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Established Member
Posts: 24
Registered: ‎11-03-2007
0

I DERAILED MY REFINANCE - HELP!!!

I was set to close on my refinance tomorrow. I began this journey in 2007, when I was a new single mom and a financial wreck. In the past 6 years, I have brought my credit scores from the high 500's to 739-760. I began saving, started contributing to retirement (next year will max out 401k and Roth IRA!) and bought a duplex, which I remodeled and rent out half. I wanted to refinance to a 15 year mortgage from my FHA 203k loan so I could pay it off before I retire. Only baddies was one credit card from 200 that would drop off next year.

Sooooo.... apparently I missed a $99 payment on my HELOC last month (I didn't get a statement and didn't notice), and since that counts as a mortgage, I now have a 30 day late on a mortgage payment, killing the refinance. It was discovered yesterday, and isn't even reporting on the recent credit report the underwriter pulled yet. I have talked with several people at the HELOC bank and even went to the branch where I bank. They won't help, and all I need is a phone call saying paid as agreed - not even any changes to credit report!

For SIX YEARS I haven't missed a single payment on ANYTHING, and I make one mistake, and I am done. The bitch of it is that I was taking just enough cash out to pay off the HELOC!

I am really upset, but mostly I now feel this is just a SCAM. I understand that it was my oversight, but I really don't see how this is some sort of indication that I won't pay my bills. (The account is current and was before all this happened - I paid August on time and still didn't notice, since I pay more than the minimums anyway.) AAAAARRRGGGHHH!!!!!!

Super Contributor
Posts: 8,362
Registered: ‎09-28-2007
0

Re: I DERAILED MY REFINANCE - HELP!!!

If your only late payment in the past 6 years was a 30-day late on this HELOC then you should probably be fine to refinance.  Yes a mortgage late payment in the past 12 months does hurt (your score as well as some underwriters won't be very comfortable with it) but it's certainly possible to still get approved for a cash out refinance.  Your lender actually said that the late payment will cause your loan to be declined?  If so, then I'd check around with some other lenders as not all lenders have that guideline.

Valued Contributor
Posts: 1,837
Registered: ‎03-23-2012
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Re: I DERAILED MY REFINANCE - HELP!!!

Is the late showing up on the report now? You say that you close today. Maybe there won't be a new update pulled.

You should ask your LO if they will update the report again.

Good luck!
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Valued Contributor
Posts: 5,381
Registered: ‎04-30-2013
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Re: I DERAILED MY REFINANCE - HELP!!!

hopefully they don't pull your report again now that the underwriters already have it. I think worst case you would just have to write a letter explaining it. You should be fine. 




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Super Contributor
Posts: 8,362
Registered: ‎09-28-2007
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Re: I DERAILED MY REFINANCE - HELP!!!

Any time that a new mortgage payment is due during the mortgage process it needs to be verified that it's been paid/hasn't gone 30 days late... or underwriting needs to factor that into the loan approval.

Regular Contributor
Posts: 138
Registered: ‎06-04-2012
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Re: I DERAILED MY REFINANCE - HELP!!!

OP.....what was the outcome? Did you actually close?
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Homeowner since September 2013!
Established Member
Posts: 24
Registered: ‎11-03-2007
0

Re: I DERAILED MY REFINANCE - HELP!!!

After an extra week, a loan extension and a lot of hard work by my lender, I closed on my refinance! The late payment still hasn't reported. I can't believe I messed up, but at least my house will be paid off in 15 years. THanks everyone.
Frequent Contributor
Posts: 338
Registered: ‎08-06-2013
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Re: I DERAILED MY REFINANCE - HELP!!!


checkach wrote:
After an extra week, a loan extension and a lot of hard work by my lender, I closed on my refinance! The late payment still hasn't reported. I can't believe I messed up, but at least my house will be paid off in 15 years. THanks everyone.

That's Great I'm so happy it all worked out and thanks for updating us all Smiley Happy

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