Preapproval...with conditions

[co791]

My tale of woe.......Foreclosure in 07  with charge offs.....  Settled most of my charge offs but had a few left over from back then...My fico goes to 648 this month, so I decided to attempt my dream, owning a home again.....   I get a preapproval for 265,000   .....and a very nice e mail from the broker announcing it to me...All seems good...  Until he calls me....." Oh yeah well you have to take care of a few of these charge offs first......."   He gives me the # for an atty that handles settlements with the creditors and I authorize the atty to go to work on it.....

           How long does this process take?   I was pretty excited looking at homes right up until this...because if I find a home I like....I really cant go very far can I until this is done....  Has anyone else gone through this and succeeded?   I really could use some encouragement right now  

Thanks in advance!

[Anonymous]

Hi there, my wife and I had delt with same issues your dealing with back in Feb of this year.

She had some old charge offs that had to be payed and we knew we wanted a mortgage by

the summer of this year. After contacting the collectors on up to six different accounts we payed

partial and full payments on those accounts. Each account took only a couple days on average

to process our payments. Then with in three to four weeks we had proof of payment on those accounts.

Keep in mind though that the collection agencys have up 30 days to report those account settled 

or payed to trans. ex and eq. dont quote me on the 30 day time frame it could be longer.

[co791]

Thank you, I guess I better take a month off from house hunting until this gets settled. Did you finally get your mortgage?

[Anonymous]

No house yet but we do have preapproval letters from two banks, and believe me we let 

both of them know thats the case. It only can benifit you to play them against each other

for the best locked rate and closing  cost you can negotiate. But dont worry about your collections

as far as time goes. But if u can afford to pay them do it the sooner the better. You may take a short 

term points hit on your score but your talking only a 60 to 90 period before your score rebounds and is 

on the up tick. And any bank worth there word will work with you just as long as you can show proof of

account s being payed off before closing. 

[co791]

Good to know! Did you apply using 2 different brokers? Or did you just go to 2 different banks on your own?