Mtg sold-how will this affect us

[debtfree09]

We refinanced our house in 2004 to send our son to college. It was with Ameriquest (big mistake.)  That company was sold to Citiresidential who had our mortgage from Oct 2006 to Feb 2009.  They have now sold it to American Home Servicing.  Right now no one is reporting our mtg.  Citiresidential shows a zero balance and says sold.  I called American Home Servicing after pulling our credit report and seeing that no one was reporting.  They said they only report once every 3 months and since we didn't start paying them until Feb they wouldn't report until after April 15.  Will this be considered a new mortgage since Citiresidential shows a zero balance right now?  How will this new mortgage affect our Fico score seeing as how no one is reporting a current mortgage now.  Thanks in advance.

[MattH]

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@debtfree09 wrote:

We refinanced our house in 2004 to send our son to college. It was with Ameriquest (big mistake.)  That company was sold to Citiresidential who had our mortgage from Oct 2006 to Feb 2009.  They have now sold it to American Home Servicing.  Right now no one is reporting our mtg.  Citiresidential shows a zero balance and says sold.  I called American Home Servicing after pulling our credit report and seeing that no one was reporting.  They said they only report once every 3 months and since we didn't start paying them until Feb they wouldn't report until after April 15.  Will this be considered a new mortgage since Citiresidential shows a zero balance right now?  How will this new mortgage affect our Fico score seeing as how no one is reporting a current mortgage now.  Thanks in advance.

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If your history is otherwise clean and there is at least one other installment loan on your reports (such as a car), then probably the impact of not having a mortgage on your score should not be very severe.  Lots of regulars here have FICO scores over 760 without any mortgages.  When the new holder of your mortgage does start reporting, they should report it with the old age.  When Washington Mutual sold my mortgage to Wells Fargo, the WAMU tradeline says "Account transferred to another office/Transferred to another lender or claim purchased" and my Wells Fargo tradeline reports the original date the loan was made under "date account opened."

If, when it does appear on your history, they report it as though it were a new loan then would be the appropriate time to make a stink, jump up and down, etc.

[debtfree09]

Thanks for the info.  Glad to know they should report with the original date.  We are 5 months discharged from Chapter 13 bankruptcy and no other installment loan.  We are looking to buy a car in a month.  Trying to figure out if our scores will go up once the mortgage starts reporting again. 

Message Edited by debtfree09 on 04-05-2009 08:14 PM

Message Edited by debtfree09 on 04-05-2009 08:15 PM

[MattH]

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@debtfree09 wrote:
Thanks for the info.  Glad to know they should report with the original date.  We are 5 months discharged from Chapter 13 bankruptcy and no other installment loan.  We are looking to buy a car in a month.  Trying to figure out if our scores will go up once the mortgage starts reporting again. 

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Were any auto loans included in that BK?  Were there any late payments on any auto loans during the period leading up to that BK?  Was there a repossion of an auto at any time?  Most automotive lenders pull a special "auto-enhanced" version of FICO scores (which consumers cannot purchase anywhere of which I am aware) that give greater emphasis to any auto loans in a person's history.  Some car salespeople will let customers see their auto-enhanced scores (if the customer asks nicely), and several posters on the auto finance board who have not had any issues with car loans have reported their auto-enhanced scores were pretty close to the scores they pulled from myfico.  But obviously a person who has had problems with auto loans in the past will have a lower auto-enhanced score.

I suggest you repost your question about an upcoming auto purchase on the auto loans board, and when you post there you should include specific details (when you plan to purchase, whether you are thinking to buy new or used, what trade in and/or down payment you expect to have, all events related to auto finance and precisely when they happened, and so forth).  Several regulars over on the auto loans board have experience in the auto finance industry, so they should be able to be much more helpful than I ever could.  But for them to be helpful you should post dramatically more detail and specificity about your situation.

You should also talk with your insurance agent as soon as possible about what coverage for your intended purchase would entail, because many insurance companies include credit history as a factor when they make coverage and rate decisions.

[debtfree09]

Thank you.  Yes, our car was included in our BK but we paid for it and on our loan it says paying/paid as directed (or something like that) with a zero balance.  We had a couple 30 days in 2004.  We have 2 other auto loans closed still on our credit report with no lates.  I've already spoken to a couple dealers about a new car and told we could get financed and we have been with our insurance company for 10 years and they pulled a credit report on us in 2008 when we added our son to our policy and our rates did not change and we did not get dumped so we're good on that end.  Thanks for the info.

BTW are scores in the mid-600s already, which I didn't think they really would be yet.

Message Edited by debtfree09 on 04-06-2009 06:14 AM

[MattH]

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@debtfree09 wrote:

Thank you.  Yes, our car was included in our BK but we paid for it and on our loan it says paying/paid as directed (or something like that) with a zero balance.  We had a couple 30 days in 2004.  We have 2 other auto loans closed still on our credit report with no lates.  I've already spoken to a couple dealers about a new car and told we could get financed and we have been with our insurance company for 10 years and they pulled a credit report on us in 2008 when we added our son to our policy and our rates did not change and we did not get dumped so we're good on that end.  Thanks for the info.

BTW our scores in the mid-600s already, which I didn't think they really would be yet.

Message Edited by debtfree09 on 04-06-2009 06:14 AM

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 Here's a recent table of Toyota Auto Finance tiers, based on the auto-enhanced FICO score:

• TIER 1+ FICO 720+ (UP TO 60 MOS) 5.90
• TIER 1 FICO 719-690 (UP TO 60 MOS) 5.95
• TIER 2 FICO 689-670 (UP TO 60 MOS) 7.35
• TIER 3 FICO 669-650 (UP TO 60 MOS) 9.30
• TIER 4 FICO 649-630 (UP TO 60 MOS) 13.50
• TIER 5 FICO 629-610 (UP TO 60 MOS) 15.75
• TIER 6 FICO 609-580 (UP TO 60 MOS) 17.75
• TIER 7 FICO 579-520 (UP TO 60 MOS) 19.10

You should of course also check with credit unions at your employer or locality, to see whether they can do better than the dealer.  Be aware that some lenders will give better offers with a larger down payment.

[debtfree09]

Thank you for the Toyota info.