Underwriter killed my loan????????????????

[Ron6262]

  LO just called and said the underwriter killed my loan because it appears to them that based on review of my credit that my Chapter 7 was discharged in 2012 and not 2010?

I told him that  submitted all my paperwork and how could he let this happen when we discussed the BK situation thoroughly and I submitted all the paperwork??  He seemed kind of lost and confused and stated that he thought I was under a 13 and not a 7??  Sounds like he may have made a mistake, he is calling the underwriter now and trying to fix things.

[StartingOver10]

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@Ron6262 wrote:

  LO just called and said the underwriter killed my loan because it appears to them that based on review of my credit that my Chapter 7 was discharged in 2012 and not 2010?

I told him that  submitted all my paperwork and how could he let this happen when we discussed the BK situation thoroughly and I submitted all the paperwork??  He seemed kind of lost and confused and stated that he thought I was under a 13 and not a 7??  Sounds like he may have made a mistake, he is calling the underwriter now and trying to fix things.

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Did you supply a copy of the discharge showing you were discharged in 2010? When were you discharged?

If you don't have it handy, you can sign up for PACER and get a copy of your entire BK case.

The underwriter is the final authority, but they only operate with the documentation they have in the file. If something is not provided, or is confusing or the underwriter doesn't know how to handle it (sometimes that happens), then they will either put in a stipulation for other docs or deny the file.  It doesn't mean that it can't be reconsidered with new information.

[Ron6262]

Just talked with the LO, apparently the problem is with the credit report, there are a couple of accts showing "Chapter 7 Bk in May 2012", I have no clue why and neither does the LO as to why its reporting that way.  I submitted all the BK paperwork and I assume he sent it to UW, who knows, now playing the waiting game.

[StartingOver10]

So you have tradelines not reporting correctly.

If you supplied your BK petition + your discharge you can prove the BK filing date, the tradelines and the discharge date. Sounds like the underwriter either didn't actually read the BK petition or took the CR reporting info as correct. We all know that there are errors in reporing info - regularly.

You might want to contact each one of the tradelines that are reporting incorrectly with a letter - they have to report the discharge correctly. If they don't it is considered a violation of the discharge injunction. That is the exact wording I used in my letters to the tradelines not reporting the correct date. In my case, it only took one letter to each creditor and they began to report correctly. (Report the correct filing date and discharge date) 

You might need to supply a LOX for the misreporting of the discharge date detailing each tradeline and the correct date just to spell it out for the underwriter (make it easy on them).

[webhopper]

Any mortgage guy worth his salt would be able to make your report get updated with Rapid Rescore.  If they aren't reporting the correct dates on your Credit Report, have the LO get involved in making sure that everything is correct. 

[Hammer23]

What state are you in? What mortgage product are you looking for?

[Ron6262]

    I am in Ohio, I am doing a 15yr FHA.  LO called back and said UW simply misread the CR.  WTH??  THree weeks of waiting and get a misread oopsie??

[Hammer23]

That happens more often than you think. I am an underwriter (not mortgage) and it has happened to me

Glad it was a mistake. I fyou are interested in reading more about Michigan Mutual's FHA program, just follow this link.

http://home.michiganmutual.com/forms/Guidelines%20and%20Policies/2012%206%2029%20%20MMI%20FHA%20Unde...

[Ron6262]

     THanks a TON Hammer!!   That was very helpful!!  I wish I could get my hands on a rate sheet, would love to know what the rate should be for a 15yr.  I may be in their 620 to 639 program if I cannot get two more points inthe next two weeks!!