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New Contributor
keyelove
Posts: 59
Registered: ‎03-30-2013
0

So Disappointed, Discouraged and Simply Sad ;-(

Ok so we got word back from our lender today that we are denied. I'm so freakin disappointed and discouraged. You can see from my signature how far we've come with getting our credit in order so that we could apply. I feel like nothing I do is going to be good enough. I've gotten rid of everything I possibly could. The only things left is a student line. One TL reporting from the servicer and one for the guarantor but it's paid and been paid since 2010. Also my chapter 13 that was dismissed in 2011 after 4 1/2 years of payments. I originally filed in 11/2007. Everything else is paid as agreed. We have well over 3 tradelines that are at least 4 years old paid as agreed never late. My middle is 674 and DH is 624.

 

Here's the deal - so DH just had his chapter 13 discharged 5/2013. I guess BMG music found out and reported a $48 collection on his credit report as a new collection. When the lender pulled credit we had no knowledge of this was reported. A week after application we got an alert and called them up. It was a debt from back in 2007. He filed BK in 2010. We faxed over BK papers and they immediately submitted to have it removed. Keep in mind we didn't know it was reporting on the lender's credit report and was wondering why my DH's score dropped from 655 middle.

 

Then there's the dreaded over draft protection. I wrote a LOE for this and thought we were good. We applied on 6/14/2013 and up until today we were thinking everything was good because they came back and asked for a few more LOEs that were not related to the above to issues. They couldn't connect the zero balance student loans, meaning who was servicer and guarantor since they both were reporting. The other two issues that were denied for never came up.

 

Our LO advised that our income, DTI, payment shock and all other aspects were in line. We proved 12 months of rent and everything.

 

I'm at a complete and utter loss here. We were doing new construction and wasn't set to close until Nov/Dec. By that time, we could have shown no overdrafts on the bank statement and of course BMG is gone now and I'm sure he should get his points back.

 

Since we went FHA and they denied us I don't think we can go anywhere else. If we don't do new construction now, we won't be able to cause rates are going up and our lease is technically up in August. December would have been our drop dead date of moving. We're paying like $2600 a month in rent and we've been doing this for like 3 years now. This is such a bummer and I simply can't wrap my head around it.

 

Sorry for the long post but I'm just beside myself right now.

 

 


Starting Score: TU - 556 & EF - 552 & EXP - 591
Current Score:TU - 614 & EF - 573 & EXP - 591
Current Score 6/14/13 (MyFico):TU-98 - 631 & EF - 643 & EXP-08 - 633
Current Score 6/14/13 (Lender Pull):TU - 704 & EF - 643 & EXP- 674
Goal Score: 680


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Contributor
adymax
Posts: 147
Registered: ‎04-16-2013
0

Re: So Disappointed, Discouraged and Simply Sad ;-(

Very sorry to hear this.  What exactly is the reason they denied you? You may still try another lender. 

New Contributor
keyelove
Posts: 59
Registered: ‎03-30-2013
0

Re: So Disappointed, Discouraged and Simply Sad ;-(

Issue #1 - The BMG Music collection from 2007 popped up on the credit. Imediately after becoming aware, we had it removed right away as it should have never been placed.

Issue #2 - The use of overdraft protection showing on our bank statements.

 

As for new construction, today really was our last day to get approved. Now we have to go get our money back.

 

We were going through FGMC.


Starting Score: TU - 556 & EF - 552 & EXP - 591
Current Score:TU - 614 & EF - 573 & EXP - 591
Current Score 6/14/13 (MyFico):TU-98 - 631 & EF - 643 & EXP-08 - 633
Current Score 6/14/13 (Lender Pull):TU - 704 & EF - 643 & EXP- 674
Goal Score: 680


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Contributor
adymax
Posts: 147
Registered: ‎04-16-2013
0

Re: So Disappointed, Discouraged and Simply Sad ;-(

What overdraft protection?   Did you use overdraft protection on your checking account?   This is weird because our file is in manual under writing (pre approval )for a new construction and  our LO never asked for our checking account statements but we have funds in our savings account which statement we provided.  

 

You can try go with a different construction company and lender.

New Contributor
keyelove
Posts: 59
Registered: ‎03-30-2013
0

Re: So Disappointed, Discouraged and Simply Sad ;-(

Just talked to the LO and now they are sending the file to the CEO.

 

I'm so perplexed over this situation. We have no late payments, no collections. I thought that was the whole point of FHA for people that had issues in the past. Past being the operative word. When I say past I'm saying over 4 years ago and all resulting from or a part of the BK. I mean there is absolutely nothing after the BKs were filed.

 

I just don't know what to do. I know you can't compare yourself to others, but I've seen stories on the boards that "appeared" to be worst situations getting approved.

 

Does anybody have any thoughts??


Starting Score: TU - 556 & EF - 552 & EXP - 591
Current Score:TU - 614 & EF - 573 & EXP - 591
Current Score 6/14/13 (MyFico):TU-98 - 631 & EF - 643 & EXP-08 - 633
Current Score 6/14/13 (Lender Pull):TU - 704 & EF - 643 & EXP- 674
Goal Score: 680


Take the myFICO Fitness Challenge
Established Contributor
jadeite788
Posts: 510
Registered: ‎09-25-2009
0

Re: So Disappointed, Discouraged and Simply Sad ;-(


keyelove wrote:

Ok so we got word back from our lender today that we are denied. I'm so freakin disappointed and discouraged. You can see from my signature how far we've come with getting our credit in order so that we could apply. I feel like nothing I do is going to be good enough. I've gotten rid of everything I possibly could. The only things left is a student line. One TL reporting from the servicer and one for the guarantor but it's paid and been paid since 2010. Also my chapter 13 that was dismissed in 2011 after 4 1/2 years of payments. I originally filed in 11/2007. Everything else is paid as agreed. We have well over 3 tradelines that are at least 4 years old paid as agreed never late. My middle is 674 and DH is 624.

 

Here's the deal - so DH just had his chapter 13 discharged 5/2013. I guess BMG music found out and reported a $48 collection on his credit report as a new collection. When the lender pulled credit we had no knowledge of this was reported. A week after application we got an alert and called them up. It was a debt from back in 2007. He filed BK in 2010. We faxed over BK papers and they immediately submitted to have it removed. Keep in mind we didn't know it was reporting on the lender's credit report and was wondering why my DH's score dropped from 655 middle.

 

Then there's the dreaded over draft protection. I wrote a LOE for this and thought we were good. We applied on 6/14/2013 and up until today we were thinking everything was good because they came back and asked for a few more LOEs that were not related to the above to issues. They couldn't connect the zero balance student loans, meaning who was servicer and guarantor since they both were reporting. The other two issues that were denied for never came up.

 

Our LO advised that our income, DTI, payment shock and all other aspects were in line. We proved 12 months of rent and everything.

 

I'm at a complete and utter loss here. We were doing new construction and wasn't set to close until Nov/Dec. By that time, we could have shown no overdrafts on the bank statement and of course BMG is gone now and I'm sure he should get his points back.

 

Since we went FHA and they denied us I don't think we can go anywhere else. If we don't do new construction now, we won't be able to cause rates are going up and our lease is technically up in August. December would have been our drop dead date of moving. We're paying like $2600 a month in rent and we've been doing this for like 3 years now. This is such a bummer and I simply can't wrap my head around it.

 

Sorry for the long post but I'm just beside myself right now.

 

 


Sounds like it was the over draft protection not the collection on BMG.  Some lenders require anywhere from 2-6 months of bank statements showing no overdrafts before applying.  Mine only needed one month. 


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

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Contributor
Amythyst
Posts: 139
Registered: ‎01-22-2013
0

Re: So Disappointed, Discouraged and Simply Sad ;-(

So, did you have actual overdrafts with NSF fees or were you using overdraft protection?  I use my checking account line of credit all the time.  Due to timing of things usually... like I have a bill due on the 28th of the month but I don't actually get paid till the 30th ... but my loan officer said that wasn't a problem at all.  She said the overdraft line of credit is there to prevent you from overdrafting and getting an NSF fee.  She said the only thing they care about is if I actually overdraw an account and get charged a fee for it.

 

I would actually consult with another lender if you find the one you have now will not relent on this... if in fact you do have the overdraft protection.

Regular Contributor
JMMD
Posts: 220
Registered: ‎05-12-2013
0

Re: So Disappointed, Discouraged and Simply Sad ;-(

Could you try again with a different lender andd use a VOD instead of bank accounts? Scroll down to the section titled: Some useful tips regarding using assets for a mortgage

 

http://www.thetruthaboutmortgage.com/assets-and-reserve-requirements/



My starting score 617-current 643 and husband's 576-current 624. Rebuilding after BK

In the garden until June 2015
New Contributor
keyelove
Posts: 59
Registered: ‎03-30-2013
0

Re: So Disappointed, Discouraged and Simply Sad ;-(

It was overdraft from savings but there is a fee associated with it. I guess I figured since we were closing in Nov/Dec that they could condition for that. I guess I was wrong.

 

My DH and I are exploring more options since the current contract we have has to be cancelled to get our money back we have like $14K on the line. We were doing like 5% down in total so had to bring more to closing.

 

Anybody have any suggestions for lenders.


Starting Score: TU - 556 & EF - 552 & EXP - 591
Current Score:TU - 614 & EF - 573 & EXP - 591
Current Score 6/14/13 (MyFico):TU-98 - 631 & EF - 643 & EXP-08 - 633
Current Score 6/14/13 (Lender Pull):TU - 704 & EF - 643 & EXP- 674
Goal Score: 680


Take the myFICO Fitness Challenge
Regular Contributor
FLAJenn
Posts: 183
Registered: ‎09-20-2012
0

Re: So Disappointed, Discouraged and Simply Sad ;-(

[ Edited ]

embrace home loans  or have you tried a broker?


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