CLEAR TO CLOSE THEN 30 DAY LATE

[Anonymous]

This morning we just got the phone call that we are clear to close on our mortgage refinance/cash out and they want to schedule the signing for tomorrow.  This has not been an easy loan and there were a good amount on conditions that were cleared before we got to this point. Last two months I was in the hospital and left my husband in charge of bills and this morning I was checking our bank and realized one of our store cc payments did not clear for two months.  I quickly called them and they said we are 33 days past due and they reported us to the bureus on the 11th.  Its not reflecting on our credit reports yet but I am sure it will be any second now.  My question is...what do I do?  Should I call my lender and tell her the situation so she can pull the final report today or do I follow the rule of "dont ask dont tell"?  I am not even sure they are going to pull a final report but I am pretty sure this would stop the loan dead in its tracks.  Ughhhh I am so frustrated.

[C_chelle]

Sort of having the same situation. I have a LendingClub loan that just reported. I have conditions to pay off cc and a PenFed loan. I plan on paying off the LC anyway but was hoping to close before it reported.  I'm supposed to be closing in the 20th of December. My loan officer says that the lender hasn't asked for an updated report so she isn't going to send one unless they do. I figure they will pull again closer to closing. 
Hope it all works out for you. At least your closing is tomorrow. You should be good to go! 

[Anonymous]

So you went ahead and mentioned it to your loan officer?  I'm thinking it's probably best if I just dont say anything and hope for the best.  Best of luck to you on your loan as well!

[mike-fico]

I would say it comes down to timing.  

Have you already signed all the loan documents where you attest to the validity of everything in the document to your best ability?

If so, then there is nothing to tell them.  You found out about it after the fact, it doesn't materially affect your financial situation, it just changes your credit score for a little while.  That isn't material to the current situation for the mortgage.

If you haven't signed all the loan documents, and you still have to do that, then what you know changes things.  If this late will result in an extra financial burden for you, you have to tell them, it would be fraud to not tell them.  But if this doesn't impact you financially (credit card company isn't going to call it fully due) and just impacts your credit rating, then you aren't required to mention anything.  You have to judge if it impacts your financials though.  Because when you sign that loan document you are attesting to its accuracy.

[CreditFun]

Be prepared to do some explaining.

Lenders do soft pulls before closing.

[VALoanMaster]

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@Anonymous wrote:

This morning we just got the phone call that we are clear to close on our mortgage refinance/cash out and they want to schedule the signing for tomorrow.  This has not been an easy loan and there were a good amount on conditions that were cleared before we got to this point. Last two months I was in the hospital and left my husband in charge of bills and this morning I was checking our bank and realized one of our store cc payments did not clear for two months.  I quickly called them and they said we are 33 days past due and they reported us to the bureaus on the 11th.  Its not reflecting on our credit reports yet but I am sure it will be any second now.  My question is...what do I do?  Should I call my lender and tell her the situation so she can pull the final report today or do I follow the rule of "dont ask dont tell"?  I am not even sure they are going to pull a final report but I am pretty sure this would stop the loan dead in its tracks.  Ughhhh I am so frustrated.

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As a lender, we issue our Clear To Close after we clear all conditions which includes the final verbal verification of employment and the soft credit pull to make sure there are no new debts.

I would call your LO and ask if the soft pull was done.