automated underwriter. My other question is that since I filed the dispute back in December I don't know why it was just showing up. Disputes are supposed to be resolved within 30 days, and to me that almost seems like an error on my credit report. If it was filed in December, it should've either been resolved and taken off of my credit report, or dispute status should not have been showing in March. But I am not the expert here. All I know is I'm disappointed. I tried so hard...if you only knew...
Message 5 of 35
Lemmus
Established Contributor

Re: Help, I'm scared of losing my mortgage

...patience! ...all may not be lost as yet ...under KHC and FHA guidelines, a manual underwriter has the ability to approve you using the totality of your file despite the score not quite being there ...doesn't mean they will, but until they definitely say no, its more than a possibility ...hth


Helpful Links: Do I Qualify? | Mortgage Calculator | USDA Mortgages | Opt Out | FICO Versions
Last HP: 11/04/15 | myFico 3B Jun 10 '15:FICO8 EQ - 752 | TU - 763 | EX - 750
Message 6 of 35
apeydee416
Contributor

Re: Help, I'm scared of losing my mortgage

Question, why was the student loan disputed and did it resolve in your favor?

Message 7 of 35
Anonymous
Not applicable

Re: Help, I'm scared of losing my mortgage

The reason I disputed the student loan, is because I have been in good standing with them for quite some time. I read about Lexington Law getting them removed if you were in current good standing with them, and read several other forums about how people have had them removed. But it takes a lot of time to get them removed and you have to stay on them. Back when I was working on repairing my credit in order to purchase a home I didn't know any better. The fact that the dispute did not get removed, I thought that my request was denied. I have definitely learned the hard way. It did not work in my favor, it is still on there. I was notified last Thursday, March 26 that underwriting found the dispute. Today is April 2, I should know something soon, Lender told me that it is a 5-7 day turnaround time for them to get the dispute wording off and for it to be reassigned to a rescore specialist. So far, I think 2 of the 3 have already come off because of my alerts that I got on here. Lesson learned the hard way! I'm also not sure my lender uses a live person underwriter, I think they use the automated one.
Message 8 of 35
Lemmus
Established Contributor

Re: Help, I'm scared of losing my mortgage

...afaik all mortgage lenders use a living breathing human underwriter on every loan they approve ...the automated processes are a preliminary review to determine basic internal and govt loan eligibility ...it only determines what the underwriter is required to do in addition to the basics  


Helpful Links: Do I Qualify? | Mortgage Calculator | USDA Mortgages | Opt Out | FICO Versions
Last HP: 11/04/15 | myFico 3B Jun 10 '15:FICO8 EQ - 752 | TU - 763 | EX - 750
Message 9 of 35
Anonymous
Not applicable

Re: Help, I'm scared of losing my mortgage

Thank you! This is certainly a stressful period, but also a learning experience! I have not thrown in the towel yet, but this is wearing on my nerves! Fingers crossed and I will keep everyone informed in case this happens to someone else and a dispute shows up in underwriting right before closing!
Message 10 of 35
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