bank » Mortgage and Insurance

What should we do if bank messed up our mortgage loan?

Mar 202011

bymarsmet47

We finally found a property that we like, but it turned out to be a detached condo. Our bank gave us a great quote on the mortgage rate that we decided to lock, and two weeks before the closing and approval of the loan we were told that the property was wrong and the original loan won’t fit our property type, and in order to continue we have to pay additional 5% down and also a much higher mortgage rate. At this point we can’t afford the extra 5% and had to decline the loan, but we already paid the home inspection ($ 300) and the mortgage processing fee ($ 600). We will get the fee back with the bank declining our loan but not the home inspection. Our feeling is that the bank has messed up toward the beginning, are we entitled to the reimbursement of the inspection as well? Also now we had a declined loan and credit check on our record, will we get affected for our next mortgage application? Any help will be great.
The realtor did fax the sale contract to the loan officer stating it’s a detached condo. However the he assumed it was a house because of the total amount of mortgage to be financed and it was also detached. I guess there aren’t many detached condo out there…

a lender has offered us a 25% interest loan…isn’t that ususary in the state of CA???

March 20, 2011
Posted by jedwan at 3:24 pm
11 Responses
mortgage
bank, credit-check, home inspection, interest loan, Loan, loan-officer, messed, mortgage, mortgage application, mortgage help, mortgage processing, mortgage rate, mortgage-loan, realtor, should

Minimizing Damage from Wife’s Credit Spree

Mar 202011

First time poster who just found this board in looking for answers for how to address my wife’s recent credit spree.Â

Long story but, for various psychological reasons, about six months ago, my wife went on a “credit spree” using her excellent credit to open up 7 store-based accounts and maxing them out within a month (total of $12K) — even though she had no means to pay them (unless, of course, she came to me since I manage our bank accounts). Â

She concealed this from me including lying about where she got things (e.g., gift from her mother) and intercepting the bills before I got home.Â Since opening the accounts, she has barely made any payments on them; almost all are closed and looking at her CR, they all seem to be at 120 or 150 days late. Â I found out about them when she neglected to grab a couple of bills from the mail and I opened them when I saw the words “statement enclosed” on the envelope — my initial thought was identity theft since she got a notice from her work about a data compromise a few weeks ago, but I was in for a big surprise.Â

Needless to say, we have a bunch of personal issues to resolve but my short term focus is on what to do about these bills — especially since several seem to be close to the 180 day point where per other posts, they get charged-off (which I take to be an even bigger hit than simply paid very late).Â The cards are in her name only.Â I am prepared to pay them but want to minimize the impact to her credit scores (and of course, would not mind reducing the fees and penalty interest rates that have been applied) Â — especially since we will eventually (5 years or so) from now want to move to a new house and will need a mortgage (before this we both had upper 700′s scores).

The credit cards are from:

Bloomingdales/DSNB (2 accounts – one basic + one major purpose on store card)

GE/Lord and Taylor

WFNNB/Ann Taylor (2 accounts – one Mastercard + one store account)

WFNNB/New York and Company

Victoria’s Secret (does identify WFNNB on CR but does so in materials they sent)

A few questions –

1. My main objective is to get the negative history deleted.Â What is the likelihood of the OC agreeing to delete all of the negative history (or even the whole account) in exchange for PIF?Â A variant on that, do you think they would (1) delete the account or (2) delete the negative history and state the account was paid in full while waiving some the late fees and penalty interest rates?Â (Please indicate if you have seen this work/not work with some of the listed OCs).Â Will OCs delete history/have sympathy where a compulsive mental disorder led to the buying?

2. Since many of the accounts are owned by WFNNB, is it better to deal with all of the accounts at once or call individually for each account?

3. What is the difference in terms of FICO hit from (a) 150 day day, paid in full; (b) 150 day late, settled in full and (c) charged off, settled in full?

Thanks for your guidance

K the C

March 20, 2011
Posted by admin at 6:05 am
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Rebuilding Credit
bank, bank-accounts, dsnb, FICO, guidance, pif, wfnnb

Settled account vs. paid in full account

Mar 182011

HelloÂ

I have a home equity lines of credit that is listed as charged off on my credit report. . Â I am trying to get the CO record off my credit and the bank has offered to settle the account for 70% of what is owed. Â The representative at the bank advised me that they will release the lien and settle the account in full if I pay 70%. Â I received a letter stating the settlement amount, however it does not mention anything about changing my credit report to reflect Settled/paid in full. Â I tried to request this in writing but the bank says they use standard forms that they cannot change but assured me this will happen when I receive the paperwork to close out the account. If I settle and send the bank the funds…. what can I expect to see on my credit report and is it significantly better than Charged Off. ? Â Does anyone know the actual affect (number of points) difference that this makes to your score? Â Does anyone know the difference it will make if the bank actually receives 100% of the funds in full after the account is already charged off? I will still have the lates which are over 180 past due either way. Â Thanks for the adviceÂ

March 18, 2011
Posted by jedwan at 5:04 pm
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Rebuilding Credit
account, Advice, already-charged, bank, close-account, credit, credit-report, difference, funds, home equity lines, home equity lines of credit, know-the-actual, Paperwork, score, send-the-bank, settlement, the-bank, the-difference

when will this fall off my report?

Mar 172011

I have a line of credit that has been charged off . It has a limit of $3000 and a balance of $2879. It was opened in Feb 2004 and only two payments were made on it before I defaulted on it. Both TU and EX show it will fall off in 09/2011. Shouldn’t it be sooner? I know there weren’t payments made on the account that far out, but I don’t have proof of when I made the last payment. Should I dispute it and see what happens or just wait it out until September? If I dispute it through the credit bureau’s, will the bank show them proof of when it was last paid? Or should I write a dispute letter directly to the bank?Â It is still with the original creditor, not a collections agency. This account is being factored into my utilization even though it’s charged offÂ and it is hurting my scores (everything else has a $0 balance right now) so I want to get it off as soon as possible.

March 17, 2011
Posted by jedwan at 3:15 pm
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Rebuilding Credit
balance-right, bank, being-factored, collections agency, credit, credit-bureau, creditor, everything-else, made-the-last, wait-it-out

Repaying original creditor… Rep states won’t removed collection

Mar 172011

I had a Suntrust bank account charge off a few years ago. I needed the account number for updating some investment information. I actually had to call the bank my account number. While talking to them I asked the rep if I were to pay back the balance in full if my account would be retracted from the collection agency. She stated that if paid in full all they would do is simply contact the collection agency to make them aware my debt had been paid in full and my account would then be listed as a paid collection. Is that possible since I’m not dealing with the collection agency and paying the bank that they work with the collection agency regarding my account? I have no desire to pay the collection agency unless I can work out some type of arrangement with them. I don’t have a whole lot of money but am looking to pay off debts starting with the small amounts and easiest to remove first. I actually have a library collection on my credit report, hopefully that won’t be on there for 7 years.

mortgage insurance collections

March 17, 2011
Posted by admin at 2:49 am
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Rebuilding Credit
asked-the-rep, bank, call-the-bank, collection, Contact, credit-report, creditor, debts, debts-starting, Desire, library collection, money, simply-contact, small-amounts, some-investment, suntrust-bank, the-collection, whole lot

Advice Needed about Charge-Off and GW vs. PFD

Feb 242011

Greetings! Â As a new member of this community and a novice in the world of GWs, PFDs, etc., I would greatly appreciate your advice about a serious problem regarding my daughter’s credit situation. She is in her early twenties, living on her own, and has had two credit cards with Citibank for approximately two years each. Her payments on each card, which were subsidized by me, were timely until November 2010 after which I sold some stock in part to help her pay off both cards. However, there was a delay in my receiving the proceeds of the sale and then in transmitting the needed funds to her, so that by the time she contacted Citibank in February to make payment, one card had a balance of about $1700 and was 90 days overdue, while the other account had a balance of $2700, was 120 days late, had been charged-off/closed just 4 days prior to her call, and is currently awaiting transfer from Citibank to a lawyer. My daughter immediately paid the total balance due on the open account, but was told that it might still be subject to adverse action at some future time because it was already â€œin a liquidation portfolio in the escalation department.â€ We are also willing to pay off the entire balance of the closed account but have several questions about the best way to deal with this urgent situation, namely:

1.Â Would it be preferable for us to (1) pay the entire charge-off and then send Citibank a GW letter requesting that the account be removed from my daughterâ€™s credit report?, OR (2) pay a settlement amount and then send a GW requesting that the account be removed from the report?, OR (3) pay a settlement amount and then send a PFD letter indicating our willingness to pay the remaining balance? In the latter case, can we request a PFD even if the debt is not being disputed?

Â Â

2. Regardless of which type of letter might be best, is it premature for us to send one at this time, since there has been no opportunity as yet to demonstrate renewed and consistent responsibility in making timely payments?

3. I am very distraught over my partial responsibility in precipitating this serious credit problem for my daughter and would be glad to send such a GW or PFD letter myself, clarifying my role and sense of responsibility, etc. However, would it be more appropriate and effective for my daughter to send the letter and to indicate that I encouraged her to do so? Also, if I were to send the letter, would they check my credit score (not good) and take that into consideration?

4. Is there anything we can do at this time, in our written communication with Citibank, to minimize the possibility that the bank might take adverse action on the other account which is still active but was 90 days overdue at the time we paid the full balance? Or is it better not to refer to this account at all in the proposed letter dealing with the charged-off account?

Â 5. With regard to my daughterâ€™s future judicious use of the remaining active card, I understand that her monthly charges should be modest in relation to the credit limit, but for the sake of averting adverse action by the bank, is it preferable for her to pay off the entire amount each month or to let a small amount of interest charges accrue and be paid?

Â 6. Does a successful outcome for a GW or PFD letter jeopardize oneâ€™s future ability to obtain a new credit card from the same bank, even a secured card?

Â I apologize for this lengthy posting, which is a sure sign of my lack of knowledge and experience in this area, and would be very grateful for any assistance you can provide. Many thanks for your forbearance!

gw or pfd

February 24, 2011
Posted by admin at 10:34 am
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Rebuilding Credit
account, Advice, bank, credit, Credit Score, daughter, forbearance, remaining, send-the-letter, time, timely-payments, willingness

Savings secured loan to boost score 70 points?

Feb 212011

Trying to get the score up to buy a house in 6-8 months. The morgtage will be in my husbands name as he is the sole income provider. We just got doen paying 5k off in cc debt copllection accounts. He does have a foreclosure on his credit but it will be 3 years in about 8 months to a year. I called our bank and they sayed if you have atleast 6k in your savings which we do they have something called a savings secured loan this is a loan where they give you money you put it into your savings and if you don’t pay it back they take it out of your savings. The terms is 12 months I’m thinking this will really boost H’s score. What do you think?

February 21, 2011
Posted by jedwan at 10:06 pm
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Rebuilding Credit
bank, credit, doen-paying, his-credit, Savings, savings-secured, sole, take-it-out, your-savings

Young, Stressed, And in need of direction:

Feb 132011

Hello everyone, Â (CLIFFS BELOW IF YOU DO NOT WISH TO READ)

I am 24 years old (Jan 3rd) and in need of some guidance. Let me break it all down from the beginning so as to receive the best possible help from you seemingly awesome people.

In 2005, I turned 18, and unlike most (assumption), I didn’t receive hundreds of credit card offers in the mail and go on a shopping spree, actually, totally opposite scenario. I never received/applied for one credit card. I had my first son when I was 17 and was married at 18. I opened a bank account and all was going well. Living with my wife, son, sister and parents in a small house in Florida, life was very stressful. I was forced into putting ALOT of money into my parents house, almost all of my minimum wage income working at Walmart. When my car broke down, I was pushed into an absolutely stupid decision: Charge the parts I needed for the car and pay bills with my debit card with money I didn’t have in the bank.

This obviously caused my account to go negative and a downward spiral ensued from there. The account was overdrawn $1,058.00. The electric bill I paid with the card bounced but they still listed that amount as what I owed them plus fees. Shortly after that, I enlisted in the military on a short stay of 4 months when I was medically discharged. Back in civilian life, my only problem was that damn bank and the stupid decisions I made to be put in that situation. In 2007, I opened 2 credit cards with HSBC and one with Capital One. All cards had a $300 limit. During this same time, I also opened an account at a local furniture place for $2000 at $99 a month for a table and bed. (Again, paying for my parents misfortunes).

During my stay in the military, the Electric bill in my name was defaulted on by my stepfather to the tune of $600. Anyway, time passes and here we are in 2009. Understanding I can’t afford life in Florida with my leeching parents, I pack my family up and move to Indiana with no job, no hopes of a job in a bad economy and $3,000 cash to survive on. I apply for unemployment from Florida and start bringing in $150 a week. My furniture account from Florida is still active and..what a shocker, it’s my stepfathers responsibility and he defaults on the last $120. At this point my parents are divorced, and my mother is living with me collecting social security and helping out. I get a job at a pizza joint, save a bit to get a cheap car and start delivering.

All is “OK”, until my mother decides she is leaving and goes back to my stepfather. This crushed my very existance financially and I can’t afford my bills. A 3 line cell phone account with T-mobile goes under, $1,057 after the $200 early termination fees along with all 3 of my $300 limit credit cards. I’m making $6 an hour delivering pizza and can barely afford the $550 rent, let alone all my other bills. All hope is lost, and I’m literally a day away from destruction when a First Premier Bank credit card offer comes in..for $700. This is a lifesaver and I use it and pay on it for about 3 months. I get crushed with the payments and that too, defaults.Â

On to today, I am 24, with 2 children and a wife and a respectable job making 80% more than I was. All of my skills are finally put to good use and life is good..or is it? I start calling dealerships to finance a vehicle, because the car I purchased to deliver in is months away from falling completely apart. One place says no way, another, then another, then another says “THERES HOPE! with $10,000 down”….Awesome. I’ll get right on that..would you like that in a specific denomination? I cannot finance any vehicle, even offering $4,000 down with references and a good job. I need help.

I had been reading alot on these forums for a few weeks and other websites, and realized that the collection agency for the bank in Florida was only reporting to Transunion, and the dates and amounts were all wrong and lacking information. I submit an online dispute and within 9 hours, I am sent an email from Transunion: DELETED! I almost cry tears of joy, but realize I still have bigger problems and I am really on the edge and stressed out.

Here are the CLIFFS if you do not care about the story: In total, I am approximately $3,300 in debt on my credit report after the bank was removed. These accounts are all from 2007 with 2 being from 2009/10.Â

Currently reporting negatively is:

First Premier Bank Credit Card for $800

HSBC account 1 for $413

HSBC account 2 for $417

T-Mobile for $1,073

Capital One for $403

Furniture Place for $220

Columbia House for $69

2 hospital bills for $80 and $40 respectively

and I believe that is all.

My credit report from Equifax is listing my scores as: 339 EQ, 333 EX and 388 TU. I believe Equifax scores differently because my recent TransUnion report purchase and auto loan request listed my score at 486 or around there. All of these accounts are in collection with the exception of the more recent First Premier Credit Card, Capital one and furniture place.Â

This is all absolutely crazy to me, I have seen people say “I am $40,000+” or “insert random crazy number above $10k here” in credit card debt. The fact that they even got that far is astonishing. I guess me being young and getting into a credit based world in my 20′s where no one was extending credit helped me in the “gross” department.

Fact of the matter is, I am around $3,500 in debt..maybe less. I successfully disputed the $1,058 from the bank and that is gone from my report. The debts above are what is on my report and yeah..my question is, what do I do now? I have not ONE account listing positively, cannot get approved for a loan understandably and wanting to pull my hair out. It is my understanding that paying these debts will do my score NO GOOD whatsoever..am I wrong? Will paying any of these balances assist my score or approval rate?

I have the means to pay my ENTIRE OVERALL GROSS DEBT right this instant. Immediately..but what should I do? Will it help? Am I doomed to wait 7 years before I can even breathe normally? Where do I start? Please help. Thank you in advance for any assistance. My debt to income ratio is like 1%, I can handle all of this, I just need to know how and how it will affect my scores. I can provide ANY additional information instantly upon request. Oh, and I also just disputed Columbia House because they have no leg to stand on. I did not open any account in 2010 and I owe nothing to them. Thanks again.

February 13, 2011
Posted by admin at 5:21 am
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Rebuilding Credit
bank, columbia-house, credit, Credit Card, first-premier, florida, furniture-place, house, military, mother, Parents, report, score, stepfather, wife

Disputing A Debt

Feb 122011

Long story short…given the number to a collection agency by my bank when trying to figure out some charges on an account that had been closed for months.Â I think it’s about $80.Â Mind you, I have received NO communication from this bank at all.Â I noticed the fees when I was looking for a copy of a check online.Â The bank would not discuss it with me.Â They couldn’t even access my account records!Â WHAT?

So I called the agency, they took my address and said they’d send me a letter telling me about how I could dispute it.Â I have yet to received anything.Â What do I do?Â It’s been 3 weeks since I spoke to them.Â Do I just write them a letter saying to send me the letter or should I just go ahead and tell them I dispute the charges?

I would pay the stupid $80 just to be done with it if they would take this OUT of collections, but I’m not going to tell them that yet for fear that they would take that as admission that I owe the debt.Â They never gave us the opportunity to address this before they sent it to collections.Â So silly and we’re in the midst of purchasing a home…I’m afraid it’s going to pop up on my credit reports.Â

Do I have any recourse since the collection agencyÂ failed to provide the information to me within 5 days as required by the Fair Debt Collection Practices Act?Â Â How could we prevent this from showing onÂ the credit report?Â

February 12, 2011
Posted by jedwan at 2:33 pm
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Rebuilding Credit
account, account-records, address, bank, credit, figure-out-some, letter-saying, letter-telling, recourse-since, the-collection, the-opportunity

Starting the rebuilding process!

Feb 092011

First off I want to say thanks so much to everyone here, y’all have been so helpful thus far.Â So We are trying to build a new home I pulled both of our scores via an online free credit report and thought we were fine for a mortgage loan as the bank requires a median score of 680.Â However, when the bank pulled our scores they were EXTREMELY different from what I had seen.Â Needless to say, we are very disappointed but highly motivated to make it right.Â I want advice on where to go from here.Â Please, any advice is greatly appreciated!!

My scores are Eq 624, Trans 623 Xp 644

My report contains:

-2 student loans (not in repayment yet)

-real estate land loan (current no lates) est 4/07

-rv loan (current no lates) est 6/06

-auto loan (current 2 lates from 07) est 9/06

-5 medical collections (PIF last week)

-home depot cc $0Â (2 lates in 09) est 6/03

-brcly cc $0 (3 lates in 09) est 5/07

-old navy $0Â Â (1 late 05) est 6/04 closed

-lowes $0 (3 lates in 09) est 9/07

-kohls $0 (1 late 5/10) est 11/07

-VS cc $0 (1 late 05) est 2/03 closed

-Zales $0 (1 late 05) est 6/04

Everything else is in good standing.Â Several years ago, I paid all of my cc’s off.Â From what I hear now that wasn’t the best thing to do because now I have no cc’s that I currently use.Â How much can I expect my score to increase with the medical collections paid in full (they all agreed to delete)? Also what is the best way to know what is happening with my score? I’ve heard over and over not to continue to pull your score so I’m scared to do it again.

Now my husband his scores Eq 580 Tr565 Xp707

On his report:

-mobile home financed (current no lates) est 99

-real estate land loan (current no lates) est 4/07

-RV loan (current no lates) est 6/06

-auto loan (current no lates) est 10/08

-2 medical collections (PIF last week)

-yard card CC $3048 (5 lates 09, 12/10) est 7/08

-old navy cc $0 (1 late 05) est 6/04 closed

-best buy cc $0 (2 lates 09) est 5/07

-credit union loan $0 (1 late pmt 05) est 05/04

Sorry everyone I know that this is a lot of info, I just really need help. I am so clueless when it comes to this and we are really wanting to build our home.Â As I said any advice is greatly appreciated.Â Thanks so much in advance.

KOHLS PAY FOR DELETE

February 9, 2011
Posted by admin at 5:29 am
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Rebuilding Credit
bank, greatly-appreciated, make-it-right, medical, score, scores, Student Loans, tr565-xp707

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