Mortgage scores & Utilization

[Anonymous]

Here it can happen here  all the time at 90 days.  I am buying one now to close in few days that was  foreclosed on.  The former owner tried to fight the foreclosure 1) by saying " I was only 90 days late and read on line it takes years to foreclose " lol 2) He refused to leave after the  foreclosure and is fighting eviction with the same arguement.   On Friday afternoon 1) He gets 3 days notice to vacate notice 2) criminal occupancy complaint.  He will spend Friday night and possibly til Monday in jail. Depends on bond hearing.  On Monday his three days to vacate is up and I get a Writ and my movers to help put his stuff on the street .  I do this all the time for a large part of my living flipping houses. 

[Revelate]

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@medicgrrl wrote:

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@Revelate wrote:

Possibly in his case looking at that utilization; probably in her case if the CA gets airstruck and that's the last derogatory outside of the deliquencies.

Utilization optimization works the same way on the mortgage algorithms as it does on FICO 8, proceed with confidence in the path you're taking to get them cleaned up and see where they stand; can do FHA at 580 though, higher than that is an overlay so there isn't that far to go unless trying for a different loan product?

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And if may be that they end up FHA.  They currently have a subprime 9% ARM!  I'm really hoping Cap 1 comes thru!  The CA already said they would delete and should have emailed her a letter this morning.  DTI will probably be 25% by the time we get done with all the changes.  We both are new to NFCU and they are hoping to go thru them for the refi.

Do you think hitting the 12 month mark on the lates will do anything for the scores?  These were pulled in March...so less than 6 months since most recent late.

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Probably not on the algorithms used in mortgage underwriting; might under FICO 8/9 or at least I did when my 30D late hit a year on TU back last October.