What a roller coaster ride this is... I think I may puke! LO's and all else please read!

[Anonymous]

I never imagined buying a house was such a roller coaster ride. 

First I was worried about my scores, they ended up being ok for an FHA 702/727/769.  

Then I didn't think I could get a loan - got pre-approved 

Then I was worried I wouldn't find something that was in the area that I needed so I could keep my son in the same school.. Overcame that obstacle. Then the home inspection, then the appraisal.. whew...

The deal just went to the underwriter on Friday- From what I gather they just need to make sure the house appraises and such (which it does according to the appraisal and comps) 

My LO told me that she already sent my loan application to the lender and I was approved - the only items they asked for were title, appraisal and proof of assets - all of which were provided. 

AND NOW, I checked my credit on Sunday and an old collection account I have been making payments on is showing up as a judgment.. I am a wreck!!

MY LO told me that the underwriter has no need to run my credit again and that they used the report she ran when she submitted my loan application... Do I have anything to worry about?

Will anyone re-run my credit and see this judgment before closing?? 

I am going to call the owner of the debt that I have been making payments to and just pay the debt in full, will this help if they do re-run my credit report?

 I need help guys/gals... I am ill over this!!! Thanks!

Message Edited by JP75 on 02-16-2009 09:58 AM

[DallasLoanGuy]

LO should know their policies of pulling new credit or not.

Title companies have been known to find judgments during a social security search.... this may not be over 

[Anonymous]

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@DallasLoanGuy wrote:

LO should know their policies of pulling new credit or not.

Title companies have been known to find judgments during a social security search.... this may not be over 

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So paying it off pronto would probably be my best bet for "damage control"?

Message Edited by JP75 on 02-16-2009 10:38 AM

[ficonovice]

In the final 2 months before my settlement (on new home construction), I was hit with a tax lien. I spoke to a loan officer I knew and explained it to her and had her run my reports before the lien appeared. She said it may or may not come up in underwriting with the loan officer I'd been working with. She advised to pay the lien and I'd then be fine regardless.

That same day I had my loan officer re-run my credit. I didn't tell her about the lien, but told her another lender ran my reports and that I now wanted her to run them to minimize the inquiry hit (mortgage and car loans can be lumped together and only count as 1 inquiry if done within the same week or 2).

She understood and ran my reports and told me they wouldn't run them again. I said great, I didn't wan't them to be run again.

Fast forward to a few weeks before closing. I told her about the lien and she told me to be quiet. She didn't need to know and it wouldn't be a problem because they'd already verified everything.

I closed without a problem.

So, you may very well be okay, but it's probably best to share the information with your loan officer....

Good luck!

Message Edited by ficonovice on 02-16-2009 07:54 AM

[Anonymous]

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@ficonovice wrote:

In the final 2 months before my settlement (on new home construction), I was hit with a tax lien. I spoke to a loan officer I knew and explained it to her and had her run my reports before the lien appeared. She said it may or may not come up in underwriting with the loan officer I'd been working with. She advised to pay the lien and I'd then be fine regardless.

That same day I had my loan officer re-run my credit. I didn't tell her about the lien, but told her another lender ran my reports and that I now wanted her to run them to minimize the inquiry hit (mortgage and car loans can be lumped together and only count as 1 inquiry if done within the same week or 2).

She understood and ran my reports and told me they wouldn't run them again. I said great, I didn't wan't them to be run again.

Fast forward to a few weeks before closing. I told her about the lien and she told me to be quiet. She didn't need to know and it wouldn't be a problem because they'd already verified everything.

I closed without a problem.

So, you may very well be okay, but it's probably best to share the information with your loan officer....

Good luck!

Message Edited by ficonovice on 02-16-2009 07:54 AM

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Thank you for taking the time to share your experience!! It means quite a bit to me since I have been preparing for buying a house (working ior credit and paying off debt) for 2 years and then, this smacks me upside the head at the last minute,, YES, at the very last minute... my deal is currently in underwriting

I do not have a lien against me, just a judgment.. it is not a lien because I have made payment arrangments and am current. Should I default on my arrangments the judgment is there so then a lien can be implemented.

THANKS again for taking the time... it did help to cal the nerves (a little)

[Anonymous]

I believe that a judgement that has payment arrangement may be ok. I could be and often and wrong. Hopefully, the professionals will chime in on this one. Although if it were me, I would pay it off judge to maximize damage control.

[Anonymous]

Given that the house is only likely to go down in value, and the goal at this point should be to get anyone with a pulse and a paycheck paying the bank.... they should pass you.

If not, oh well. Their loss.

[Anonymous]

Teach & Bubble- thanks for the words

FYI: This issue dropped my fico score 87 POINTS to 685!!!

[WannaHouse]

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@Anonymous wrote:

Teach & Bubble- thanks for the words

FYI: This issue dropped my fico score 87 POINTS to 685!!!

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A judgement is a major ding on scores. I am not sure what to advise, but I think I would talk to my LO; but tthat's ME! I am very bad at keeping secrets like this.  It would keep me awake until I finally had my keys.

Message Edited by WannaHouse on 02-16-2009 11:16 PM

[ficonovice]

_________________________________________________________

JP75 wrote:

FYI: This issue dropped my fico score 87 POINTS to 685!!!

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Actually, I was "pleasantly" surprised that my fico scores "only" dropped between

60 and 80 points when my lien appeared. I thought they'd go down at least 100 points

so I'm still semi-pleased that my scores are all over 670....though with an open lien

it's questionable if I can get credit anywhere!