How to get my second mortgage removed? Paid in Full...

[mrchamp103]

Hi guys i really need your help, i have looked everywhere and can't seem to find an answer to my question. I had a second mortgage with GMAC which as of today shows as a 0 balance and a status of "charge off - closed by grantor". Today i received a letter by Specialized Loan Servicing (seems GMAC sold it to this company) with a Paid in Full letter with all my original paperwork including the Note, Interest Rates, etc.. with my original signatures (again all original papwerwork). My questions are:

1. Can i send this Paid in Full letter to GMAC and have this account taken off my credit report since it is now paid in full?
2. Can i send this Paid in Full letter to all 3 credit agencies and have this account taken off my credit report since it is now paid in full?
3. The last reported date as of now is 1/11 and a FHA loan requires 3 years after the last reported date in a foreclosure to apply for a loan. If they update the status and update the last reported date will this effect my FHA date and restart the clock 3 new years?
4. Can an underwriter accept this letter and void the 3 years the FHA requires and approve a loan?

I am hoping that by my account being paid in full that it can be taken off and have my life restarted again and purchase a home. Thank you all in advanced.

[mrchamp103]

Hi guys i really need your help, i have looked everywhere and can't seem to find an answer to my question. I had a second mortgage with GMAC which as of today shows as a 0 balance and a status of "charge off - closed by grantor". Today i received a letter by Specialized Loan Servicing (seems GMAC sold it to this company) with a Paid in Full letter with all my original paperwork including the Note, Interest Rates, etc.. with my original signatures (again all original papwerwork). My questions are:

1. Can i send this Paid in Full letter to GMAC and have this account taken off my credit report since it is now paid in full?
2. Can i send this Paid in Full letter to all 3 credit agencies and have this account taken off my credit report since it is now paid in full?
3. The last reported date as of now is 1/11 and a FHA loan requires 3 years after the last reported date in a foreclosure to apply for a loan. If they update the status and update the last reported date will this effect my FHA date and restart the clock 3 new years?
4. Can an underwriter accept this letter and void the 3 years the FHA requires and approve a loan?

I am hoping that by my account being paid in full that it can be taken off and have my life restarted again and purchase a home. Thank you all in advanced.

[0x47]

PIF means that you paid it in full.  It doesn't mean that it will come off your credit report.  It can stay on there for up to 7 years.  You can try writing a goodwill letter asking them to remove it from your records; you might get lucky.

[guiness56]

The first 2 questions were answered in Rebuilding.

I told OP to ask the last 2 questions on this forum.

[cclee]

Question 3 - It's 3yrs from the date that title transferred back to the bank, not from the date last reported on credit report.  Question 4 - I'm assuming a foreclosure occured on your 1st mortgage?  Or was it just the 2nd being charged off?  Kind of confused on that part, if there was a foreclosure than no, the underwriter would not accept that it was paid in full and waive the 3yrs.

[mrchamp103]

Correct the first mortgage was foreclosed as well but the weirdest thing is that the last reported dates are completely different then each other. The primary mortgage shows 5/2009 and the second mortgage shows 1/11. The three years technically has passed, it's the small second mortgage that is holding me up to buy a new house. What I am hoping is that this letter will kind of forego the second mortgage and the underwriter may just look at the primary. Any ideas on this scenario?

[cclee]

Was it an underwriter who told you to wait 3yrs from the 2nd's date?  It should be from when the 1st foreclosed and transferred title to the bank, the 2nd was attached to that house.  My 2nd posted a charge off date that was a few months later than when the 1st foreclosed, but my 2nd was never taken into consideration when looking into the foreclosure time line.  Have you talked to a few loan officers to get their opinion?

[cclee]

Sorry, forgot to answer your other question.  The letter saying it was paid in full will not erase the fact that a charge off occured, unless the charge off was a mistake, then you can not get rid of it until the 7yr mark.

[mrchamp103]

I have gone to two locations in which both stated the underwriter denied the loan due to I have to wait until the second mortgage hit the 3 years. I asked why if that was a small bucket from the original loan and they stated that it didn't matter due to it was still foreclosed and they have to go by that date. It just doesn't make sense to me why they wouldn't approve me if the primary should be the important one.

[StartingOver10]

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@cclee wrote:

Was it an underwriter who told you to wait 3yrs from the 2nd's date?  It should be from when the 1st foreclosed and transferred title to the bank, the 2nd was attached to that house.  My 2nd posted a charge off date that was a few months later than when the 1st foreclosed, but my 2nd was never taken into consideration when looking into the foreclosure time line.  Have you talked to a few loan officers to get their opinion?

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I think cclee is right. The 2nd mortgage is f/c'ed out when the first mortgage f/c's on the loan. The fact that you paid the second off after your f/c should NOT affect the timeline.

You may have to either go with a mortgage banker that writes and funds their own loans or call various banks until you find one that gets it.

Were the two banks you contacted local banks or were they "big box" banks? If they are big box banks they may not have anyone at the branch that can actually answer your question as they have centralized underwriting for the most part and keep the LO's uninformed (sorry, but that's how is is now).

PM me for a referral to someone that is knowledgeable and may be able to help you

[mrchamp103]

Ok guys so this is where i stand. The last time an underwriter saw my credit and it reported as i started in my first post was two months ago. Today i went to another company and they pulled my credit and now my "last reported date" changed to this month both on the primary and secondary mortgage. It does show below that "charge off - pd 2008" on both mortgages. My question now is, does the underwriter go by the charge off date to where the 3 years of an FHA qualification start, or how do they determine when the time starts? I hope them changing the reported date does not affect me in any way and hopefully they go by the charge off date, this way i can qualify for a loan today!! The underwriter is going to review it tomorrow and respond with an answer and I will keep you guys up to date, in the meanwhile, please assist with my question above. Thanks.

On a side note, I am now reading that if i want to do the loan by myself under my own credit, but i am married, due they count my wife's debt toward the DTI Ratio? I am not in her accounts and they where established before she met me.