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Again, ugh... I'm going to try to explain this as clearly as I can..
So in the beginning of January, I subscribed to Score Watch and pulled my TransUnion and Equifax report. TransUnion: 614, Equifax: 621. Just for the heck of it, I decided to look into buying a home. I got in touch with a mortgage lender and a real estate friend. I met with the lender and we discussed my financial situation. I had 11 credit cards all maxed out. My last late payments was in 2006. I also have student loans and a car loan. So obviously I thought I would not qualify for a loan. Surprisingly, my Beacon score (combo of all three) came back at 624. I qualified. The hard part was finding a mortgage that I could deal with. Well, I found a foreclosured house for $64,900 and it was perfect. Nothing wrong with it at all. Best of all, it fit my mortgage pmts!! Plus, I qualified for a 0% interest, 5 year deferred loan from North Carolina to use towards my downpayment and closing costs because I was buying a foreclosure (think of it as a free $14,900 as long as I live in the house for 5 years). So really, I needed a home loan for only $50,000. Great!! I put an offer in on the house hoping the bank would come back to me fairly soon.. Usually it takes awhile for bank owned foreclosures to accept the offer. Four hours later it was accepted. Closing date set to March 11th.
Here comes the problem. I had to switch lenders. There's only a few lenders in NC that deal with the $14,900 special loan. So my lender recommended a friend of his that could take care of me. Great!! Just two days ago, I got an alert from Score Watch. My Equifax score dropped to 601 from one late payment I accidently made back in December 2009. CRAP! I am scared and believe that my Beacon score has also dropped. Quite probable that it dropped to under 620 (which is the minimum score needed). I got in touch with my new lender and asked him if he has pulled my credit report yet. I told him that last time I checked my Beacon score was with my last lender and it was 624. He asked me to fax him over the credit report my last lender gave me so he could look at it. I also informed him that I plan on paying off the majority of my cards (which HOPEFULLY will raise my score)... So yesterday I faxed him over my credit report and proof of what credit cards I'm paying off. A week from today, all 11 of my maxed out credit cards will be completely paid off. Whether that will show up on my credit report on time or not, who knows.
So what do I do?? What if my score has dropped but it goes back up over 620 by the end of February? Can I "reapply" for a mortgage then? I'm not sure if I have until March 11th to get everything finalized or what. A part of me thinks that I have no time left and I'm (pardon my language) screwed. Another part of me seems to think that I have some time to get everything straightened out. Now, remember, my new lender has NOT pulled my new credit report yet... Sigh.. Someone please help or give me advice. I'm a first-time homebuyer and everything is moving way too fast and way too foreign to me. Thanks guys!!!
Take a deep breath..... Most cc's report to the 3 bureaus on the statement CUT date. Whatever $$ you have to pay on the cards, pay those where the pmt will post BEFORE cut date first.
When those payments post & scorwatch does a "drive-by" of your records, you'll get another alert. Paying down those accts will help your score tremendously!
Next, the late from Dec. This recent late has hurt your score & could hurt your chances for the loan if they pull another report. Call them & speak with their csr...and likely, ask to speak with their supervisor. You want to explain the situation & see if they can recon that late post. If you get no where with them, try a GW letter to an exec. If you have a long standing relationship with this bank & have no other lates, they might be likely to do a one-time adjustment for you.
Good luck!!!!
Well, as of a week ago, I was finally able to take a lump sum loan out of my 401k and pay off my CC cards and take out enough money for a downpayment/closing costs. I had to wait until I had enough $$ in my 401k to do that. Yay for profit sharing.
Also - I contacted AE Friday and today. No luck removing the late payment over the phone because it was indeed my fault. The customer service ppl gave me the excuse that they get audited and they can't just remove a late payment without proper justification that it was something on their part. Sigh.. so I just now have to wait to see if my Goodwill Letter works.
@dcw0405 wrote:Well, as of a week ago, I was finally able to take a lump sum loan out of my 401k and pay off my CC cards and take out enough money for a downpayment/closing costs. I had to wait until I had enough $$ in my 401k to do that. Yay for profit sharing.
Also - I contacted AE Friday and today. No luck removing the late payment over the phone because it was indeed my fault. The customer service ppl gave me the excuse that they get audited and they can't just remove a late payment without proper justification that it was something on their part. Sigh.. so I just now have to wait to see if my Goodwill Letter works.
That's just bull-you-know-what. They CAN remove a late payment. I would call back (be nice about it) until I found someone with the authority to do this.
From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
You can do the same thing with hard work.
Any suggestions on what wording to use? This will be the 2nd time that I call. Should I ask to directly speak with a supervisor or try speaking with a CS rep again?
Thanks!
@dcw0405 wrote:Any suggestions on what wording to use? This will be the 2nd time that I call. Should I ask to directly speak with a supervisor or try speaking with a CS rep again?
Thanks!
In my limited experience it's often hit and miss. You might get lucky and actually talk to a CSR with training who realizes it can be done. Asking for a supervisor CAN work but it's no guarantee. No particular words are needed. Just be honest and explain your case. That may not be enough but don't give up.