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Old 11-04-2018, 08:12 AM
 
Location: near Fire Station 6
987 posts, read 435,683 times
Reputation: 841

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I made an error last August on the check I wrote for my monthly mortgage payment. I put $1628.72 but wrote out $1000.72 by error. The bank uses the written amount for checks.
Due to a cease and desist for another property, I did not find out until Spring of this year when I went to get my credit report to refinance. I filed a dispute with Credit Karma. Nothing happened. I hired a company to fix the errors. I signed a contract to pay $1000.00, I paid $250.00 upfront. They could not get Bank of America to remove 3 late months. I have 4 late payments on the mortgage, and they remain for 7 years, correct? This is the original mortgage from 2004.
The rate is at 4.875 now and the loan amount is $217K. I pay taxes and insurance independent of the mortgage, and my actual credit score is around 790.
For now, my strategy is paying extra to the principal between 500-1000 per month.

Any advice is appreciated!
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Old 11-04-2018, 02:26 PM
 
Location: on the wind
11,777 posts, read 5,403,516 times
Reputation: 38782
Not quite sure I understand...you didn't realize you had made the error on the checks for those months until a lot later? If you had called the lender immediately about the error maybe they could have kept it from ever becoming part of your record. Regardless of the underlying reason (writing out the check incorrectly), you did not pay the full mortgage for those months. You paid less than was due. It is now history. Why should anyone retroactively believe it was a simple error? Why the dispute with CC? They report history that your actions created. Why would you expect B of A to remove anything? You did not make the correct payments at the time.

Last edited by Parnassia; 11-04-2018 at 02:35 PM..
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Old 11-05-2018, 10:00 AM
 
3,806 posts, read 8,261,054 times
Reputation: 4944
Quote:
Originally Posted by lostsoul359 View Post
I made an error last August on the check I wrote for my monthly mortgage payment. I put $1628.72 but wrote out $1000.72 by error. The bank uses the written amount for checks.
Due to a cease and desist for another property?, I did not find out until Spring of this year when I went to get my credit report to refinance. I filed a dispute with Credit Karma There is nothing to dispute, the late payments are valid. Nothing happened. I hired a company to fix the errors. I signed a contract to pay $1000.00, I paid $250.00 upfront. They could not get Bank of America to remove 3 late months. I have 4 late payments on the mortgage, and they remain for 7 years, correct? Do you have four 30-day lates in a row? This is the original mortgage from 2004.
The rate is at 4.875 now and the loan amount is $217K. I pay taxes and insurance independent of the mortgage, and my actual credit score is around 790.
For now, my strategy is paying extra to the principal between 500-1000 per month.

Any advice is appreciated!
Lenders only look at the most recent 12 months of mortgage payments, if the lates are a "Rolling 30" meaning four 30's in a row. (One payment behind for four months)

With that score you could refinance as soon as you have a clear 12 month look-back window, but you have a small loan amount, meaning it would take a significantly lower rate for you to feel any benefit.

Rates are not currently available for that to happen.
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Old 12-24-2018, 08:53 PM
 
Location: near Fire Station 6
987 posts, read 435,683 times
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Quote:
Originally Posted by Pfhtex View Post
Lenders only look at the most recent 12 months of mortgage payments, if the lates are a "Rolling 30" meaning four 30's in a row. (One payment behind for four months)

With that score you could refinance as soon as you have a clear 12 month look-back window, but you have a small loan amount, meaning it would take a significantly lower rate for you to feel any benefit.

Rates are not currently available for that to happen.
Are you considering the fact that the loan product I currently have had since 2004 is an ARM? I was under the assumption that I will have to wait 7 years for those 4 lates to drop off my score, to qualify for a top interest rate with a credit score around 791...
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Old 12-26-2018, 10:27 AM
 
3,806 posts, read 8,261,054 times
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Quote:
Originally Posted by lostsoul359 View Post
Are you considering the fact that the loan product I currently have had since 2004 is an ARM? That doesn't matter. I was under the assumption that I will have to wait 7 years for those 4 lates to drop off my score, to qualify for a top interest rate with a credit score around 791...
If you had a perfect pay history and a 791 mid score and decent equity after the refinance (20% or more), you could get into 4.875% on a 30-year fixed. *BTW that is not available on an ARM, those rates are higher.

What months are showing late payments?
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Old 12-28-2018, 08:23 AM
 
Location: MID ATLANTIC
8,150 posts, read 20,011,634 times
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"I pay taxes and insurance independent of the mortgage, and my actual credit score is around 790."

Sorry, I am stuck on this sentence. Scores are more complex than one FICO score. Each bureau has their own scoring model, completely independent of the others. And then, each creditor decides who they will report to with the credit data. What are you referring to as your actual score? There is no such thing as a single score. Do you know your scores from each of the bureaus?

A couple more questions: do you have the canceled $1000 check In your possession? Do you have the canceled checks for the following 3 months? In other words, can you prove your story? And finally, is all other credit clean as a whistle? No other lates or collections? And then, the ever contant question of a portfolio lender, are there compensating factors? If you are throwing money at principal, are there decent reserves somewhere? ie, money in the bank or parked in a 401k (without loans)? Is your LTV lower than needed?

The fact this just happened in August, means the subsequent September, October and November (last month) are your delinquent dates. This is where the value of a portfolio lender shines. In the past year I have personally seen at least a dozen human errors get erased with the credit bureaus. I know that doesn't help you now, all the could of and should ofs, what you should have dones, don't help either. But back to portfolio lending - if, big if, you can prove your story with canceled checks, a portfolio lender would read your letter explaining what happened and review all of your scores and history.....and review comp factors, you could get a rate and term refi.

I do this for a living and pay my mortgage via billpay where I bank. I didn't open a monthly statement (or two, or three), but my billpay went out. I missed an escrow/payment increase. How did I find out? The collections department called. My mortgage had been sold to someone not so savy in mortgage servicing, and if my rate was not where it was, I would refi to get away from them (Stifel). Not because I messed up, but they were nasty to deal with.

Moral of my advice: document, document, document. Whether the rate difference would provide you what we call a net tangible benefit depends is iffy, even if it means getting out of an ARM. I do not think you will miss the boat, just the opposite. I believe we are going to see low rates for years to come.
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Old 12-28-2018, 08:32 AM
 
Location: Austin
7,205 posts, read 18,957,174 times
Reputation: 9808
Quote:
Originally Posted by lostsoul359 View Post
I filed a dispute with Credit Karma. Nothing happened.
Credit Karma is for "entertainment purposes only". You cannot dispute with them as they are not the ones reporting the bad credit. You need to dispute with the actual credit bureaus.
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Old 01-03-2019, 11:38 PM
 
Location: near Fire Station 6
987 posts, read 435,683 times
Reputation: 841
Quote:
Originally Posted by Pfhtex View Post
If you had a perfect pay history and a 791 mid score and decent equity after the refinance (20% or more), you could get into 4.875% on a 30-year fixed. *BTW that is not available on an ARM, those rates are higher.

What months are showing late payments?

August - December
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Old 01-04-2019, 09:53 AM
 
3,806 posts, read 8,261,054 times
Reputation: 4944
Quote:
Originally Posted by lostsoul359 View Post
August - December

If you mean August - December of 2017, then those lates no longer exist, in regard to mortgage qualification. They only matter if you went into pre-foreclosure.


*You were one payment behind for each of those months, right?
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Old 01-07-2019, 07:57 PM
 
Location: near Fire Station 6
987 posts, read 435,683 times
Reputation: 841
Quote:
Originally Posted by Pfhtex View Post
If you had a perfect pay history and a 791 mid score and decent equity after the refinance (20% or more), you could get into 4.875% on a 30-year fixed. *BTW that is not available on an ARM, those rates are higher.

What months are showing late payments?
The late months are Sept Oct Nov Dec of 2017 and January 2018. I had a broker pull my credit report in February 2018, that is when I was told to pay the $800.00 I owed from the 1 late payment which was just a check written out incorrectly, to stop the bleeding. So, I did.
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