LOX HELP ... PLZ

[shawneet]

Hi everyone ... I'm really needing some good advice here (as there always is) so hopefully you guys will chime in and help me out.  Okay, so here goes:  We are in the process of having a home built.  Today I get an email from the loan processor asking for a few items from us so that she can send us on thru to the next level of underwriting.  Okay, well one of the items that she is requesting is a LOX from us explainig the circumstances for us making our mortgage payment late 3 x last year.  Well, we didn't make the payment late 3x.  We were late with one payment and so the mortgage company posted that payment late and then we seemed to have a rolling late payment for the next 2 months.  We tried to get this handled and corrected with the mortgage company but had the worst time getting thru to a "live" person and when we did, it was someone who perhaps was working "outsourced" and the communication barrier was dreadful and resulted in alot of back and forth, right hand not knowing what the left one was doing, etc. until it was just exhausting to deal with them.  Finally, after several calls, my husband was able to speak with someone who corrected the account but couldn't remove the late.  Then, shortly after, our mortgage was sold from that company to another company but we have been on time and current since July 2012... no late payments, etc. This July will be 12 months "clean" (so to speak :-)  Anyway, how do I explain that clearly and succinctly to the loan processor to keep from having our loan denied before it even gets going good? She also wants a LOX for why our mortgage shows as sold on the CR ... which relates to what I just explained ... the mortgage company sold our loan to another mortgage company but we are still active under that same mortgage ... just different company. 

I've been feeling pretty good about things until I got this email today... now for some reason my stomach has been feeling like I'm going to a doctor's appointment ... full of butterflies.  Any help you can offer would be great! Thanks in advance guys.

[adymax]

I cannot help you here but I want to comment that it is ridiculous that they ask for LOX for why your mortgage loan was sold. You don’t have control over that and how you would you know why they did that. 

[shawneet]

Adymax, I absolutely agree with you there! I have no idea WHY the mortgage was sold.  But actually, I'm kinda glad that it was because the company that we had before was terrible.  There customer service was "none" ... you could get absolutely no customer service.  So, I'm somewhat glad that we did get another mortgager (who, so far, have been great. Their website is even more interactive and informative).  So, that LOX shouldn't be hard to write.  It's the one explaining the late payment that has my stomach in knots.  I want to give the information (truth, of course) that we were late but not 3x ... and that we are much more in tune with our finances now ... no more just missing a due date by not being vigilant.  We now are on the computer nearly every day (or every other) just verifying our payments have posted, upcoming due dates, marking it on the calendar, watching the bank account for auto debits, etc.  And not because of trying to obtain a mortgage but we began this last year because we wanted to be more vigilant with our accounts.  I just pray that this underwriting isn't too gruesome on us.  Good luck to everyone else in underwriting and with your LOXs...

[swtneka]

I think what u told us is perfect.

[stevieswife2011]

I would explain the reason exactly the way you explained it to us here its true and makes sense

[pdog661]

I think the LOX are sometimes scarier then they appear. 

They need some type of documentation for underwriting, and a simple response could be all they need.

I believe your explanation of the late payments was well thought out and should work well as a LOX.

As to why they sold your loan I would ask your LO what they expect as an explanation.  They may even have a template they could send you.  

Good luck to you.  Hopefully you get a CTC soon.  

[shawneet]

Thanks everyone for your input.  Well, I'm in the process of writing the LOX for the late payment and for the mortgage co. being sold ... which is basically a paragraph stating " I don't know why the mortgage company decided to sell our loan.  I was just a customer and was notified via mailed correspondence that XYZ Mortgage was being replaced by ABC Mortgage who would now be our new mortgage company and all payments should be sent to ABC Mortgage effective ___." 

So, here's my next question.  If our mortgage late will be 12 months old in July, why would the processor be getting our documentation together to send to underwriting? Shouldn't she wait until NEXT month (July or even August to be totally sure) to send it over, so that if they do happen to pull the credit report it won't show? Or do you think that because of the LOX the lender will be okay with the late being on there? This loan is FHA, btw, too... I was under the impression that FHA required no lates for the last 12 months; however, I read online yesterday that FHA really doesn't have a "mortgage late" requirement, per se, but it's the lender who has their overlay requirements regarding the late payment.  I just don't want to start this loan processing on the wrong track out the gate.  If it matters, we're dealing with SunTrust bank. Just in case anyone has dealt with them and can give me some advice.  We're also thinking of speaking with a LO from FBC Bank, just so we have something to compare to SunTrust.  Both of them are the builder's preferred lenders.  We're also trying to hold off until the 25th of this month to send in the requested 2 months bank statements ... these last two months look way better than any previous months ... ;-) Thanks again guys for any advice, etc. that you can give me. This whole process is stressing me out ... it's a sure-fire weight loss plan!! LOL

[NyssaHoney]

The best advice my MC has given me, is to keep my LOXs truthful, short and sweet.