Question for LO's regarding recent late!

[Anonymous]

I was planning on applying for a home loan in the next couple months...I have been working on saving the 3.5%....now that's all messed up...because of this recent 30 day late from last month...I opened a new auto loan on Aug. 30th...and the dealership requested payoff for my old car loan...but because of Hurricane Gustav in Louisiana...it took the bank a little longer to give the payoff...I was told it would they would just put the request for the payoff in at $10500...over the amount of the balance on my credit report...just be safe...and they said the payoff can take from 14-30 days....but they don't take that long....well on September 9th...Hurricane Ike came to Texas...and I went to Louisiana for 2 weeks...the dealership was closed...and they opened back up on the 18th or something like that....but they were running on generators and they finance department was not open...I explained everything my rep at the old finance company and it seemed like she understood due to the circustances....anyway...payoff cleared on Sept. 29th....my original due date is the 21st...so the account was 38 days past due...I pleaded with my rep...and last Monday she checked the account and said no late was showing...and the account was still current....they report on the 1st of every month...so this Saturday...when I updated my report...the late was there...and it dropped my score 100 pts...so my question is...

Tomorrow I'm going to call...and my wife...to see if they will be willing to give me a letter saying the account was not late...and closed/paid/never late...due to the circustances....but...if they don't will I be able to explin this in a manual underwrite...or is this a easy denial...I have the papers showing when I purchased the car...and trade-in...payoff...and everything...will that even matter???...I know FHA wants no lates in the last 12 months....that's why I'm concerned...I can't wait another year to get into a home...it was not my fault...Please help!!!

[Anonymous]

First, that sucks.. Same thing happened to me last summer witht he payoff not posting on time and getting a late.

Unfortunately, you are legally responsible to make the payment until the payoff clears the account no matter what a lender or bank tells you.

That said, I would think that with the hurricane, you should have ample reason for the bank to remove the 30 day late notice.  (assuming past payment history was good...)

Also, I would think that if it got down to it, and this was the only thing that was in the way of a loan (proveable income, decent scores, down payment OK, employment history good, DTI acceptable) they could work this out.  

[Anonymous]

Thanks....yeah I had that loan for almost 2 years...NEVER late...and ALWAYS on time...but the lender is a predatory sub prime lender....and they don't really like helping people...but I haven't had any issues with them in the past...

[BrianB_The_Loan_Professor]

a letter of explanation may go a long way on something like this.

[Anonymous]

My wife has been calling all morning leaving messages...2 customer service representatives....and left messages for 3 supervisors...no call backs...but the 2nd customer service rep said they will not take off the late...even because of the circumstances....I knew this would happen...

So...I saw the LO say a letter of explaination can go a long way...but in this case...if I plan on apply in about 6 months...should I type this letter up now...and keep it...or do I need a letter from the dealership or something...I'm devastated from this...my score has dropped 100 pts...and it's going to be HARD to rebound from that in 6 months...all help is appreciated...thanks!!!