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Underwriting question/ Credit card

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New Contributor

Underwriting question/ Credit card

I have a question I'm hoping an under writer can answer. I would like to use my va loan this summer, my credit score is a medium 700. I have recently found out that bank of America has been reporting me 90 days late for the past three years. I have been in a special program with them since 08 (divorce) and did not realize they were reporting this way...my lack of attention. I asked them to fix this and they said they are not permitted by law. I have proof I have never missed a payment the past three years. The card was 90 days late when the program was started and they claim I reaged the account prior to the program and this is why it was being reported this way. Well, the card is now current with only 3 payments left. My question is, do I even have a chance for a mortgage loan or will I have to wait a year from now een if the card is payed in full and I have proof of timely payments since 08. Sorry for the lengthy email.
Message 1 of 6
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Senior Contributor

Re: Underwriting question/ Credit card

Your credit score is good if it is mid 700's.  I would guess that as long as everything checks out (DTI, employment etc) then they would be able to overlook this - especially since it's being paid off soon.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 2 of 6
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Moderator Emerita

Re: Underwriting question/ Credit card

IME you can not have any lates within the last 12 to 24 months, depending upon the lender.

 

You have a rolling 90, it appears based on your post. It doesn't make much sense for you to have reaged the account and then let it slide for another 90 days at the beginning. It sounds like they are not reporting correctly and your 90 days would have occurred prior to your re-aging the account. Do your records indicate when you actually missed those payments? Contact the OC again with a copy of your proof. Make them report it correctly -before you apply for your VA loan.

Message 3 of 6
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Senior Contributor

Re: Underwriting question/ Credit card

Bank of America did a similar thing to us when DH went overseas.   We asked for a lower interest rate.   (They REFUSED to do the Serviceman (what's it called??)  interest rate!   Said they do not have to honor it for the deployed.)    They reported late for 6 months before I caught it on the free annual credit report and reamed their backsides out about it.   Each statement showed that the minimum payment and then some was paid every month, on time.  No late fees.   There was nothing on the statements to show that he was "late" with anything.   

 

I made payments every two weeks.

Statements reflected on time, more than the minimum, payments each cycle.

Statements reflected nothing as past due.

 

When confronted, Bank of America said it was their right to punish us for asking for a lower rate.   They refused to correct the reporting.   Disputed it with the CB and it came back as "verified".

 

Ironically,  the month I called them on it, they didn't report late.   See below.

 

December - DH deploys, we ask for the special interest rate for deployed military (denied - Bank of America cuz they don't HAVE to do it!)

January - 30 day late

February - 30 day late

March - 30 day late

April - 30 day late

May - 30 day late 

June - 30 day late

July - I ream them out when I see what they have done (free credit report), no lates reported this month

August - 30 day late, dispute with CB

September - no lates reported

October - 30 day late, comes back "verified" from CB

November - no lates

December - no lates   (Bank of America said we had been punished long enough!  Yes, the rep actually said that!!)

 

When there were credit situations that came up, I would bring in the certified letter I had sent to Corporate Bank of America, along with the year's worth of statements showing that we were NEVER late and we always paid at least the minimum on the bill.   The decision makers would look at the letter & statements, shake their head, and ask how could Bank of America get away with this?   Eight lates that I could prove never happened.  Most of the time, the lenders would choose to overwrite the computer decision.  

 

At the time he deployed, we were screwed by the apt complex for telling them he was deploying (they actually changed the locks right after he deployed, even though we had already paid rent for the following month & still had a few months left on the lease - it's another horror story of greedy corporations who do not respect our military and civilians who go overseas), had to pay for two places to live plus his incidentals overseas, had five out of five family members in school with three tuition bills, etc.  Within months, we had rotated things around and still had three family members in school with tuition bills.   It was a scary time in so many ways.  

 

It's behind us now, but still scars our hearts and our credit report.   

 

And I have to give props to Penfed and USAA for coming through during this wickedly horrible time.  BOTH places extended credit when we lost everything in the rented apt and had to pay for 2+ places to live (the apt and another place, plus DH's incidentals).   Penfed manually overrode the computer decision when they saw proof that there were no lates.   USAA extended 10k credit right away.  DFAS had a hiccup so we were not receiving any hazard pay, etc. 

 

I wish you luck in getting it corrected, but I am not holding out much hope Bank of America will budge.    I have heard similar stories from military and civilians alike.   Bank of America has done this to lots of people who asked for a lower interest rate or a payment plan.

Message 4 of 6
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Contributor

Re: Underwriting question/ Credit card


@IOBA wrote:

Bank of America did a similar thing to us when DH went overseas.   We asked for a lower interest rate.   (They REFUSED to do the Serviceman (what's it called??)  interest rate!   Said they do not have to honor it for the deployed.)    They reported late for 6 months before I caught it on the free annual credit report and reamed their backsides out about it.   Each statement showed that the minimum payment and then some was paid every month, on time.  No late fees.   There was nothing on the statements to show that he was "late" with anything.   

 

I made payments every two weeks.

Statements reflected on time, more than the minimum, payments each cycle.

Statements reflected nothing as past due.

 

When confronted, Bank of America said it was their right to punish us for asking for a lower rate.   They refused to correct the reporting.   Disputed it with the CB and it came back as "verified".

 

Ironically,  the month I called them on it, they didn't report late.   See below.

 

December - DH deploys, we ask for the special interest rate for deployed military (denied - Bank of America cuz they don't HAVE to do it!)

January - 30 day late

February - 30 day late

March - 30 day late

April - 30 day late

May - 30 day late 

June - 30 day late

July - I ream them out when I see what they have done (free credit report), no lates reported this month

August - 30 day late, dispute with CB

September - no lates reported

October - 30 day late, comes back "verified" from CB

November - no lates

December - no lates   (Bank of America said we had been punished long enough!  Yes, the rep actually said that!!)

 

When there were credit situations that came up, I would bring in the certified letter I had sent to Corporate Bank of America, along with the year's worth of statements showing that we were NEVER late and we always paid at least the minimum on the bill.   The decision makers would look at the letter & statements, shake their head, and ask how could Bank of America get away with this?   Eight lates that I could prove never happened.  Most of the time, the lenders would choose to overwrite the computer decision.  

 

At the time he deployed, we were screwed by the apt complex for telling them he was deploying (they actually changed the locks right after he deployed, even though we had already paid rent for the following month & still had a few months left on the lease - it's another horror story of greedy corporations who do not respect our military and civilians who go overseas), had to pay for two places to live plus his incidentals overseas, had five out of five family members in school with three tuition bills, etc.  Within months, we had rotated things around and still had three family members in school with tuition bills.   It was a scary time in so many ways.  

 

It's behind us now, but still scars our hearts and our credit report.   

 

And I have to give props to Penfed and USAA for coming through during this wickedly horrible time.  BOTH places extended credit when we lost everything in the rented apt and had to pay for 2+ places to live (the apt and another place, plus DH's incidentals).   Penfed manually overrode the computer decision when they saw proof that there were no lates.   USAA extended 10k credit right away.  DFAS had a hiccup so we were not receiving any hazard pay, etc. 

 

I wish you luck in getting it corrected, but I am not holding out much hope Bank of America will budge.    I have heard similar stories from military and civilians alike.   Bank of America has done this to lots of people who asked for a lower interest rate or a payment plan.


Eh, SCRA protection is optional?  I really don't think that is accurate; it would be taken on a case by case scenario, the bank would have to get a court order to dhow that the deployment would not have an adverse impact on you/your family's ability to pay the interest rate about 6%.  As long as you submitted the correct paperwork (namely, deployment orders, etc), it's a program that is put in place to protect service members, not the other way around.  So unless they went through the hassle of getting a court order for your case in particular, if you submitted everything within 180 days of the deployment date, they are required to honor it.  The protection also only applies to debt incurred prior to the deployment, (or maybe also while on deployment?).  I know the rules for when the protection applies varies between the different clauses.

 

And them punishing you for requested SCRA?  Look closely at all of your documents and your payment history.  If you really feel they are "punishing" you by reporting late payments that aren't accurate, that is just as big of an issue as if them inaccurately reporting any other information to the CRA's.  If you have in fact been on time with your payments and in the correct amount, and they are reporting falsely to the CRA, I strongly recommend looking into your rights in regards to credit reporting and beginning the process of having that information corrected.

 

Best of luck.


Starting Score: EQ-484(10/10/2011) TU-533(10/10/2011)
Current Score: EQ-701(1/18/2013) TU-735(1/20/2013)
Goal Score: 750s!!


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Message 5 of 6
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Senior Contributor

Re: Underwriting question/ Credit card

1.   Yes, the debt was prior to deployment.   (That deployment happened super fast.)  The interest rate was 25.99%.   <--- ouch if you have a balance & can't pay it off

2.   Had all docs, Bank of A said no.  I was actively being aggressive about it BUT then we lost our place to live.

3.   So the Bank of A was put on the back burner as I continued to make on time payments while I dealt with loosing our stuff in the apt and the apt complex.

4.   The apt complex actually sent a demand ---   all irreverent.

 

I can easily prove with more than a year's of statements that no payments were late.   At this time, it's  a mute point.  The lates are on the CR.   I disputed directly with Bank of A.  I disputed directly with CB.   Both refused to correct the reporting.   

 

* Bank of A said it was their right.

* CB said it was verified.

 

When the issue comes up with other creditors, I show them the Bank of A statements.  They can verify themselves that the payments were not late.   It's easy enough to see on the statement.  Amount due, amount paid, date paid...it's all right there.

 

My response was share my story and confirm Bank of A has done this to other people.   I don't know of anyone who has had success with getting Bank of A to behave differently before, during, or after the fact.

 

And the SCRA (thank you - I couldn't remember what it is called) was passed by Congress, I think.  It's not suppose to be considered optional, yet every business reserves the right to allow, or not allow, this benefit.

 

For us now, it's no longer an issue.  If he gets deployed again, we are pretty much debt free.  We have funds in the bank to pay off the one debt in his name and emergency funds.   We don't want to ever be in that situation again.   

 

We are driving our financial bus - not the lenders!  And I can proudly say Bank of A no longer makes any money from us in any way.

Message 6 of 6
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