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Old 07-11-2015, 11:49 AM
 
15 posts, read 28,238 times
Reputation: 10

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Husband and I are purchasing a home using FHA. We were supposed to close June 30th but our broker didn't order the appraisal in time and things got pushed back. Sellers agreed to an extension to July 10th. We have hit one snag after another since then. The serious snag is that we paid off an account that was in collections. EX and EQ removed account from report. TU did not even though they were provided all documentation to do so. They wanted a verbal confirmation that it was paid and collection agency would not provide that.
Broker said he received authorization to submit loan to senior underwriter for final approval with an addendum that collection would be removed. This was Friday at 3pm. We were supposed to have an answer by 6pm that never came. Sellers were willing to extend but wanted to keep our escrow in case it didn't go through. We were VERY uncomfortable with that and realtor said it was not a good idea. So we backed out and they put the home back on the market.

We email broker with a "we are done with this. We're just going to find a rental" as we have school aged children and need to be settled by mid August. His response was "I'll have a definite loan commitment at the least on Monday, more than likely a clear to close."

I just do not believe him anymore. We have 4 children to think about and the things he has said don't make sense to us. We're told these things are "normal in the business." Like our loan sitting on someone's desk for a week? Is that normal?

Anyway, we're trying to determine whether we should wait until Monday or go for a rental property now. We don't have to sign for the rental immediately but they will pull our credit and if there is ANY chance at all of this loan going through, we don't want them to see another credit pull on our report.

ANY help, thoughts would be greatly appreciated at this time!
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Old 07-11-2015, 12:56 PM
 
24 posts, read 39,191 times
Reputation: 21
Quote:
Originally Posted by krismosch View Post
They wanted a verbal confirmation that it was paid and collection agency would not provide that.
Might be the way your trying to do a third party verification?

I had a collection account for capital one. bottom line, I had to take care of it to close (I think my LO said it was a FHA requirement.?) I was fortunate to get it settled for less than 50% of the original amount.

First time third party called Cap One I told them there was a third party on the line doing a verification. Cap one was very carefully wording how a payment had been made but still in the 22 day waiting period for it to clear (it was a debit from my checking, so not sure what they were waiting for). When asked again by the third party, she ignored them and began to lecture me they will only address me. then repeated the same statement as before. We were not going anywhere. Decided to hang up.

Called the third party verifier back (stress level climbing back up) and we tried cap one again.
This time I had a script of exactly what questions to ask:
1. Announce a third party is on the line
2. Give account number
3. Verify they have record - provide identity verification as asked
4. Ask verification of original collection date and amount
5. Ask if a payment made on this account in the last 30 days. If so, please provide amount paid and date of the transaction.
6. Ask for verification collection efforts have ceased as a result of the payment.

The new Cap One person I got understood the third party was listening, answered my all my questions with factual answers. Got off the phone and the third party verifier closed out the inquiry from the bank. When it went to underwriting, I just had to provide documentation from my bank which showed the transaction of the payment being made to Cap one.

Point is, how one approaches doing a thrid party verification may impact the effectiveness, keep calling the collection agency until you get a person who will cooperate. LOL

Last edited by youngins; 07-11-2015 at 01:05 PM..
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Old 07-11-2015, 02:55 PM
 
3,317 posts, read 7,251,326 times
Reputation: 4095
Quote:
Originally Posted by krismosch View Post
Husband and I are purchasing a home using FHA. We were supposed to close June 30th but our broker didn't order the appraisal in time and things got pushed back. Sellers agreed to an extension to July 10th. We have hit one snag after another since then. The serious snag is that we paid off an account that was in collections. EX and EQ removed account from report. TU did not even though they were provided all documentation to do so. They wanted a verbal confirmation that it was paid and collection agency would not provide that.
Broker said he received authorization to submit loan to senior underwriter for final approval with an addendum that collection would be removed. This was Friday at 3pm. We were supposed to have an answer by 6pm that never came. Sellers were willing to extend but wanted to keep our escrow in case it didn't go through. We were VERY uncomfortable with that and realtor said it was not a good idea. So we backed out and they put the home back on the market.

We email broker with a "we are done with this. We're just going to find a rental" as we have school aged children and need to be settled by mid August. His response was "I'll have a definite loan commitment at the least on Monday, more than likely a clear to close."

I just do not believe him anymore. We have 4 children to think about and the things he has said don't make sense to us. We're told these things are "normal in the business." Like our loan sitting on someone's desk for a week? Is that normal?

Anyway, we're trying to determine whether we should wait until Monday or go for a rental property now. We don't have to sign for the rental immediately but they will pull our credit and if there is ANY chance at all of this loan going through, we don't want them to see another credit pull on our report.

ANY help, thoughts would be greatly appreciated at this time!
I suppose one short answer is: you should have cleared the collection before you went into contract.

As far as a loan simply sitting on someone's desk with no action for a week, companies work with many clients, and the consumer's inexplicable bloodlust for "the lowest rate" sometimes precludes adequate staffing, as mortgage companies are for-profit businesses and have to pay employees with the revenue from the mortgage loans that they sell and service.

Imperfect files result in imperfect processes. It would seem that the fact that you went into contract without clearing the collection, and then the hurdle that TransUnion placed in your way, both presented issues to your Loan Officer, who is likely working hard for you to turn your file into chicken salad. So, maybe lighten up on your lender, give them the opportunity to get you done on Monday, and then make your decision.
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Old 07-11-2015, 05:05 PM
 
15 posts, read 28,238 times
Reputation: 10
If we had known about the collection before hand, we would have. The broker pulled our credit twice in Feb and once in March. It didn't show up. We think the original debt stopped being reported and somewhere down the line it was sold thus popping up on the credit report in June. SURPRISE!

Thank you for your reply. I know the broker is working hard. This is only the 2nd time I've bought a house and I must have blocked all recollection of the first time because this is maddening.
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Old 07-11-2015, 05:50 PM
 
Location: Port Charlotte
3,926 posts, read 4,392,839 times
Reputation: 3395
Mortgage UW is a real PITA now thanks to the new rules from Washington. It went from 'fog a mirror' to 'you need to have a proctology exam' review of everything. We had to go to two different lenders to buy our latest home last year, even though we had enough cash on hand to PAY CASH.

File a complaint with that reporting bureau and they have 30 days to remove it.
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