Mortgage Denied..

[happy0510]

Sorry to hear about that!!

Can any of the mortgage pros step in on this one?

This is new to me....never heard this on the boards in 3+ years!!

[Anonymous]

Either the OP is not giving us the whole story or there is some kind of miscommunication.   Account closed by credit grantor happens all the time and should not affect your mortgage.  

[Anonymous]

I gave the whole story.. It was denied because it was listed on the credit report as closed by grantor April 2010.  My LO explained to me that it was a huge red flag for underwriting.  I have submitted a letter explaining that it was closed in September of 2009.  I am hoping that will help.

[Anonymous]

AlthoughI wish the best for you in it, in reality it still falls in the past 12 months which is why it is a red flag.  If the compnay closed your account in the last year due to payment issues, it is still going to be a red flag.  Either way, best wishes for getting it resolved.

[Anonymous]

This doesn't make sense to me. What if the account was closed due to inactivity? Go find another lender.

[Anonymous]

Tha account was closed due to lack of payment.  The underwriter can probably see that the accunt was behind, closed, and then put under payment plan.  In all likelihood, the exact reason for denial was not for account being closed, but for the fact that less than a year ago OP was seriosuly delinquent enough for a company to close the account.  Usually you have to be a t least 2 months past due for them to close an account (although they may CLD for even a day late or really any reason they choose)

[happy0510]

Awwe. Now this makes sense! I re-read the OP.

Inactivity and perfect history with any given CC being closed by grantor is not going to result in denial.

Thank goodness!

[Anonymous]

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@Anonymous wrote:

Tha account was closed due to lack of payment.  The underwriter can probably see that the accunt was behind, closed, and then put under payment plan.  In all likelihood, the exact reason for denial was not for account being closed, but for the fact that less than a year ago OP was seriosuly delinquent enough for a company to close the account.  Usually you have to be a t least 2 months past due for them to close an account (although they may CLD for even a day late or really any reason they choose)

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Yes you are right, they can close for any reason they feel is necessary.  I had a CCC close my account because I went over the credit limit "CL"  two months in a row, even though I made payments to bring the CL down before the month's closing date and never missed a payment.  I would purchase gas, usually $30 - $40 worth even though I knew I only had $15 or so avail credit.  Just trying to get by having enough gas to make it to payday.....

wow, just reading it makes me sound desperate but thats where i was over a year ago.  I'm still paying on this closed account got it down to $150 now....yippppeeeee