Will multiple mortgage lates mean a denial?

[Anonymous]

Thank you for your reply.

My only debt at this point is my current mortgage and my student loans, both of which are very manageable with my current income, so 

I am not looking at bankruptcy.

I was just wondering how multiple mortgage lates might cause someone to be worse off or in the same credit boat as someone

who has foreclosed or claimed bankruptcy in terms of securing new financing. I guess I presumed that late payments and an ultimate

return to "on-time" payments would result in quicker credit recovery than if I had foreclosed.

Some people that I have spoken to have suggested that my ability to get financed for a future mortgage might be in line

with someone who is recovering from a bankruptcy or foreclosure.

I do, however realize that everyone's situation and profile is unique and that all I can do is plug away and move forward from this point on.

I think that the suggestion to prepare an explanation down the road is a good one. Again, I am 12-15 months away and I have much work

in front of me! This is a worthy journey, so thank you to everyone who has taken the time to reply and share their own stories! I am learning so much!

[DallasLoanGuy]

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@JSHammet wrote:

Can I even qualify for another mortgage?

I am wondering about the underwriting process once I have a qualifying credit score.

 Looking to qualify for another mortage in about a year. 

I am salaried at $82K- started job last month, new job (but not new to the field)

The following are mortgage lates:

I have 30 day lates for:  8-12, 9-12, 11-12 

I have a 30 day late for every month in 2013, except for May and July

I have a 30 day late for 1-14, 2-14, 5-14

I have a 60 day for 3-14, 4-15, 6-14, 7-14, 8-14

and one 90 day in 9-14

On October 26th, I paid $5624 and brought it current, 

I have one paid judgment on my report,  

$50 paid medical collection,

few lates on student loans that are going into repayment in January (previously deferred) 

and a car that was paid in full in 2011, but reporting as a paid charge off since it was late.

Is 12 month on-time payments enough?

Any suggestions or thoughts?

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i would not even consider this file.... it would die on my desk and i wouldnt bother the underwriters.

[Calidreaming]

JSHammet, you are doing all the right things and are well on your way back to financial stability.  I've read your posts in  other threads and I'm inspired by your determination to move on with your life.  It may take you a little bit longer to get in a new house than you'd hoped, but that may be a good thing for you not to be tied down by a mortgage at this juncture in your life.  A delay of couple years is not going to mean much in the scheme of things. 

[coterotie]

DLG,

I am a little surprised at your answer.

Looking out 18 months from now, we have a homeowner who, through no fault of her own suffered job loss and marriage difficulties.  During a 12 to 18 month period starting 4 years ago, she scraped together enough money to survive and avoid foreclosure and bankruptcy.  Once she was re-employed, she immediately brought the mortgage and all debts current and has maintained them current for nearly 2 years and has used debt responsibly during that time.  Instead of choosing an easier path, she chose the difficult path of honoring her obligations.  Depending on the equity in the new house loan and availablity of reserves at that time, I would think this would be a pretty good file.

BUt then I think like an old time lender.

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@DallasLoanGuy wrote:

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@JSHammet wrote:

Can I even qualify for another mortgage?

I am wondering about the underwriting process once I have a qualifying credit score.

 Looking to qualify for another mortage in about a year. 

I am salaried at $82K- started job last month, new job (but not new to the field)

The following are mortgage lates:

I have 30 day lates for:  8-12, 9-12, 11-12 

I have a 30 day late for every month in 2013, except for May and July

I have a 30 day late for 1-14, 2-14, 5-14

I have a 60 day for 3-14, 4-15, 6-14, 7-14, 8-14

and one 90 day in 9-14

On October 26th, I paid $5624 and brought it current, 

I have one paid judgment on my report,  

$50 paid medical collection,

few lates on student loans that are going into repayment in January (previously deferred) 

and a car that was paid in full in 2011, but reporting as a paid charge off since it was late.

Is 12 month on-time payments enough?

Any suggestions or thoughts?

---

i would not even consider this file.... it would die on my desk and i wouldnt bother the underwriters.

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[Anonymous]

2 years minimum. Even then I think it will be a fight depending on your scores.
Foreclosures are indeed bad but theyre typically isolated incidents that last 4-5 months. 24 straight months of lates will be hard to explain away as hardship. Most people who know they will face long term hardship exit their mortgages one way or another. Through sale or foreclosure. The bank sees foreclosure as 4 missed payments. 24 straight is a whole different conversation.

[ShanetheMortgageMan]

As soon as the last late payment is 12+ months old, and assuming you have 12 months of on time payment since then, you should have a decent shot at getting approved.  Just had a loan denial for late mortgage payments within the past 12 months (less than you have had) and the underwriter just told us to re-apply after there was no lates in the past 12 months.

[ap84]

I am in the same boat as you. They will look at the last 12 months, and I was told you are allowed 1 30 day late. It is possible. Are you going to FHA route?

[Anonymous]

Thank you to everyone for your reply. I am so grateful for everyone's feedback.

Here is a story:

When I was at my old job, I was interviewing candidates for a nurse manager position for our pulmonary unit at my hospital.

HR called up to my office one day to tell me that my 2:30 pm interview called to say that she would be an hour late and they

asked if I could still see her or if I wanted to reschedule her. The HR lady smirked and said, "I can't believe that you can't

even get to an interview on time; that's not good."

I told HR that I could still see her when she got there.

When this woman showed up one hour and ten minutes late, she was dishelveled and apologetic.  It turns out that the

woman had spent the entire morning downstairs in the hospital emergency room with her mother who had fallen down

some steps that morning and while waiting for her mother to be admitted with a hip fx, her daughter's school called

to tell her that her daughter needed picked up because she was sick and running a fever. This woman went to her daughter's

school and when she was certain her daughter was okay, she headed out for her interview. On her way to her interview,

she noticed her tire didn't feel right and when she pulled over, sure enough- it was flat. The woman said that her husband

had taught her how to change a tire and she decided that it would be quicker for her just to do it herself.

As the story unfolded, I was in awe over this woman's genuineness and perserverance. We immediately connected

and I was inspired that this woman would still show up with a bit of dirt on her clothes and an overlooked tire smudge on

her collar! She had a great resume and an amazing attitude; this was definitely the woman I wanted to run the pulmonary

unit!  

The story ends like this: I hired her and she ran that pulmonary unit with the same spirit that brought her to the interview

that day. (She has also become a dear friend over the years)

The point to my story is this:

We can see what the HR lady saw about this woman or we could see what I saw about this woman.

It is just a different view. Was she the woman who couldn't even get to the interview on time? or was she the woman who overcame

so much and got to the interview in spite of it?

I guess how my story will be viewed will just depend on how the underwriter choses to see it.  Did I screw up or did I preservere? 

Am I a risk that they might take?  Who knows, really. I guess I can keep doing the right thing and see what happens down the road!

Thank you everyone!

[Anonymous]

Yes..... I will go the FHA route. I think I might have a better shot at it.

What about you?

[coterotie]

I wouldn't get locked in on FHA unless I had a decent amount down to avoid the very onerous PMI these days.  If I had the minimum required down I might give it a shot.  Shane says he can write you conventional that's the way to go.  Additionally, google HIPAA method and wipe out that collection.  It doesn't technically matter, but you want that file clean as a whistle when you do apply.  The impact to your score for all the 30 days will completely disappear after 24 months.  I would also suggest you get more credit lines, so they swamp the other lates.  That 90 will haunt you for a while, likely keeping your scores below 720.  But easily north of 690.

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@JSHammet wrote:

Thank you to everyone for your reply. I am so grateful for everyone's feedback.

Here is a story:

When I was at my old job, I was interviewing candidates for a nurse manager position for our pulmonary unit at my hospital.

HR called up to my office one day to tell me that my 2:30 pm interview called to say that she would be an hour late and they

asked if I could still see her or if I wanted to reschedule her. The HR lady smirked and said, "I can't believe that you can't

even get to an interview on time; that's not good."

I told HR that I could still see her when she got there.

When this woman showed up one hour and ten minutes late, she was dishelveled and apologetic.  It turns out that the

woman had spent the entire morning downstairs in the hospital emergency room with her mother who had fallen down

some steps that morning and while waiting for her mother to be admitted with a hip fx, her daughter's school called

to tell her that her daughter needed picked up because she was sick and running a fever. This woman went to her daughter's

school and when she was certain her daughter was okay, she headed out for her interview. On her way to her interview,

she noticed her tire didn't feel right and when she pulled over, sure enough- it was flat. The woman said that her husband

had taught her how to change a tire and she decided that it would be quicker for her just to do it herself.

As the story unfolded, I was in awe over this woman's genuineness and perserverance. We immediately connected

and I was inspired that this woman would still show up with a bit of dirt on her clothes and an overlooked tire smudge on

her collar! She had a great resume and an amazing attitude; this was definitely the woman I wanted to run the pulmonary

unit!  

The story ends like this: I hired her and she ran that pulmonary unit with the same spirit that brought her to the interview

that day. (She has also become a dear friend over the years)

The point to my story is this:

Nobody's view is wrong. We can see what the HR lady saw about this woman or we could see what I saw about this woman.

It is just a different view. Was she the woman who couldn't even get to the interview on time? or was she the woman who overcame

so much and got to the interview in spite of it?

I guess how my story will be viewed will just depend on how the underwriter choses to see it.  Did I screw up or did I preservere? 

Am I a risk that they might take?  Who knows, really. I guess I can keep doing the right thing and see what happens down the road!

Thank you everyone!

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