Need another lender/asap

princesa40 · Joined: 22 Jul 2006 Posts: 2

Hi all, hope someone here can offer me some advice. I'm at my wits end and I think I may be developing an ulcer :cry:

I signed a purchase agreement over a month ago and had a lender all lined up. We set a closing date and the day before we were to close- lender says there was a "snag". Apparently underwriters would not approve final purchase price which had been updated to include closing costs. So basically I needed to come up w/ $4000 like now.

I have a discharged BK- less than 1 yr., so-so credit (mid was 602-now it's 574!)- so I know my options are very limited. I'm not going to bash my LO, but I've talked to a few other LOs and my realtor and everyone agrees he screwed up somewhere (I didn't list all that went on during the course of this process-but it was bad, really bad). Nothing to be done about that now, though. But I will lose this house if I can't get another lender now.

Any suggestions or is it over?
Nikki :cry:

Greg Phillips · Joined: 13 Dec 2005 Posts: 123 Location: Chillicothe, Ohio

Unfortunately since your bk is not 2 years discharged the only lenders I know that will do 100% financing require a mid score of 580...

That is <2years discharged.

How old is the first report?

You could dispute creditors using your bk papers and try to clean up any incorrect information on credit. If you show proof via bk papers then it should clear immediately so credit can be re-pulled but I would want confirmation the changes occured from each repository before re-pulling.

Another credit bureau provider may score you higher too. Most use CBC but they are about 8 or 9 other we have available.

princesa40 · Joined: 22 Jul 2006 Posts: 2

I've been disputing incorrect info on my credit reports for the last year. You're right, they've cleared up the mistakes fairly quickly. Except for one lingering judgement that keeps showing up as unrated or unreported.

This other lender said they will approve me if I can provide proof that it's in the BK. Problem is- the original creditor sold the acct. to another collector and this other collector is like talking to a brick wall.

I'm nice, I'm polite and always extremely patient. I know bill collectors encounter a lot of nastiness during the course of their day but I've never been one of those people who yells or curses them out when I know it's my debt.

Anyway, I desperately need this company to give me a letter or a printout that shows that the acct. is no longer active and has a zero balance. They've admitted they have this capability but they keep yo-yoing me between agents and stalling about provided me with the info. I don't know what else to do.

As far as my credit scores- the 602 mid score was pulled on 6/15/06. I can't understand such a drastic drop. On myfico.com- my scores are 574, 602, 664 as of 7/17/06- but this isn't what lenders have been getting when they pull the reports. I thought MyFICO was the most accurate and true score.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

One thing to consider is that your report is going to be different than a mortgage report, than an auto loan report. Different parts of your history are going to be more important for a home loan than other areas.

I don't personally handle our non-prime section of business, but I'd be happy to put you in touch with someone in my office to see what we have available. I know they've made some changes to their requirements about bankruptcys recently, so it'd be at least worth taking a look at.

Feel free to give my office number a call and if I'm not there you can call me on my cell phone (it's on my voice mail.) I'll be available tomorrow if you'd like to call then. My ext. is 122.

chow · Posted: Sat Jul 22, 2006 10:41 am Post subject:

"Anyway, I desperately need this company to give me a letter or a printout that shows that the acct. is no longer active and has a zero balance. They've admitted they have this capability but they keep yo-yoing me between agents and stalling about provided me with the info. I don't know what else to do."

Do you have any thing in your paper trail to proove the account was sold and the original collection was in the BK?

Now, when you call this company, see if you can route around the collection staff and get to someone in the accounting area, or the manager. Since you've been nice, they should respond unless the whole offfice is filled with morons. (I have seen whole offices of collection companies who are total morons-I've actaully worked for some.) But there is usually one or two persons around that will help. Your other real option is to file a dispute with the bureaus, and if they don't follow up-go after them. We have a member here who is pretty passionate about these things. You may want to look him up in the member list. "Cedonulli" and "Quixote" are both pretty savy credit bureau guru's. They are both on the first page of the member list.

m2c · Joined: 03 Aug 2005 Posts: 937

Nikki,

Take another tack for a second. Yes, you’re frustrated and disappointed but remember you’ve been positioned. Remember all sales are emotional and in many cases the buyer has been “set up”. No negative connotations; it’s just a common way to close a deal and “after sell’.

The balk by the underwriter appears to be on “value” and not your credit situation. Consider for a moment that you are lucky that the underwriter took an “honest” position and possibly saved you from a desperate situation in the future and even worse credit. Timing is everything so you might go to page A1 on today’s WSJ. Also on web at
http://online.wsj.com/article/SB115353434533614420.html

BKs can be a mess but lingering items usually are easily resolved credit reports. Reading through the lines, it appears you are saying the account was sold prior to filing BK and YOU listed the incorrect creditor on the schedule of debts. Really don’t know what happens in this type of situation even though there’s a paper trail on the debt. I assume the “disputes” of which you speak were done through the three credit repositories. If not, this is the way to go under FCRA.

In the meantime, consider that you may be lucky to have not been saddled with an overpriced home. I’m speculating a bit but from your description the “snag” was due to a last minute increase in the sales price which was more than he or she could stomach. If this is in fact the case, kudos to the underwriter. As you can see from the “blame game” by the Realtor and “other LOs” folks like to pass the buck on very incomplete information (your current LO cannot divulge privilege or confidential information to third parties).

chow · Posted: Sat Jul 22, 2006 10:12 pm Post subject:

I bet Cedo could spit this one out like last month's dead blueberries! :wink:

BECCA9892003 · Joined: 20 Jan 2005 Posts: 400 Location: Altoona, PA

i know its probably to late but doing a rapid rescore that landamerica offers can improve credit in as little as 7 business days.....

just for future reference....

you plug into system how many points you need and it tells you EXACTLY what to do to get it up....then have it re-scored....