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Late Mortgage Payments

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Anonymous
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Late Mortgage Payments

In November we applied for a new mortgage. This is for a new build and in order for the builder to help us with closing costs we have to go through their financing company. They are able to put our info in through a automated underwriting system to see if there would be any problems. They did a hard pull of our credit report and we passed. Well we had a dispute listed with our mortgage company on the credit report. This dispute was put on by our current mortgage company because I had called and ask a question. We had the disputes removed and they new lender pulled another report. Now our scores are below 640 which is their requirement. The new mortgage will be under my husbands name only. In November his scores were 641, 627 & 652. In December our 2nd mortgage reported we were late in November. We call them and they said we have been a month late for the last year. What..... They have been reporting us on time until November. Didn't realize we had missed a payment (if you saw their statement you would understand). As of January 10 my husbands scores are 588, 573 and 657. The LO called and told us that since we now had a 30 day late on our 2nd mortgage and our scores dropped they will have to do a manual underwrite with the credit report from November. We had 5 late payments with our first mortgage in 2009 (we changed banks and didn't realized we were not using the online system correctly). We have made all payments on time since. The LO called and told us that because of the late pays in 2009 they would not approve our loan. We tried getting the 2nd mortgage company to do a goodwill adjustment but refused. We sent an email to the CEO on Thursday and just waiting to see what happens. Could someone help me understand why we failed manual underwrite, but passed automated underwrite. I thought as long as you paid your mortgage on time for 12 months previous late pays would not be an issue. Also can the 2nd mortgage company go back to 2011 and change our pay history from paying on time to 30 days late? Thanks!
Message 1 of 5
4 REPLIES 4
IOBA
Senior Contributor

Re: Late Mortgage Payments

1.  Yes, sadly, creditors can go back and change history.

2.  If the 30 day late was for November 2011 on the 2nd mortgage, it would not have shown in November 2011  when you applied for the new mortgage.  It most likely would have updated in Deceimebr 2011, thus dropping the scores.

3.  Have you pulled your credit reports and looked at them?  You can get them for free since you were denied credit (the mortgage for the new house).

4.  Different lenders have different criteria for lates and how they look at them.  Which bank was the lender with?

Message 2 of 5
Anonymous
Not applicable

Re: Late Mortgage Payments

Our credit report was pulled on 11/8/11. The late payment appeared on 11/10/11. Our payment is due on the 17th When we called the mortgage comany they told us that it was for September 2011 late pay. We did get new copies of our credit report. We talked to the LO today. They have a department that helps you get your scores up. We only have one credit card with a 400 credit limit that has a 237 balance and two medical collections totaling 570 from last year. I am hoping we can PDF the collections and pay the credit card down to 8.00 to bring our scores up. She said they may be able to get it approved if we can get our scores up. Not sure of the lender as this is for a new build and they have several lenders.
Message 3 of 5
IOBA
Senior Contributor

Re: Late Mortgage Payments

1.  Find out who they are dealing with.   Each lender is different.   If we knew who you were dealing with, we could give more specific advice.

2.  Definitely pay down the cc and stop using it for a bit.

3.  Do not apply for any new credit.

4.  PFD with the collections ASAP!

5.  Get caught up on your current mortgages.

6.  Goodwill for a deletes on the lates.   

 

What do you plan do with your current house that has 2 mortgages?

Message 4 of 5
Anonymous
Not applicable

Re: Late Mortgage Payments

1. We will find out 2. We are going to pay it off this week 3. We were defiantly not going to apply for new credit - never had plans to 4. We will send a PDF 5. All mortgages are caught up. 6. Did goodwell letters to first mortgage they absolutely refuse to do it. Just sent the CEO of the second morgage a goodwill letter. Just waiting to hear back. The builder we are using has a partnership with a company that well rent your home. They then sub-rent it. They take care of everything. They guarantee you a check every month even if the renters do not pay them. We can do this for up to 6 years. They try to find people who want to do rent to own. That way we can sell the house and would not have to pay commission to a realtor. It is a great program. This program does not cost us anything. They get a commission from the builder.
Message 5 of 5
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