Two days ago I asked the board a question about collections being factored into my debt income ratio, and I appreciate the answers!! And of course you all was right!!
Ok, today, the loan officer emailed me, and asked about the collections on my account. I told him, the last LO that pre approved me through Desktop Underwriting said that it clearly said it didn't need to be paid off, and he tells me "as far as I know, any collections over $1,000 needs to be paid off in order to buy a home" This is the deal, I had a lease car through Infiniti, when I returned it I had went way over the mileage, about $7000 worth, they sent me the bill 3 weeks later, on the 4th week it reported 30 days late!! My scores dropped over 80-105 points across the board!! They wanted to setup a payment plan of $1050 per month to have it paid off by 6 months, I told them I couldn't afford that. Long story short, since then for two years they have been calling me trying to do a settlement offer. Loan Officers along the way told me things from "it will need to be paid off, you can pay the settlement as long as it has zero balance owed is all that will count, then some said it's over a year old it wouldn't matter"
Now he tells me he will talk to the underwriter tomorrow to be sure.
My question is, my Original LO said that DU clearly said it didn't need to be paid in order to get the loan, now this new guy who took over is all over the place with my paperwork and telling me it needs to be paid, why would DU say it didn't need to be paid if it really needed to be paid? Or is he flat out wrong about the whole thing?
Starting Score: TU527 EQ517 April 2012
I don't know. I have a $1100 collection that is unpaid on my credit report. My LO said it did not have to be paid. I have gone through underwriting and satisfied all the conditions and I am just waiting for final approval. All I had to do is write a letter of explanation for it and I am due to close next week. So his generalized statement that any collection over $1000 has to be paid to get a home loan, is false.
I hope they can work this out quickly for you. Hopefully, worst case they can just make it due at closing and roll it into the loan.
I hope they can work this out quickly for you. Hopefully, worst case they can just make it due at closing and roll it into the loan.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Exactly, My LO before him said the most the underwriter will want from me is a letter of explanation of the debt.
This guy just sent me another email sounding pissed that the original LO allowed me to see the DU findings, said it wasn't for me to be viewing.
You are probably right, but all I am disclosing with him is the information that his boss disclosed with me before he went out on medical leave, this guy has 10 years as a LO the original has over 37 years, and told me that he himself spoke to the underwriter over a week ago about this same thing and now this guy is mad at me because I told him what the Seior LO discussed with me before going out on leave and is still telling me by email, so if he's mad at me for giving him the facts that is his problem and should take it up with his superior.
Will keep you all posted, thanks again you all!!!
Sure, no problem. I am sure it will work out in the end. :-)