NACA

[Anonymous]

I feel like I'm going to cry. I went through a nasty divorce last year that left me completely broke and without a home. After an 18 month battle my ex finally had to sell our house. My half of the profit was $27k which I used to immediatley pay my Care credit in full that was over due, I paid a discover card in full and a personal loan from my sister. The only thing that shows up on my credit report is that I have a student loan that has a balance of $4k on it and that of 96 payments- 94 of them have been on time but 2 of the payments were late. That account is now current  BUT as of my last naca meeting I was told that the reported late payment will disqualify me from a loan. When I paid everything off my score went down from 600 to 511. I asked for a goodwill adjustment and the loan servicer won't do it. My daughter keeps asking me when we will have a permanent place again and it's breaking my heart. Of the 27k I still have 20K left and meet all the other requirements (12 month rent history, letters from electric and cell phone that I've never paid late, etc).

[NC_Mtg_Loaner]

Do you still have two credit cards (revolving accounts) open?  If so, just keep the balance/utilization ratio around 10% and keep the derogatories behind you.   

You'll be ok in a reasonable amount of time.

[Anonymous]

I have the 2 cards still open I just don't use them. The problem with the waiting game is I'm not allowed to move out of county( per a family court) and the prices of homes in this area are soon going to be astronomical so the longer I wait the less likely I am going to be able to afford it.

[VALoanMaster]

---

@Anonymous wrote:

I feel like I'm going to cry. I went through a nasty divorce last year that left me completely broke and without a home. After an 18 month battle my ex finally had to sell our house. My half of the profit was $27k which I used to immediatley pay my Care credit in full that was over due, I paid a discover card in full and a personal loan from my sister. The only thing that shows up on my credit report is that I have a student loan that has a balance of $4k on it and that of 96 payments- 94 of them have been on time but 2 of the payments were late. That account is now current  BUT as of my last naca meeting I was told that the reported late payment will disqualify me from a loan. When I paid everything off my score went down from 600 to 511. I asked for a goodwill adjustment and the loan servicer won't do it. My daughter keeps asking me when we will have a permanent place again and it's breaking my heart. Of the 27k I still have 20K left and meet all the other requirements (12 month rent history, letters from electric and cell phone that I've never paid late, etc).

---

When were the late payments on the student loan?

Is NACA your only choice?

You need a lender (like me) who will review your credit report to see if there is anything else that can be done through a rapid re-score to bring your scores up so yo can go FHA.

[Anonymous]

Hello hatingbeingdebtfree,

I suspect that you have misunderstood something along the way. Even if the lates were to prevent you from qualifying immediately, it does not disqualify you from the program, only delays your eligibility to qualify until you have re-established a 12-month on-time history.

Additionally, if you can show that the lates were specifically a result of the divorce and were beyond your control, you may be able to get a second level review to have the lates overlooked and proceed without a delay toward NACA Qualification.

Make sure to write a Letter of Explanation regarding the circumstances of the late payment and include any supporting evidence, and submit it to your NACA file.  Contact your counselor and request that your file be reviewed again. Multiple late payments are more difficult to have waived than one, but it's definitely worth a try to avoid a setback of even a few months.

Tim Trumble

Online Operations, NACA