topic Re: I think we screwed up royally in Mortgage Loans

I think we screwed up royally

Anonymous — Sat, 05 Sep 2020 00:17:35 GMT

So we've been working on getting our credit scores up, got the mid up to 641, our income looked good along with everything else we sent in, we were in pre-underwriting for a USDA loan and were told 2 days ago we were denied. The underwriters kicked us to the curb.

We filed bankruptcy in Sept 2016, discharge in Jan/Feb the following year. All was well until around December 2018- March 2019 when we were late on our Cap one pymts. That has bitten us in the bottom and I feel like it's going to haunt us forever. That was the biggest reason for our denial. Lates after bankruptcy are a huge no-no and most lenders will deny deny deny, which I was unaware of. They aren't too keen on only 2 lines of credit either but that isn't what put the nail in the coffin.

I'm unsure what to do now. We were told just keep paying bills on time, we've been doing that for about 16 months now, so I guess what I'm asking is how much time do we need under our belts to have a shot at approval? 24 months? The broker was not clear on the timeframe at all. He did push for an FHA, said he could get us that, but I'm not sure I want that, I'm not even sure he can do it. We don't have down pymt money which is a big reason for going for the USDA loan. It's frustrating, we were told we'd get approved to begin with, we were assured constantly and then they come back with this. How did they not realize we had lates 3 months ago?!? We've been in this process since June, waiting and waiting, we dumped a grand into paying the 2 cards down to where they wanted them and now we won't be moving. It stinks.

Re: I think we screwed up royally

AllZero — Sat, 05 Sep 2020 01:15:06 GMT

That is unfortunate.

Have you considered sending out Good Will letters?

The Saturation Technique: Best GW adjustment odds.

Re: I think we screwed up royally

Anonymous — Sat, 05 Sep 2020 02:54:20 GMT

Can you tell me what they said about the two lines of credit? That's what I have and I was hoping to get USDA.

Re: I think we screwed up royally

Anonymous — Sat, 05 Sep 2020 03:23:09 GMT

The broker said the 2 lines of credit are acceptable if everything else was where it should be, that they can work around that but add to that lates which were the biggest problem and I was done for.

Re: I think we screwed up royally

Anonymous — Sat, 05 Sep 2020 03:25:31 GMT

@AllZero wrote:
That is unfortunate.

Have you considered sending out Good Will letters?

The Saturation Technique: Best GW adjustment odds.

We have not tried that. We discussed calling Cap One but haven't gotten that far yet. We're still feeling defeated and trying to get our minds in a better place to deal with it. First thing a lot of people want to do is give up and that's exactly how we felt but we can't, we'll find a way to get around it, over it, through it.

Re: I think we screwed up royally

AllZero — Sat, 05 Sep 2020 03:29:08 GMT

@Anonymous. Email or send a USPS letter to the CEO. If you check the Rebuild sub-forum, there has been some success. It may not work out on the first attempt. Thus, the saturation technique.

Re: I think we screwed up royally

Cjethompson2017 — Sat, 05 Sep 2020 03:56:51 GMT

@Anonymous When were you supposed to close? It's kind of silly they didn't realize you had the lates BEFORE you went to underwriting.

Re: I think we screwed up royally

Anonymous — Sat, 05 Sep 2020 04:16:29 GMT

@Cjethompson2017 wrote:
@Anonymous When were you supposed to close? It's kind of silly they didn't realize you had the lates BEFORE you went to underwriting.

This particular company does pre-underwriting, it's different than a pre-approval. The pre-underwriting is done prior to house hunting, and the broker gave an estimated date for closing once all of that was done but we never never even got to shop for a home lol.

As I understand it pre-underwriting and the approval is a guarantee of a loan. It's not like when people get pre-approval, find a home, then it all falls apart at the end because of some issue. With what they were doing for us if we got approved it was supposed to be a done deal, the loan is guaranteed and it's as good as if you were a cash customer going to buy a home.

I'm as confused as anyone else. With the pre-underwriting we sent in literally 60+ documents, tax returns, w2's, bank statements, verification of student loans and the amount we pay, they verified his employment, length of time there, they checked our credit of course, and all the usual stuff, but they dug deeper. From the way my broker spoke he was a little shocked that we were denied, he had been consulting with his boss throughout the process and they really felt we were good to go, so much so that they assured us we'd get it. I believe he clearly knew about the lates but didn't realize there was an overlay and that we'd be denied.

Re: I think we screwed up royally

Anonymous — Sat, 05 Sep 2020 04:20:21 GMT

@AllZero wrote:
@Anonymous. Email or send a USPS letter to the CEO. If you check the Rebuild sub-forum, there has been some success. It may not work out on the first attempt. Thus, the saturation technique.

We're going to give it a try.

I don't want those lates following me around much longer. If it turns out we can't get them removed then I guess time is key here, we'll have to get some more of it under our belts before I'd feel good about attempting to get a USDA loan again. I don't know which lenders have which overlays and from what I've heard most are pretty strict about the lates after bankruptcy. Seems like waiting is the best option if the GW letters don't work out.

Re: I think we screwed up royally

AllZero — Sat, 05 Sep 2020 04:22:34 GMT

Good luck!

https://www.ceoemail.com/s.php?id=ceo-9864

Re: I think we screwed up royally

Anonymous — Fri, 11 Sep 2020 22:48:52 GMT

Email to Cap One CEO can work. I had 30, 60, 90 and 120 day lates on 2 cards from 5 years ago. Using the info from the other thread, I sent email to the CEO 4 weeks ago. Received letter in usps mail this week they were removing the lates. Checked CK and they are gone.

Hang in there, there is hope and you CAN do it.