Late March Payment in dispute..how does this limit our options??
I have been back and forth on refinancing and my original bank gave us a bad rate. Our current credit scores are 705 and 685..trying to refinance 285,000 with appraised home of 323,000. During the interim, I had asked our current Mortgage company to use applied funds for the March payment and let us pay the other half. I realized in April that they had not done this and I called immediately and had them draft the remaining amount. In that conversation, they assured me it wouldn't be reported as late for March. I called today and they are sending this to their dispute department and it will be resolved one way or the other by 4/20. Prior to viewing my credit report taking their word that it wasn't reported (I have the reference number of the call and the lady's name) I proceeded to apply for a new refinance loan. I haven't heard back from the bank but I NOW see that the mortgage company did indeed report this as 30 days late...Never been late on a Mortgage payment in 7 years living in the home. How does this affect my options if the current lender currently sees this OR if they do not remove it?? It is a Fannie Securitized loan but the late payment was literally for March 2012. Will this disqualify me from refinancing b/c my LTV is 88% and now this 30 day late appearing. What are my options if they don't remove it short of waiting a long time? by Offsui_867_345 from Charleston, West Virginia. Apr 13th 2012
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Ok.. so first.. if you have a 30 day late payment in the last 6 months, then answer is no, you will not be approved.. you can have 1 zero 30 day late payments in the last 12, it just can't be in the last 6 months.. however, if when your lender runs your file through the automated desktop underwriter, and you get an approved eligible, then most lenders will take DU findings even if there is a late payment.. as far as getting it removed.. You can fight this.. if the lender decides to remove it on the 20th, then that's the best case scenario.. If they say no... Then you next step is to walk into your local branch, get the manager involved.. The more noise you make, the more they will listen... if that doesn't work then you need to dispute the item by contacting the credit report agencies, and do it with all 3 bureaus (assuming all 3 are showing it delinquent). It's possible they (your current lender) won't respond to the dispute and it will be corrected that way.. if that doesn't work, then you stuck with the late payment... WilliamAcres.com
Cory Ure (coryure)
#46 ranked lender in Utah - 50 contributions
Generally, for Conventional loans it is usually a 60 day or greater late payment that will prevent you from refinancing. However this is determined by the strength of the rest of your credit report and Fannie Mae's automated underwriting findings. So the short answer is: "No, a single 30-day late in the past 12 months should not prevent you from refinancing." The even shorter answer is: "It depends."What will block it for sure is a "Consumer disputes information" in your credit file on an account with a balance. You will need to get any disputes cleared-up or removed before the loan can be approved.
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
This may be a difficult situation, but it is one that you should be able resolve. If you can show that you gave instructions in March to the Lender to take the payment from your bank account and they failed to do so, they should be willing to re-report the account to the credit bureaus showing not late. Mistakes happen all the time and are easily correctable. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com
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