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Closed Account with balance but no reports in 2 yrs

New Visitor

Closed Account with balance but no reports in 2 yrs

At the moment I'm in the process of getting pre-approval for a VA Loan. But they are asking for a letter from a mobile home mortgage company. Stating that we voluntarily gave up the mobile home. Or that we do not owe on the mobile home. On my credit it shows closed but with a balance. I'm afraid to call this mortgage company because of them wanting to collect the balance. I know for sure they sold it back to the trailer park. If I do not call, can I still get approved for a VA Loan. It's been two years for the mobile home account has been closed.
Message 1 of 3
2 REPLIES
Community Leader
Senior Contributor

Re: Closed Account with balance but no reports in 2 yrs

You may want to ask a moderator to move this question to the mortgage forum.  Your question isn't really about FICO scoring, but about how VA loans and lenders work. 

 

I am no expert there, but as far as I can tell, they have asked you to call the company handling the mobile home debt.  You don't want to, because you know they will not say what the VA lender wants to hear.  The answer would seem to be, "No they will not approve you unless you call, because they have told they won't."  But I may be missing something.

 

Anyway, there are lenders who hang out in the mortgage forum and they may be able to advise you.

Message 2 of 3
Community Leader
Epic Contributor

Re: Closed Account with balance but no reports in 2 yrs

The requirment for a current letter stating status is most likely a requirement that will not be satisfied by simple reference to your credit report.

The fact that the creditor sold the mobile home does not mean they had no loss, and thus that you have no remaining debt.

 

What is the net debt remaining after deduction of the recovery price from the loan balance?  

That may not have been properly  updated in your credit report, and is likely what your mortgage underwriter wants to know from the creditor.

That info could only come from the prior mortgage holder, as they did the transaction.

 

Message 3 of 3