QUESTION ABOUT DEROG DATES

[nathan]

It is often said that va and fha like to see 12 to 24 mos derog free reports. I have a parking ticket collection from 2003 that hit my experian on feb 09 and another collection from 2006 that was paid in mar 09. Do va and fha lenders go by the dofd or dola?  I am trying to get a va loan this dec and i am wondering if these two paid colllections will be seen as recent derogs within the last 12 mos.

[ShanetheMortgageMan]

Manual underwriting goes by DOFD, but automated underwriting goes by DOLA (just thinks it's a recent derog). The parking ticket, even though from 2003, if it appears as a new collection, will be considered as such by manual underwriting too... so it would be best to get that corrected to back in 2003 before submitting an application for underwriting review.

[DallasLoanGuy]

agree with shane.

if the collection can be tied to an old account..... that old account date is what we use.

[Anonymous]

I was pre-approved for my VA loan already through automated desktop underwriter. How are closed zero balance zero owed accounts handled that are mis-reporting? My student loans through ISAC and IDAPP are reporting lates as of last month or this year on some of the accounts although these were all consolidated in 2005 (the date closed on my reports is correctly being reported) would that cause any issues when I go in for underwriting. I was told to payoff a collection, I did a settlement, I have documentation that I paid and the letter that the account was supposed to be reported as settled in full and the original creditor was to be notified as well, only to look at the report and instead of a zero balance it shows the 60% "remaining" balance. Is the letter I gave to my broker enough to have that collection overlooked? (I don't think paying that collection will ding my score since they, LVNV, were reporting monthly already so the date of last was always the previous month)

Part of me is freaking because FICO is dinging my score because of the "recent late payments" and my mid is just above 620 at 637. I realize I may be conflating two issues but with Experian being my mid I'm clueless as to how this is affecting my chances of the deal falling through. Disputing with the bureaus to get ISAC/IDAPP to fix their mistakes makes it worse each time and because of all this mis-reporting my wife cannot go on the loan because her mid was 613.

[ShanetheMortgageMan]

trueice you should be fine as long as the letter from the OC or CA covers everything.

[Anonymous]

Thank you very much, Shane.

Also (to the OP), sorry for the threadjack, didn't want to start a new one. 

[nathan]

Paid,Closed.    
Date Opened:
01/2007 Date of Status:
02/2009 Reported Since:
02/2009 Last Reported Date:
02/2009
Type:
Collection Terms:
1 Months  Monthly Payment:
$0 Responsibility:
Individual 
Credit Limit:
$330 High Balance:
N/A  Recent Balance:
N/A Recent Payment:
N/A  
Account History:
Collection as of Feb 2009

This is how it is reported on my exp. No fall off date or dofd. Ca claimed the parking ticket violation ocuured in 2003. I only got a notice from them in jan 09 and they reported after intercepting my state refund to cover the debt. They did not even bother to respond to my dv even though their letter said I had 45 days to respond. This is LDC BTW. 

[llecs]

Nathan, where did you pull your CR from?

[ShanetheMortgageMan]

nathan based on that info the manual underwrite would go by the 1/07 date (if the trade line itself is a collection, since a CA trade line is immediately a collection the first day it's reported) but an automated undewrite would likely consider the 2/09 date.

[Anonymous]

Nathan, I had an active collection and I still made it through desktop underwriter. My broker was running different scenarios and what seemed to throw a "Refer" flag was if my savings dipped below $5000 (condo is $250k). My file (at the time), 64k gross salary, zero credit card debt, 5k retirement savings (can only use 1k), 5k in savings, 8700 collection being reported monthly, also he ran it (I think, someone correct me if you cannot do this) as not requiring the funding fee since I am 10% disabled. We have not been late on a payment since 2006.