If you have that much of a history of lates I am positive the 120 day late will be a deal breaker. The only way they can overloo something like that is if there is credible belief that it was an error or unavoidable type situation. With the history of lates you have provided, there is little chance an UW is going to OK a loan right now.
As far as 12 months verse 24 months, here is how it goes... There is no golden ticket. Some people will get approved with a recent late provided they have otherwise clean history and a reasonable explanation. They look at all the lates on your file. They weigh the ones in the last 12 months the most, but they very closely scrutinize any lates in the past 24 months. With a history of late payments, it is quite possible for an underwriter to want to see longer than 12 months clean history to show that whatever problems or habits led to the older lates have been taken care of. 12 months is easy enough to force yourself to be good and stay on track, but most peopl with bad habits will not last much more than a year without them showing up at some point.
