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Applying for a mortgage when credit files are frozen?

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Currently all three (EX, EQ, TU) of my credit files are frozen. I have a total of 6 negative tradelines that will continue to stay on these reports until 2012. I currently have a small ($35K) mortgage that I've never been late on in the 10 years I've had it.

I would like to sell my current home, pay off my old mortgage, and purchase a new home that would require a new mortgage of about $150,000. I'm assuming I would have to first lift the freeze from these reports in order to apply for a mortgage, but before I do this, I wonder if I would be turned down due to those negative tradelines? Could anyone provide any advisement, it would be very appreciated.

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If you enacted the freeze yourself, all you have to do is call the credit reporting agency - you don't have to remove the freeze, all you need is to tell them you are going to be mortgage shopping and to temporarily lift the freeze for 2 weeks. You usually don't want to shop outside of 14 days, all inquiries made in 14 days are counted as just one hard hit against the credit score, in addition all inquiries are suppressed from affecting the score for 30 days.

If you need mortgage lender access after the 14 days, maybe just get a pin number from the credit reporting agency for that specific lender to access. This will make sure you are still protected.

I could not say on the ability to get approved, it all depends on the types of derogatory accounts you have and their status as well as any outstanding balances still owed.

Lenders are usually concerned with the most recent two years of activity.

If you want to know ahead of time, you can print out a copy of your credit reports and scores, and take them to the lender and show them what you have. Ask if they think you can get approved with what you show them. If they say no - you will have saved yourself an inquiry. If they say yes, then they need your approval to pull a credit report of their own.

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Currently all three (EX, EQ, TU) of my credit files are frozen. I have a total of 6 negative trade lines that will continue to stay on these reports until 2012. I currently have a small ($35K) mortgage that I've never been late on in the 10 years I've had it.

I would like to sell my current home, pay off my old mortgage, and purchase a new home that would require a new mortgage of about $150,000. I'm assuming I would have to first lift the freeze from these reports in order to apply for a mortgage, but before I do this, I wonder if I would be turned down due to those negative trade lines? Could anyone provide any advisement, it would be very appreciated.

I wrote loans as a loan officer for several years - you will have to satisfy those debts before getting your new mortgage. It can be deemed if you do not pay them, these debts can go into collections, resulting in bigger debt problems.

.

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If you enacted the freeze yourself, all you have to do is call the credit reporting agency - you don't have to remove the freeze, all you need is to tell them you are going to be mortgage shopping and to temporarily lift the freeze for 2 weeks. You usually don't want to shop outside of 14 days, all inquiries made in 14 days are counted as just one hard hit against the credit score, in addition all inquiries are suppressed from affecting the score for 30 days.

If you need mortgage lender access after the 14 days, maybe just get a pin number from the credit reporting agency for that specific lender to access. This will make sure you are still protected.

I could not say on the ability to get approved, it all depends on the types of derogatory accounts you have and their status as well as any outstanding balances still owed.

Lenders are usually concerned with the most recent two years of activity.

If you want to know ahead of time, you can print out a copy of your credit reports and scores, and take them to the lender and show them what you have. Ask if they think you can get approved with what you show them. If they say no - you will have saved yourself an inquiry. If they say yes, then they need your approval to pull a credit report of their own.

Excellent advice! Thanks, kb9tbq.:)

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I wrote loans as a loan officer for several years - you will have to satisfy those debts before getting your new mortgage. It can be deemed if you do not pay them, these debts can go into collections, resulting in bigger debt problems.

.

As I mentioned, the debts are old, and the statute of limitations will expire on all of them next year, 2011. However, the credit reporting bureau's will continue to report them until 2012. All of these debts have been disputed by me, and all state: "Account information disputed by consumer. (Meets requirement of the Fair Credit Reporting Act.)

I have been negligent in moving forward, and attempting to sue the JDB's who own these debts, since not one of them have been bothering me or trying to sue me. I guess I've let sleeping dogs lie.

While I know it would be easier for me to wait another 2 years, there are conditions in my life that make it necessary for me to move to a larger home. While I could of course rent, I would much rather purchase another home, thus I will need a mortgage. Given the information I have provided, would a loan officer consider approving me?

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I would say it would be in your best interest to wait out the additional year for the statute of limitations to expire.

How much debt are we talking here? Is it something you could manage to pay if you work up the collection agencies on these accounts.

If you do you might offer payment for deletion - so it helps and not hurts the credit score.

What exact types of delinquent debt are these? Credit Cards, Car loans, utilities, medical, student loans, installment loans.

There is additional information I can provide if you could give more information, also how much are we talking here?

You said you are going for a mortgage, if you just pay and let the collection agencies update the credit report, it could drop the score and drop you out of approval range, it is so important to get the item deleted if you pay.

If there are any judgments on the credit report, there is no way a loan officer will over look it they will require it to be paid, cause they don't want a judgment being converted to a lien. But if it is an old collection that is out side of the statute of limitations, you might be able to plead your case that it can't be sued, on. Well that is not quite right it can be sued on, but you can dispute with the judge that it is time barred. You will need back copies of your credit report, and or back statements, collection letters that show then the account initially defaulted. Other wise the collection agency might get a judgment on a technicality.

If you get the credit report updated, it is your right to notify the credit reporting agency to send a copy of the results to you, as well as any creditor dating 6 months back having accessed the credit report.

Also you can tell the credit reporting agency that you dispute regards a mortgage and you would like them to move up the investigation at least by 2 weeks, they can rush when you ask them and notify them of the pending application for a mortgage loan.

In fact they can move faster than that, but you would have to find a company that handles rapid rescoring, but in that case you have to have a letter first from the lender of their agreement to delete, otherwise you don't wan to use rapid rescoring as a actual dispute - hoping the the best, it is not meant for that. Because it is too costly for that.

I can't remember the cost of that service. Your mortgage company might now how does that.

We really do need some more information from you before we can say if one way or the other that you have a chance.

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