Credit Cards Center Credit cards from our partners
Reply
Valued Member
Posts: 33
Registered: ‎05-20-2012
0

One 30 late mortage - How long to recover?

There was confusion this month on our mortgage payment and we ended up paying late.  My husband and I both took a 32 drop on Experian for a 30 day late.  I'm sure the other two will follow.  I seriously doubt they will GW and remove it. My question is how long will it take to recover from the mistake?  We wanted to sell and buy a new house this summer.  Will a larger down payment allow us to buy a new home? Is there anything we can do to offset this?

 

I'm so upset with myself about this.

Capital One Quicksilver | Capitol One Platinum | OverStock | Gamestop
Current 9/28/16 Experian 659 Equifax 646Transunion 633
Starting over...06/13/2015
Experian 537 Equifax 544 TransUnion 525
Valued Contributor
Posts: 1,346
Registered: ‎06-30-2016
0

Re: One 30 late mortage - How long to recover?


mithrildreams wrote:

There was confusion this month on our mortgage payment and we ended up paying late.  My husband and I both took a 32 drop on Experian for a 30 day late.  I'm sure the other two will follow.  I seriously doubt they will GW and remove it. My question is how long will it take to recover from the mistake?  We wanted to sell and buy a new house this summer.  Will a larger down payment allow us to buy a new home? Is there anything we can do to offset this?

 

I'm so upset with myself about this.


A 30 day late indicates that a second mortgage payment came due and the one prior still wasn't paid. A full 30 days after the payment due date has to lapse. It sounds like if it was just a small mixup, there shouldn't be a 30 day late remark. 

 

If it really was 30 days late, it will weigh less in 6 months, then a year, and so on. It will still be pretty damning this summer, score-wise.


EX08 659 EQ08 660 TU08 695 Starting: mid 300'sGoal: 700
Valued Contributor
Posts: 4,263
Registered: ‎04-11-2016

Re: One 30 late mortage - How long to recover?

OP, why do you think they wouldn't remove it with GW?  GW adjustments to mortgages are some of the easiest to get from my experience, especially if you are anywhere remotely near to the middle of your mortgage (a 30 year) as it means you've paid on time for a long time already (positive history) and you still have a long time to go being their customer.  If you send a GW letter and explain how you've been on time for X years so far and that you look forward to Y years of a great relationship going forward I think you stand a very good chance at seeing that minor 30 day removed.  Obviously, this depends on the lender. 

 

A 32 point drop is actually quite minor for a late payment when it initially hits your reports.  I've seen it more like twice that and 32 points being more of where you stand in a year or so.  All profiles are different though.  It will take 7 years for it to completely come off of your report though and will keep that account "negative" and your scoring bucket won't be favorable until it's completely gone, even if your score does rebound most of the way during that time.  It's always in your best interest to work on getting it removed.

Valued Member
Posts: 33
Registered: ‎05-20-2012
0

Re: One 30 late mortage - How long to recover?

[ Edited ]

I am with Bank of America and they have a page ( GoodWill.) on their website that specifically says they won't. I'll ask on the mortgage page and see if they just post this to discourage you from asking.

 

Thanks for asking!  I hope I get a good answer.  My scores drop from 35-50 points from this.


BrutalBodyShots wrote:

OP, why do you think they wouldn't remove it with GW?  GW adjustments to mortgages are some of the easiest to get from my experience, especially if you are anywhere remotely near to the middle of your mortgage (a 30 year) as it means you've paid on time for a long time already (positive history) and you still have a long time to go being their customer.  If you send a GW letter and explain how you've been on time for X years so far and that you look forward to Y years of a great relationship going forward I think you stand a very good chance at seeing that minor 30 day removed.  Obviously, this depends on the lender. 

 

A 32 point drop is actually quite minor for a late payment when it initially hits your reports.  I've seen it more like twice that and 32 points being more of where you stand in a year or so.  All profiles are different though.  It will take 7 years for it to completely come off of your report though and will keep that account "negative" and your scoring bucket won't be favorable until it's completely gone, even if your score does rebound most of the way during that time.  It's always in your best interest to work on getting it removed.


 

Capital One Quicksilver | Capitol One Platinum | OverStock | Gamestop
Current 9/28/16 Experian 659 Equifax 646Transunion 633
Starting over...06/13/2015
Experian 537 Equifax 544 TransUnion 525
Valued Contributor
Posts: 4,263
Registered: ‎04-11-2016
0

Re: One 30 late mortage - How long to recover?


mithrildreams wrote:

I am with Bank of America and they have a page ( GoodWill.) on their website that specifically says they won't. I'll ask on the mortgage page and see if they just post this to discourage you from asking.

 

 




 


No doubt that is there not really to discourage you from asking, but to let customers know that the expectation is that they will never make a late payment.  They will make GW adjustments though.  It may take some work, but they'll do it.  Just pressure them.  Use my Saturation Technique, which you can read about here:

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/The-Saturation-Technique-Best-GW-adjustment-o...

 

It's in their best interest to grant someone an isolated GW adjustment.  You could refinance and move to a different lender if for any reason you aren't happy with BoA (even if it's ultimately "your fault" that you're angry with their service) and if you refinance you take away tens of thousands of dollars of profit from them.

 

How far into your mortgage are you?

 

Highlighted
New Contributor
Posts: 55
Registered: ‎09-15-2016
0

Re: One 30 late mortage - How long to recover?

There is probably another issue here besides the mortgage FICO.

 

Many mortgage programs require no mortgage delinquencies in the past 12 months as a condition of approval. Sometimes, written verification of payment history from the old mortgage company will be required; other times, the credit report might be enough.

 

There may be ways to proceed nonetheless... a reputable mortgage broker might have access to lenders with more flexible rules than the big banks', and FHA or similar programs might be more forgiving. I don't know. I would suggest asking for advice on the Mortgages forum here.

Valued Member
Posts: 33
Registered: ‎05-20-2012
0

Re: One 30 late mortage - How long to recover?

Sorry for the late reply.  I was so upset I get to get away and clear my head.  I've had a mortgage with them for about 10 years.



Capital One Quicksilver | Capitol One Platinum | OverStock | Gamestop
Current 9/28/16 Experian 659 Equifax 646Transunion 633
Starting over...06/13/2015
Experian 537 Equifax 544 TransUnion 525
Valued Member
Posts: 33
Registered: ‎05-20-2012
0

Re: One 30 late mortage - How long to recover?

I have been rebuilding for awhile now.  The only negative was the 30 day late which dropped my score 30-50 points overnight.  I am hoping time will help if I am not able to get a goodwill adjustment.  I had a year of work go down the drain with one mistake.

Capital One Quicksilver | Capitol One Platinum | OverStock | Gamestop
Current 9/28/16 Experian 659 Equifax 646Transunion 633
Starting over...06/13/2015
Experian 537 Equifax 544 TransUnion 525
Valued Contributor
Posts: 4,263
Registered: ‎04-11-2016

Re: One 30 late mortage - How long to recover?


mithrildreams wrote:

I have been rebuilding for awhile now.  The only negative was the 30 day late which dropped my score 30-50 points overnight.  I am hoping time will help if I am not able to get a goodwill adjustment.  I had a year of work go down the drain with one mistake.


There's no "if" you're not able to get the GW adjustment.  You need to change your mindset here.  It's like hitting the gym and going for your max rep, 90% of it is mental, so commit to yourself that you're going to get this late payment removed.  It's not IF, it's WHEN.  Utilize the Saturation Technique and your odds of getting it removed will increase considerably.  I was able to get 7 months of late history removed from my mortgage.  It took 3 different Rounds of GW letters to get them all off, but my mortgage is now clean so it was well worth it.  Who is your mortgage company?  Have you searched specifically for them?  You may find some threads buried in the rebuilding forum with people achieving favorable GW adjustment results with that specific lender.  I'd PM those people that have had results and ask them for any advice, contact info, etc.  A 30 day late is minor and if you've had 10 years of favorable history with them outside of that lone late payment I'd actually think your chances of getting it removed are extremely high and that it would be quite an easy feat.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.