late mortgage payments, affecting new mortgage ap

Anonymous · ‎01-27-2012

Will I qualify for a new mortgage if I had late payments on my previous mortgage?

36,000 salary, long time employment, average age of credit 18 years, credit utilitzation less than 10%

1 car loan a little over one year old, principal paid down ahead of schedule

TU 687 EX 699 EQ 659

looking at a house at $100,000 with 20% down

sold my house 17 months ago, but missed the last payment because the closing was delayed...mortgage lender reported it as 60 days late when it should have been paid off less than 30 days late closing was just past the grace perios. To be honest there were other mortgage deliquencies as well, as I was then a subprime mortgage (thru no fault of my own...original lender was a crook...literally!)

what kills me is that I COULD have made the payment, but the closing was scheduled....I have been told that since the late payments went right up to the end of the mortgage, they will hurt me more than, say a couple of late payments followed by 6 to 12 months of on time payments which would establish a good recent history

so the underwriters are going to give me the side eye on my mortgage payment history when the rest of my history is good

obviously the house is sold so there doesn't seem to be anything else I can do to improve my record other than wait 7 years for reports to fall off

any insight?

boomhower · ‎01-28-2012

As long as your credit is clean for the last 12 months I wouldn't stress over it to much. Sure, it doesn't look good but with your scores and otherwise clean history in the grand scheme of things it's not a huge deal, just write a good LOE and be done with it.

SunnyWeather · ‎01-29-2012

how detailed do I need to get on the LOE I just wrote it out and it is 2 pages long LOL I suppose that would try the patience of any LO!

trying to distill distill distil,,,,most of my late pays were due to the fact that my first home purchase had NO inspection and the amount of work that was needed was major, unexpected and necessary if I wanted to keep the value of the home up

boomhower · ‎01-29-2012

@SunnyWeather wrote:
how detailed do I need to get on the LOE I just wrote it out and it is 2 pages long LOL I suppose that would try the patience of any LO!

trying to distill distill distil,,,,most of my late pays were due to the fact that my first home purchase had NO inspection and the amount of work that was needed was major, unexpected and necessary if I wanted to keep the value of the home up

That's way to long. Keep it short and to the point. What happened, why it happened, and most importantly why it won't happen again. What you just wrote is just about good enough, just add on what you will due in the future to keep it from happening again. i.e. have an inspection and reserved for unexpected repairs.