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Suit Filed - Do I have a chance for Mortgage?


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I'll say yes, you have a good chance for obtaining a Mortgage loan.

Of course, Answer the Summons.

In the meantime, I would write a CMRRR Letter to their attorney and cc to

Crap 1 stating that the fraudulent debt is "outside of statute" and you are purchasing a home before long and really need this matter to settle quickly.

It cannot hurt to cc to the CA and CRAs as well. Just a suggestion !

Reason: Based upon my brother's experience, "Purchasing a home" seems to solve matters "quickly." As in "RUSH". We're talking big money damage$$$ if your mortgage loan is NOT approved or Approved at a much higher APR because of Cap 1 and their attorneys. They (Cap 1, Cap 1 attorneys, CRAs and/or CA) may not be willing to take that chance.

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I'll say yes, you have a good chance for obtaining a Mortgage loan.

Of course, Answer the Summons.

In the meantime, I would write a CMRRR Letter to their attorney and cc to

Crap 1 stating that the fraudulent debt is "outside of statute" and you are purchasing a home before long and really need this matter to settle quickly.

It cannot hurt to cc to the CA and CRAs as well. Just a suggestion !

Reason: Based upon my brother's experience, "Purchasing a home" seems to solve matters "quickly." As in "RUSH". We're talking big money damage$$$ if your mortgage loan is NOT approved or Approved at a much higher APR because of Cap 1 and their attorneys. They (Cap 1, Cap 1 attorneys, CRAs and/or CA) may not be willing to take that chance.

I haven't sold my house yet, but we will be making offer on another one this week with the contingency that I sell mine. I am also filing a MSJ on the Crap one suit since SOL has expired. I am filing on Tuesday. They have 30 days to reply to my motion. With that being said, I know I have 30 days that I still have to deal with this. If I don't sell my home within 30 days and my MSJ is granted, then I don't have to worry about anything. But, if my house is sold within 30 days, I don't want this suit to ruin my chances!

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Cap One served me with a summons last month. I am fighting it, but I know this could drag on for months. They should not be able to obtain a judgement since the SOL has expired on the account. My question is, while this is "going on" do I have a chance of obtaining a mortgage?

They should not be able to obtain a judgement if you raise the sol as an affirmative defense......however that does not obsolve you of the debt. If it is currently on your CR, it may very well remain till the end of the seven year reporting period. If you are this close (making an offer) in your transactions, you might think about contacting the Att and/or CapOne to settle. When your mortgage company pulls your CR, more likely than not if it is still there, they are going to want it taken care of.

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They should not be able to obtain a judgement if you raise the sol as an affirmative defense......however that does not obsolve you of the debt. If it is currently on your CR, it may very well remain till the end of the seven year reporting period. If you are this close (making an offer) in your transactions, you might think about contacting the Att and/or CapOne to settle. When your mortgage company pulls your CR, more likely than not if it is still there, they are going to want it taken care of.

I have a broker that is aware of the acct and he has a subprime lender that doesn't care about the old debt. At the time that I had contacted the broker, I had not been served. I just want to make sure that I should still be able to proceed with everything regardless of this suit. As I stated earlier, I feel sure this will be dismissed but it will be 30 days before that occurs.

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I have a broker that is aware of the acct and he has a subprime lender that doesn't care about the old debt. At the time that I had contacted the broker, I had not been served. I just want to make sure that I should still be able to proceed with everything regardless of this suit. As I stated earlier, I feel sure this will be dismissed but it will be 30 days before that occurs.

Most subprime lenders won't care about the old debt.

But it's worth waiting 30 days or 6 months to get this taken care of and avoid going with a subprime lender.

You'll save a ton of money in interest.

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You signed an initial Uniform Residential Loan Application (also called a 1003).

Page three of the 1003 has section VIII Declarations with some yes/no boxes.

Section VIII Declarations (d) asks "Are you a party to a lawsuit?"

There will be a final 1003 that you will need to sign at closing.

The certification above your signature on that page states:

"the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation that I have made on this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under Title 18, United States Code, Sec. 100, et seq"

Hopefully your Loan Officer has read Section IX 'Acknowledgement And Agreement' on page 3 of the 1003. Sadly, many LO's have never read it and encourage borrowers to lie.

I have personally known two people that have served time for loan fraud and a third that is beginning an 18 month sentence. They are all nice friendly people that everyone liked.

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You signed an initial Uniform Residential Loan Application (also called a 1003).

Page three of the 1003 has section VIII Declarations with some yes/no boxes.

Section VIII Declarations (d) asks "Are you a party to a lawsuit?"

There will be a final 1003 that you will need to sign at closing.

The certification above your signature on that page states:

"the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation that I have made on this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under Title 18, United States Code, Sec. 100, et seq"

Hopefully your Loan Officer has read Section IX 'Acknowledgement And Agreement' on page 3 of the 1003. Sadly, many LO's have never read it and encourage borrowers to lie.

I have personally known two people that have served time for loan fraud and a third that is beginning an 18 month sentence. They are all nice friendly people that everyone liked.

At the time that I had contacted the broker and got preapproval, I was not involved in the suit. This has hit us like a ton of bricks. This was the only negative thing on my report and knowing it was out of SOL, I didn't think it would be a big deal for us to go ahead and sell our house and get another one. I'm so frustrated right now!!! I'm going to contact my broker and let him know about it. When you change the answer to "yes" on the app, will this prevent us from getting a loan now?

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At the time that I had contacted the broker and got preapproval, I was not involved in the suit. This has hit us like a ton of bricks. This was the only negative thing on my report and knowing it was out of SOL, I didn't think it would be a big deal for us to go ahead and sell our house and get another one. I'm so frustrated right now!!! I'm going to contact my broker and let him know about it. When you change the answer to "yes" on the app, will this prevent us from getting a loan now?

It's called full disclosure...even though your Broker says "sure, no problem"....he/she is not underwriting the loan. When an institution lends money they want to make sure that you are free and clear of encumbrances....

My best advice.....try to settle this issue with the ATT and/or CapOne.....or delay your house plans till it is indeed resolved. It also is not fair to the seller whose house you are making an offer on.....they will be pulling their home off the market and who knows how long a suit with CapOne could drag on...I certainly would not bet on the 30 days that you are suggesting...

Don't mean to be harsh...it's reality

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I'm so frustrated right now!!! I'm going to contact my broker and let him know about it. When you change the answer to "yes" on the app, will this prevent us from getting a loan now?

Not necessarily, but if you call your broker and he/she says "oh don't worry about that, they'll never find out" then..

R-U-N!!!!!! Run fast, run far!!!

Ok, enough of the humor. Aussie has given good advice once again. I would also add that it is possible to get the loan done with that box checked 'yes' but you'd need a loan officer that will be your advocate with an understanding U/W.

If your LO tells you to lie then drop him/her and talk to Firstsource to get the loan done the right way.

By the way, that's good avice for anyone reading this post. Don't lie on a mortgage loan application.

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  • 2 weeks later...

Update

I talked with my broker and he contacted the lender. They stated that it wouldn't be a problem, I just needed to include a copy of the summons, my answer, my MSJ, etc. Well, we decided that it was best that we take the house off the market and wait until this passes. I would whether wait instead of having to answer "yes" on the app. It was a hard decision to take it off the market, but in the long run a wise one.

As a side note, the Cap 1 acct is off two of my reports and hopefully I can get it removed from the remaining one. I have also filed my MSJ. They have until the middle of March to answer. Then we should get a hearing. IF, (fingers crossed), we win and it falls off the last CR, then we won't need a sub-prime lender PERIOD!!

Please keep your fingers crossed for me!

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