Help, I'm scared of losing my mortgage

[StartingOver10]

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@Anonymous wrote:

After a month of dealing with this, the only thing to get my scores back up was to get both collections off.  I paid both collections, one removed, one did not, and they refuse to do so despite my BBB compaints, FTC complaints, Enhanced recovery has been hard to deal with.  Wrote them an intent to sue letter, didn't work either.  Long story short, I am losing the house. 

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I am so sorry to hear this.  Is there only one unpaid (or paid) collection and it is less than $2k?  If so, try another lender. It's possible it is a lender overlay.  Who is your lender that requires this CA off your CR?

[Anonymous]

No, both are paid. The 2nd one sprint with enhanced recovery I actually paid sprint the original creditor. Sprint keeps telling me that they are only required to report it fairly and it is now showing on my credit report as a paid collection. It needed to be completely removed because I need 36 fico points. Contract expires in 2 days. Trust me, I have already spent a month fighting enhanced recovery to take it off, and they won't.

[StartingOver10]

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@Anonymous wrote:
No, both are paid. The 2nd one sprint with enhanced recovery I actually paid sprint the original creditor. Sprint keeps telling me that they are only required to report it fairly and it is now showing on my credit report as a paid collection. It needed to be completely removed because I need 36 fico points. Contract expires in 2 days. Trust me, I have already spent a month fighting enhanced recovery to take it off, and they won't.

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What is your mortgage score now?  It is very possible another lender can do the loan with the paid collection on it. Tell me if it is an FHA purchase too. The case # can transfer to another lender.

I am thinking that having Enhanced Recovery collection entirely removed is a lender overlay rather than a FHA or Fannie requirement. That is why I am asking

[Anonymous]

What is your mortgage score now? It is very possible another lender can do the loan with the paid collection on it. Tell me if it is an FHA purchase too. The case # can transfer to another lender.

I am thinking that having Enhanced Recovery collection entirely removed is a lender overlay rather than a FHA or Fannie requirement. That is why I am asking
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No, it is a KHC loan (Kentucky housing Corporation) you have to be at 640. I was going that route for the down payment assistance. I was initially preapproved for a mortgage with my mid score directly at 640, when the disputes came off my score took a beating. They then ran it through something called a what if simulator. The simulator said that if I can get both collections off my score would go back over 640. My score is now 604, I doubt very seriously I'm going to gain 36 points in two days.

[StartingOver10]

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@Anonymous wrote:
What is your mortgage score now? It is very possible another lender can do the loan with the paid collection on it. Tell me if it is an FHA purchase too. The case # can transfer to another lender.

I am thinking that having Enhanced Recovery collection entirely removed is a lender overlay rather than a FHA or Fannie requirement. That is why I am asking
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No, it is a KHC loan (Kentucky housing Corporation) you have to be at 640. I was going that route for the down payment assistance. I was initially preapproved for a mortgage with my mid score directly at 640, when the disputes came off my score took a beating. They then ran it through something called a what if simulator. The simulator said that if I can get both collections off my score would go back over 640. My score is now 604, I doubt very seriously I'm going to gain 36 points in two days.

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Ok, I see now. Yes, those housing assistance programs have their own criteria (overlays).  There is no getting around them and still receiving the assistance.

Your other option is to go USDA or FHA.  FHA does go to 604 mid score, but you have to have a down payment. It can be a gift and follow the protocal for gift funds (not hard).  You can have the seller contribute toward your cc & pp's too, up to 6% of purchase price.  You usually don't need as much as 6%, depends upon where you are in the country and the pp of your home as to how much you will need for cc & pre-paid expenses but in very general terms 3% to 4% is adaquate to cover your closing costs.

Do you have any down payment money available to you?