topic Re: Closing Process in Mortgage Loans

Just Started and Already Issues

Anonymous — Wed, 24 Oct 2012 03:38:53 GMT

As of Friday, both my husband and mine credit was pulled for pre-approval. We have pretty good credit scores my mid score was 752 and his was 667. However, there is a collection account that is on his credit with dispute comments. We have no idea where these comments came from as we never disputed the item. Instead of the LO telling me on Friday that this would be an issue, she just sent me our credit reports and never said anything.

As of today, she told me that we needed to have it "taken care of". I had no idea what "taken care of" means. Does this mean that we should pay it or should we try to get the comments deleted. Her response was you can do one of the other.

I am so confused and she is offering no help, she didn't even know that we already signed a contract with the Castle Rock Homes. I already feel like she is not going to be helpful in the process at all, but we were sent to this lender by the Castle Rock and if we are financed with them, the Castle Rock will pay our closing costs.

Can someone tell me what we should do? How do we begin to even get the dispute comments deleted?

Re: Just Started and Already Issues

tooleman694 — Wed, 24 Oct 2012 04:30:58 GMT

You need to know which report the comments are listed, then call up the credit report people and ask them to remove it.

Takes about 30 days.

Re: Just Started and Already Issues

webhopper — Wed, 24 Oct 2012 04:54:12 GMT

If the collection account isn't paid; I would send them a PFD letter. Maybe you can get it paid and deleted. Is it a large amount?

Re: Just Started and Already Issues

Anonymous — Thu, 25 Oct 2012 00:31:04 GMT

It's $952.

Re: Just Started and Already Issues

DCole3g — Thu, 25 Oct 2012 01:25:53 GMT

I would negotiate payoff with CA and try PFD. It never hurts to try!!!

Re: Just Started and Already Issues

webhopper — Thu, 25 Oct 2012 02:08:20 GMT

Pay for delete is what I would do first.

Re: Just Started and Already Issues

DemoBox — Thu, 25 Oct 2012 03:46:26 GMT

I would start off by finding a different LO. They can't exactly tell you what to do, but they can at least give you some options and try to guide you. The bank you are going through probably wants that paid off, but with your credit scores, you can definitely find a bank that will give you a loan and not need you to pay that off. I would shop around some more if you have the time. Best of luck

Re: Just Started and Already Issues

beb86 — Thu, 25 Oct 2012 04:32:13 GMT

Try a PFD and if that doesnt work ask the LO if underwriting requires it to be paid off or last option you could go off your income and credit only if your income is good enough to support the DTI

Re: Just Started and Already Issues

Anonymous — Fri, 26 Oct 2012 02:00:58 GMT

Ok.So today we contacted the agency and I paid a settlement for half of the balance. The CA told me that they would fax me a letter on tomorrow saying that the account had been paid and that they report to the credit bureaus the first of every month. She also told me that I can take the letter and send it to the credit bureaus to try to get a speedy deletion.

I hope I did the right think and I'm keeping my finger's crossed.

Re: Just Started and Already Issues

Anonymous — Fri, 26 Oct 2012 02:02:13 GMT

I would love to go with a different lender, but in order for the home builder to pay our closing costs we have to go with the lender that they choose...Ughhh!!! So far I am not impressed with the LO, but I'm going to reach out to her on tomorrow.

Re: Just Started and Already Issues

GregB — Fri, 26 Oct 2012 15:57:07 GMT

In general, If the lender was anything better than terrible, they wouldn't be willing to work for the pittance that the builder is willing to pay.

The builder normally is willing to pay their costs because they work cheap. You are getting what you are paying for. You have the choice to get better but it will cost a bunch more. If it helps you feel better, even the next step up in lender quality will be pretty poor. Very hard to find a really good lender.

Re: Just Started and Already Issues

Anonymous — Sat, 27 Oct 2012 02:30:13 GMT

I hate to be the bearer of bad news, but unless the letter specifically states that they have agreed to deleting the account then it won't come off of your reports. The collection agency is the one that has to contact the CRA to delete the account. Merely by you faxing the CRA the letter won't have the debt removed, just updated to reflect a zero balance. AND, the collection agency can even indicate on your report that it was "SETTLED FOR A LESSER AMOUNT". It seems to me, although I could be incorrect, that the only thing this did was settle the account, not remove it. If that was your intention all along then I suppose you succeeded, but if you were trying to get a PFD, it doesn't seem like you got it. Again, I could be wrong.

Re: Just Started and Already Issues

Anonymous — Sat, 27 Oct 2012 05:03:37 GMT

I spoke with my LO and she told me that setting was the perfect thing to do. We didn't have to have it deleted but it did need to be paid. We received a our letter and I sent it to the LO and she will work with the credit agencies to have the info updated. So everything seems to be ok.

Re: Just Started and Already Issues

beb86 — Sun, 28 Oct 2012 01:11:58 GMT

@Anonymous wrote:
I spoke with my LO and she told me that setting was the perfect thing to do. We didn't have to have it deleted but it did need to be paid. We received a our letter and I sent it to the LO and she will work with the credit agencies to have the info updated. So everything seems to be ok.

If the have already prescreened you (pre-qual.pre-approval) the just want to see a 0 in the past due or outstading. Settling isn't the best option when going to a new lender but there more concerned that you dont have any outstanding balances. Mine didnt even bat and eye or mention my one settled account and when I did ask the lender about it he told me the above statement.

Hope this helps but always remember YMMV so you never know

Re: Just Started and Already Issues

Anonymous — Tue, 06 Nov 2012 02:18:39 GMT

We have signed our loan application and the requested paperwork has been submitted. My husband and I are on pins and needles waiting to hear if they will require additional paperwork.

Closing Process

Anonymous — Thu, 15 Nov 2012 03:05:12 GMT

My LP told me that my loan would go for underwriting on Tuesday morning and she would call us if additional paperwork was required, So far I haven't heard anything from her. We are doing a new construction and they have our closing date as 12/14. We are keeping our fingers crossed!!!

Re: Closing Process

Anonymous — Thu, 15 Nov 2012 03:14:57 GMT

I'm a Loan Officer and all lenders now a days follow guidelines set by Fannie Mae...Mostly the collection account itself is ok. It's the dispute comment that Fannie Mae doesn't like. Either the creditor or you can have that comment placed. What some collection agencies are doing is placing the dispute comments on your file and refusing to remove them until paid. Not sure if that is legal but its what they are doing to force some to pay. You can actually get these comments removed by contacting the CRA's directly but sometimes and often they will not help. Go straight to the original creditor and they often can request it be removed.

Re: Closing Process

Anonymous — Thu, 15 Nov 2012 13:46:43 GMT

I have written a letter to the CRA stating that I do not dispute the said account and wish to have the dispute comments removed. I was told that if you were going to apply for a mortgage you cannot have any dispute comments on your report. If you need a sample letter and an example of what I sent to the CRA just PM me and I will send it your way.