Hello all,
I am new to this forum so please forgive me if I am posting in the wrong area.
We are going through USDA Loan hell right now. I have a few questions but would like to tell my story first.
July 2014 we were pre-approved for a USDA Guarenteed Loan.
We found a house and our offer was accepted on July 18th.
Inspection and apprasal soon followed. Everything moved very quickly.
We made it throught our mortgage companies underwriting with a few conditions.
These conditions were bank records for 3 months, explinations of some medical collections and our foreclosure.
These conditions were met and our file was sent to USDA on Aug 28th.
September 3rd we heard back from USDA. They wanted explinations for why my son was transferring money every month. This was for his car insurance. He is 16 and it was cheaper for him to be on our policy. He just transfers his payment. This explination was sent back to usda. Usda then came back wanting an explinations for my husbands medical bills.
An explination was sent. Usda came back wanting us to pay off these debts. This was Thursday (September 25th) We were able to pay off all collections but one of them. We called to pay off this collection but was told that they sent it back to the originator (The medical office who seen my husband). They gave the number to the medical office and told us we would have to take care of it with them.
We called the office and they told us that they had written it off. They would not accept a payment after the debt was written off. So we called our LO and he told us he would schedule a conference call with the Collection agency so they could provide proof that they no longer were collection payment. We did this yesterday. USDA underwriter would not accept this and told us we had to pay this debt! BUT HOW?
Today we call the medical office again. Asking them to please look to see if they sent it to another collection agency. They took my husbands number and said they would call him back.
We recieved a call from them this afternoon. They said that their company was bought/taken over by another company and the original company along with all their debt was dissolved and their was no way we could make a payment or pay it off. The office manager said she would email us a letter stating that the debt was dissolved along with the company to send to our loan officer who in turn would send it to USDA underwriters. I forgot to mention that we are clear to close with this debt paid. Do you think that usda underwriters will accept this explanation and give us the clear to REALLY close?
Any info would be helpful. I hope understand what I'm trying to say 