Life...Fun and Kentucky Real Estate

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"Sorry Charlie", Even Though You Qualify For The Loan There Is One Minor (MAJOR) Problem...

This is really worth repeating in my blog because if you plan to get ready to buy a house, you need to check out your credit report.

I even had this be an issue 6 years ago when I thought I was ready to buy a house. Instead of getting the house I wanted, I watched another buyer get it as I disputed an item on my credit report. Don't wait to do this after you start shopping for a home. Do it now.

...we simply won't give you the loan. Nope, sorry. YES, you make more than enough money. YES, your credit score is over 800+. YES you have supported all the documentation and you have been approved with one, tiny, itty, bitty, teenie, weenie, DISPUTE THAT IS STILL ON YOUR CREDIT REPORT!!!!

SORRY CHARLIE~

Anyone else find this problem? I absolutely do not blame the lenders for requiring NO DISPUTES since once upon a time people would dispute tons of items on their reports, buy a home since no one looked at them and then defaulted on their home loan as they did everything else!

I've run across a brand spankin' new glitch which has rared its ugly head. Very, very ugly head. I am lucky to work with a Mortgage Broker who is "hands-on", involved and diligent beyond the call of duty.

After requesting that a PAID SIX YEAR OLD DISPUTE BE SHOWN AS NO LONGER A DISPUTE one of the wonderful collection agencies simply SHRUGGED. "SORRY", THEY SAY. WE DO NOT SUBMIT A LETTER OF RECONCILED DISPUTE TO THE CREDIT AGENCIES. WE JUST DON'T.

Bottom line, the clients were told that if they had the CREDIT BUREAU physically contact them that they would verbally say, "it is no longer a dispute."

What are the odds of that? And, if it IS NO LONGER A DISPUTE WHY NOT PUT IT INTO WRITING?

Credit Bureaus are now becoming flooded with calls such as ours. The Bureaus can do nothing but report what any given CREDITOR reports. We basically have no recourse if we cannot get the Agency to report dropping any DISPUTE and there goes your chances of ever purchasing a home. NO MATTER HOW GOOD YOUR CREDIT IS OR YOUR JOB OR YOUR HISTORY OR WHETHER OR NOT YOU HAVE PAID THE AMOUNT DUE OR WHETHER OR NOT YOU EVEN EVER OWED THAT AMOUNT OF MONEY LEGALLY...SORRY CHARLIE.  

Have any of you experienced this before? When we began there were two disputes. Because BOTH were paid it seemed easy enough to get them off the report. One dropped off right away. The other? Who knows? My clients moved out of their home expecting a sale...a closing. Sad and I am one of many trying to clean up this mess. Any advice from you is welcomed.

Thank you my blogging friends.

Advice from the experienced...Review these facts with your potential Buyers!

Disclaimer: My writings are based upon life experience and I do not claim to be an expert at any of your professions...just mine.  

 

 



Brooks Prime Properties

Specializing in Lake Properties

Lake Livingston Texas

936-295-0005

Comment balloon 6 commentsLizette Fitzpatrick • September 23 2010 07:19PM

Comments

Yep...   It is always a problem regardless of how much you make, what you own, where you've been.  A buyer usually knows of problems in advance, so they should be pro-active and work on resolutions early.  It's just plan smart..

Posted by Ken Cash, Lake Tahoe Lake Front Homes, Luxury Homes, Condomi (CB Select Real Estate at Lake Tahoe - 775.691.3855 - ) about 8 years ago

I am hoping we eventually go back to underwriting loans based upon payment history and not the score alone. 

Posted by Melissa Anderson (Mortgage of Texas & Financial) about 8 years ago

I just don't see financing getting any easier.  They seem to be coming up with any and every excuse to make you give blood in exchange for approval and funding!

Posted by Shelley Rowton, ABR, RSPS - (512) 507-5779 MoveToRealty of Austin (Move To Realty) about 8 years ago

Lizette - There are a ton of issues now with loans. But it really comes down to appraisals and underwriters. Underwriters run our world.

My crystal ball broke so I don't know if it will get any better.

Posted by Ken Barker RealtorĀ® GRI, E-Pro Certified (Dilbeck Real Estate) about 8 years ago

I would not give Charlie a loan either, if you mean Charles Buell.

Posted by Steven L. Smith, Bellingham WA Home Inspector (King of the House Home Inspection, Inc.) about 8 years ago

Well it is becoming more and more common place to have these silly little gliches... The commercial loans are even more difficult right now to obtain.

Posted by Trey Thurmond, College Station , Texas Homes (BCR Realtors) about 8 years ago

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