applegirl Posted January 1, 2008 Report Share Posted January 1, 2008 My cousin and her husband have been in their home since late 1999. They stopped paying on several credit cards in early 2000. They are now past the 7 year and 180 day reporting period, and all of these items should be off their reports. (They are planning to pull them to make sure.) They would like to try for a refi on their home. Will the lender be able to see these old accounts? They don't want their current mortgage to be in jeopardy if the lender can see these past debts.Thanks,applegirl Link to comment Share on other sites More sharing options...
Ahntara Posted January 1, 2008 Report Share Posted January 1, 2008 No one but their specific lender can say...here's why:The same section of the FCRA (1681c, subsection 605) that establishes time limits on reporting of derogatory info also mentions exemptions. I'll leave it to you to read what those are. There is a sticky at the top of the page.Typically, lenders pull a tri-merge (or 3-n-1) that shows the last 7-10 years of credit info. But they MAY pull another type of report which shows more. Only they can say for sure. Link to comment Share on other sites More sharing options...
zfire Posted January 1, 2008 Report Share Posted January 1, 2008 If they are past the 7 year mark, and off your reports, though they maybe can see the information, they are probably not allowed to use it against you. Link to comment Share on other sites More sharing options...
Fozzle Posted January 2, 2008 Report Share Posted January 2, 2008 If they see they do see the derogs, which is possible, they will require a written explanation. Depending on the credit score and the loan-to-value, a lender isn't likely to give much weight to any derogs that happened over 7 years ago. Link to comment Share on other sites More sharing options...
LVMortgageMom Posted January 2, 2008 Report Share Posted January 2, 2008 Lenders aren't just concerned about your history of repaying your credit obligiations, they are also concerned about the existence of judgements on that outstanding debt. If it's not there snd they don't see it, then there is nothing to worry about. However, if for some reason it is still reporting, which is a reasl possibility. the lender not just simply disregard it. They will probably require some type of explanation, but they MAY require that some type of payment or payment arrangment be made. Link to comment Share on other sites More sharing options...
flacorps Posted January 2, 2008 Report Share Posted January 2, 2008 There is also the question of accuracy of the representations on the mortgage app. Just because it's (arguably) out of statute doesn't mean it's not subject to mandatory disclosure. Link to comment Share on other sites More sharing options...
applegirl Posted January 3, 2008 Author Report Share Posted January 3, 2008 Thank you all for your replies. I will pass the information along. It is unfortunate that they will not be able to refi, but at least they already have a home, and the mortgage is in good standing. Link to comment Share on other sites More sharing options...
flacorps Posted January 6, 2008 Report Share Posted January 6, 2008 They should use a broker who specializes in B/C situations and they should be upfront with him or her. Link to comment Share on other sites More sharing options...
firstsource Posted January 11, 2008 Report Share Posted January 11, 2008 I don't think that they will have a problem refinancing. I have seen automated approvals on conforming/conventional loans that left 5K in collections/charge offs in the "don't need to be paid" section.The lower the LTV (percentage of the value that they want to borrow), the less of a problem it is. But since you are in Texas that is probably not an issue.Charles Link to comment Share on other sites More sharing options...
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