Losing Hope :(

[Anonymous]

Hi all! I'm so glad I found these forums. Here's my situation: Hubby and I weren't really in the market...just looking around on Sunday afternoons, etc. We stumbled across a bank owned JEWEL and decided we'd take a shot. We've had credit issues in the past but before even speaking to a broker/lender we paid any collections or debts we had and obtained documentation for anything we disputed. I thought that was a smart move to make...but in the days of auto underwriting even THAT'S not enough. You see, even with collections paid (and in most cases deleted) our scores aren't changing. TU and EXP are the absolute worst as they take their precious time updating anything. We were going to try rapid rescoring but were kind of iffy on spending that kind of cash with no guarantee on results. Then get THIS!!! (and this is the kicker) Our previous mortgagee is reporting that our loan was "settled for less than the full balance" it was "120+ days late" and "foreclosure was started". Of course I have not one...not two..but three letters from them stating the total opposite. I've tried disputing (for nearly a year) but that doesn't help. I'm so upset right now b/c we made an offer on this home (that was accepted) based on the information given by the broker we were working with...she has since disappeared. After constant e-mails this is the response I got from her: "I’ve had a chance to review the documents and review the credit. The loan would have to be able to make it through an automated underwriting system. I tried running it through now and it won’t work. It doesn’t like the credit history- I tried doing it in your name only as well. I went through the letters you provided and most of them are already corrected on your report. There are a few that I think will help your score increase. However, I’m not so much concerned about your score anymore. I’m more concerned about the actual credit history. If you look at your credit, there are not many accounts that are recent with a good 24 month history. For example, the car has only been in place for 8 months, the student loan looks like it was or is deferred and the lates on your mortgage (even though some of them are being removed) will not look good in the eyes of an underwriter. I highly recommend speaking to a credit counseling agency to help dispute and clean up the credit report. ******** has verified a few companies to be legitimate. They offer a free consultation. If they think they can help you and if you want to join their program, there is a small initiation fee and monthly fee until you finish or wish to cancel. Please let me know if you want me to have them contact you. The name of the company is Veracity." So now...I'm in a contract to purchase a home that I have no financing for. I'm afraid to even attempt to contact another broker b/c I honestly have no idea what my score is anymore. The mid WAS 572 and hubbys 568 (this is BEFORE anything even updated on our reports). I don't even know what advice to ask for anymore...I just needed to vent.

[Anonymous]

if it wasn't meant to be....then it wasn't mean to be. Don't worry......the housing slump will only get much worse before it get's better and there will be plenty to choose from in the future. This is good news for you, as you can work on your credit score. Good luck ok ? Hang in there.

[granny031350]

I would take the information you have obtained and then start working on it, like getting some positive tradelines to report etc.  Then in 12 months instead of losing hope you will be known as "I made it happen"

[Lel]

Echoing what others have said already, you should probably sit on the house buying sidelines for a bit and work on your credit reports. Obviously, there is one glaring error that needs to be resolved (the mortgage reporting as late/foreclosure); until this is settled, you are going to have difficulty obtaining a loan.

I hope that when you put an offer on this house, you made it contingent on securing financing. If not, then you may lose whatever deposit you put down. In the future, once your CRs are cleaned up and your scores get better, you can get preapproved for a certain loan amount and then use when shopping for houses.

Good luck.

[Anonymous]

That's the thing Lel...we had a pre approval letter in hand. (which is the only reason we made the offer anyhow)...NOT a pre qual...a pre approval. I have to "lol" at it actually...

[Anonymous]

Don't ever lose hope. We were in your same boat a few months ago. The key for us was to find a broker that would walk our app through underwriting. We could not pass the auto under writing either. But with good documentation and a little luck, our broker was able to push it through underwriting. It did take 28 days but who cares, we got the loan @ 6% fixed for 30 years.

[Anonymous]

Optimus...can I come hug you?!? LOL Did you guys go FHA? No seriously, I needed to hear that. I've really been having a hard time today. I DID talk to a broker right after I posted who says he can work with me (seeing as the crap on my credit report is "fixed" and it's just a matter of updating). He asked me to send over all docs (which I did) and he'd walk them over to the underwriter and call me with what he says. *fingers crossed* BY the way, I called the old mortgage company again and asked for a person who throughly understood the English language. After a few transfers I got a person in the US who agreed that my situation was one to be quite "ticked off" about and she gave me her e-mail and direct line and told me she'd personally find out where the ball was dropped. BS? Maybe, but her effort made me smile.

[Anonymous]

OurHouse, keep your head up!!!

Here is our story in a nut shell. We started our process mid Feb of this year .We've been riding this rollercoaster since than. My FICO was at 617 when we started , now its at 659..We got denied once due to our taxes. We went through another bank that did not want to fund the original price due to home values going down...Well, it turned out the initial bank we went with reviewed  our file again and noticed they did not look at my current paystubs which clearly states I am making more money than I have the last 2 years...We just got confirmation from our LO this morning that we have been cleared for Docs and should be signing them by Wed night !!!!!  WOW ! what a ride......Keep asking questions on this board and follow through with what you need to do.....Work on your credit and lower your CC debt as fast as possible...IT WORKS!!!! I know how youre feeling !!!!  dont give them the satisfaction!!!!!

If it can happen to us , IT will happen for you !!!!

DaddyMac is finally home !!!!!!!!!!

[Anonymous]

Yes, our mortgage is FHA in South Carolina. Our credit score used at the time was 576. We had to provide alot of documents, i.e. Bank Statements, Tax records, Letters of settlement, Letters of explanation, Statement of Rental History, Child Support Orders, and Divorce Decrees. We rode that roller-coaster right up until closing.

Our seller also provided the 3% down payment via Nea-Mia and paid the closing cost. They had also made a mistake on their web-site and listed the house for 6,000.00 less than it was suppose to be. They honored their mistake and quickly corrected the website, LOL.

[Anonymous]

Wow! The home we bid on was listed at nearly 100K lower than it was supposed to be. Since it was bank owned they honored that price (they want to get rid of it).

The broker I spoke to earlier called me back...it's a go. Of course I'm not celebrating anything until the key is in hand..so we'll see.

By the way...I'm from SC!