Should I be worried????

[tamdugg1980]

After working day and night to repair my credit report (thanks to myFico ), I decided to see if I would be pre-qualified for a HUD home.  I was prequalified through Wells Fargo.   The worry comes in because my old car died and there was no way to fix it so I had to get a new car.  

My loan officer said that since the payments of my old car and my new car are only about 150 off that I should not be concerned and that I would still be able to close once I found a home.  

Well, a few days ago, I checked my credit report and noticed I had a 30-day late payment from my previous auto finance comapny.  Though the car was paid off, they reported it as 30-days late.  I have tried calling to find out why this is, to no response.  I have already written letters to the CEO, etc.  But I'm worried because there is a house that I want to put a bid on but I'm not sure how the 30-day late is going to affect the buying process.  I know that during the process the bank does a pull to make sure nothing has changed, what should I do?  

[cdtotten]

A recent late can kill the deal. I would contact your LO and let her know what happened now, rather than her finding out later.

[Booner72]

I would call that car company until I got through to someone.  Beg and plead for them to remove.  Otherwise, I doubt you will get approved.  Also, it probably tanked your score.

[tamdugg1980]

I've contacted them, and the've told me that the payment was late.  But it was not 30 days late.  My payment is due on the 2nd of the month and they received it on Oct 25th.  But they reported it as late anyway.  I've written letters hoping I can get a resolution but this finance company is notorious for being about things!!!!  I've been threatend by them, etc.  Of course this was before I knew about myFico and my rights as a consumer.  When you know better you do better as the saying goes.  I'll contact my LO and see what she recommends then take it from there.  Thanks for the comments all!

[IOBA]

From the lenders eyes, you were late.  Not by just a few minutes, or a few hours, or a few days.   You were significantly late.  

From the lenders yes, your late deemed reporting worthy.  

My suggestion is to call up, and explain about the old car, new car, and in the process of a mortgage when this happened.   Beg, plead, offer a free ride in your new car, to get them to remove the 30 day late.   

If they refuse, take it up the chain.  Do it in separate calls.

In the end, if they totally will not budge, let them know you be sleeping in your car, parked in front of their business because the 30 day late - while legit - was a mistake - killed your house deal and you are now homeless.  

[incognitony]

Isn't 23 less than 30?   

[IOBA]

They gave you a grace period to pay your cc bill, instead of demanding payment the day you charged on it.  

If you had been just a few days late, they might not have reported it.   But you were more than 3 weeks late paying the bill.

In the terms of the card, they explain that you have a "grace" period to pay the bill, usually 10-25 days after the statement closes.  

From a different perspective, if you loaned money to your best friend and the terms were to pay you back in full by November 20, 2011.   And your friend blew you off - wouldn't you be upset?   And if your friend FINALLY paid you in December 2011, wouldn't you say your friend was a month late paying you??   As the person receiving the money, you aren't going to add up the days late - you are going to say the person was a month late.  

I am probably not explaining it very well, but I hope it makes a little sense.   

For future, please remember that most lenders consider a partial payment and a late payment as the same.   And often report it to be 30 days late.

[IOBA]

Another example - an old friend use to pay 1/2 the mortgage, if anything at all.  His mindset was he paid something so it was better than nothing and the lender had to accept it.  

He refused to accept that if in Jan 2011, he paid $1000 of his $2000 mortgage, he was $1000 late.

Jan 2011 - 1k late.  30 DAYS late.

Feb 2011 - paid 1k and it was applied to his arrears, effectively no Feb payment was made.  (late fees and interest were due in addition to the Jan pymt)  60 DAYS LATE.

Mar 2011 - nothing paid.  90 DAYS LATE 

April 2011 - paid 1k and it was applied to his arrears, effectively making no April or March payment.  

He was shocked that they started to foreclose on him!   He thought throwing them a bone once in awhile was good enough.  But if you were the bank, would you think he was late?

For the record - I always advocate for paying something rather than nothing and for communicating with your lender.  Most times, they will appreciate the communication and the knowledge of what is going on.  And a lot of times, they are forgiving up front.

[Booner72]

Call the auto lender and ask them in general, what is their policy regarding reporting lates.  if they say they don't report lates til after 30 days, then you have a good case for a removal of the late.

but if they call and say they report lates after two weeks, three, whatever, then you will have a bigger fight.

I do agree w/ camping out though. 

[Anonymous]

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@incognitony wrote:

Isn't 23 less than 30?   

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Yes but the "30 day" grace period isn't always exactly 30 days.