For the last three/four years, I have been working diligently to restore my credit history: paying down debt, I have removed collection accounts etc,, got a judgment vacated...you name it. I have also been scarping every last dime I have earned to save up money for a down payment on a house plus reserves and emergencies. My family and I live in a somewhat expensive area and I finally had found a house that was a fixer upper that is the best bargain in town. On 11/28, I checked my scores and my mid was at a 668 so I was really excited, my husbands was 685. The mortgage would also include the money we needed to fix up the house and our payments were not going to be much higher than what we are paying in rent right now for a moldy/crappy/tiny house so my family was all really excited.
So on 11/28, my mid was 668. On 11/29, by some weird happening, I checked my scores and they had dropped about 70 points!!! It took me a while to figure it out but I found out that two student loans I had with Nelnet were closed by them on 11/28. This triggered negatives on my credit reports:
-too few open accounts in good standing.
-Installment loan balances too high (I had paid 90% of the two accounts that were closed so this really messed up my debt ratios.)
-Using too much credit/credit balances too high
-All the money I had paid towards those two accounts and the original balances were no longer reflected on my current/open credit trade lines.
I applied for the mortgage anyway thinking I would be able to resolve this quickly. The new servicer of these two accounts, Fed Loans, has had the info on these accounts since early November and they have NOT reported these transferred accounts to the CRAs. I called Fed Loans and told them I needed them to call the CRAs ASAP and report those accounts as open but they said they were not scheduled to report that until January 31st. I told them I was supposed to close on my house by then and that I needed this information updated ASAP..they have been sitting on these two accounts for almost two months but they said all they could do was "send a task ticket" to their credit reporting team and hopefully they would get to it soon" but that it was no guarantee. I also called Experian to see if I could open a dispute and they told me they could not do this on an account that didn't exist yet in their system.
Since my mid now is a 605 (I needed a 620), the bank said they could not process anything on my loan until I could get my scores up. I am scheduled to close by 1/31 and since this contract has already been extended once, there is no way seller will extend again. I have already been told that several times. This is so depressing, I did all the right things, paid down these two accounts and through no fault of my own, they get closed, screw up my credit JUST when I was about to realize my long term dream of providing a decent home to my two kids....
If there is anything else I can do (I have already spoken to the CRAs, to Nelnet about this and they can't do anything), I am all ears. If I don't have those accounts as open/current by tomorrow, I will loose the house..
TU:552 | EQ:561 | EX:567 | Starting Score [LP from 08]