Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


Sign in to follow this  

How can you remove late mortgage payments from your credit?

The last post in this topic was posted 2708 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Recommended Posts


My GF was dealing with a credit repair company so I don't know what they were sending out for the past year that did NOT work. If GW is what they do initially, I don't know what they've done throughout the year. Any suggestions where I should help her start from? Do we have to throw jabs or is there anyway we can go for the KO?

Edited by steelcity

Share this post


Link to post
Share on other sites

My GF was dealing with a credit repair company so I don't know what they were sending out for the past year that did NOT work. If GW is what they do initially, I don't know what they've done throughout the year. Any suggestions where I should help her start from? Do we have to throw jabs or is there anyway we can go for the KO?

Try and get the letters they sent from the credit repair company. Hopefully gf canned them. If lates are all that are on her report then it should be pretty easy to hopefully try and GW the mortgage company.

 

Look for exectives at the mortgage company and start sending emails to one or two. I usually go for VP of Customer Service if one is avaliable if not just usually VP. Rarely have I actually gone to the Ceo/President, maybe once or twice.

 

In Google just type Exectives of Mortgage company and you should get a press page or some kind of page at the company that may list exectives. Email address format are usually firstnamelastname@company.com or firstint.lastname@company.com

Share this post


Link to post
Share on other sites

 

My GF was dealing with a credit repair company so I don't know what they were sending out for the past year that did NOT work. If GW is what they do initially, I don't know what they've done throughout the year. Any suggestions where I should help her start from? Do we have to throw jabs or is there anyway we can go for the KO?

Try and get the letters they sent from the credit repair company. Hopefully gf canned them. If lates are all that are on her report then it should be pretty easy to hopefully try and GW the mortgage company.

 

Look for exectives at the mortgage company and start sending emails to one or two. I usually go for VP of Customer Service if one is avaliable if not just usually VP. Rarely have I actually gone to the Ceo/President, maybe once or twice.

 

In Google just type Exectives of Mortgage company and you should get a press page or some kind of page at the company that may list exectives. Email address format are usually firstnamelastname@company.com or firstint.lastname@company.com

Ok...

 

To be honest, her file is VERY clean aside of the late payments that posted from the mortgage. The original loan was from Countrywide which later turned into Bank of America and just recently she got a letter stating that the mortgage is now owned by either Nation Start or National Star. So I don't know where to begin.

Share this post


Link to post
Share on other sites

I'd start w/ who ever is reporting the lates. I don't know how mortgage TL's are after it the account gets sold. If it's anything like Student loans the orginal TL will still be there w/ the lates, then the new company's Tl will be there. (if it's anything like student loan TL's) maybe someone with more knowledge in that area can chime in.

Share this post


Link to post
Share on other sites

 

 

My GF was dealing with a credit repair company so I don't know what they were sending out for the past year that did NOT work. If GW is what they do initially, I don't know what they've done throughout the year. Any suggestions where I should help her start from? Do we have to throw jabs or is there anyway we can go for the KO?

Try and get the letters they sent from the credit repair company. Hopefully gf canned them. If lates are all that are on her report then it should be pretty easy to hopefully try and GW the mortgage company.

 

Look for exectives at the mortgage company and start sending emails to one or two. I usually go for VP of Customer Service if one is avaliable if not just usually VP. Rarely have I actually gone to the Ceo/President, maybe once or twice.

 

In Google just type Exectives of Mortgage company and you should get a press page or some kind of page at the company that may list exectives. Email address format are usually firstnamelastname@company.com or firstint.lastname@company.com

Ok...

 

To be honest, her file is VERY clean aside of the late payments that posted from the mortgage. The original loan was from Countrywide which later turned into Bank of America and just recently she got a letter stating that the mortgage is now owned by either Nation Start or National Star. So I don't know where to begin.

 

Bad news: It's Nationstar and she's pretty much f@cked on that front! Nationstar is the worst mortgage servicer(and now the largest non bank servicer in the country) and she has a whole new set of issues to deal with. She now has to worry about her mortgage servicer failing to pay the property taxes on her property with the escrowed money for that purpose(and getting letters from the city for unpaid property taxes). Or she has to worry about them "not noticing" an on time payment until a few days after the due date so they can hit her with a late payment penalty and ding her credit.

 

You need to understand that Nationstar has a unique business model as a mortgage servicer. Mortgage servicing(as opposed to owning mortgages of which not even BofA actually owned the mortgages themselves--the right to receive payments are paid to investors in agency mortgage backed securities(the investor probably the Federal Reserve at the moment) collects a tiny portion of the interest payments for the job of collecting, analyzing, and remitting the mortgage payments onto investors. The primary risk to them is what is known as pre-payment rates(the rate of which borrowers sell or refi out of a mortgage with them). It is largely believed(and makes sense) that they intentionally ding your credit so that it's harder for you to refinance away from them.

 

Just Google Nationstar Complaints and you'll see for yourself with dozens of new complaints online every single day. If your GF can refinance away from Nationstar as soon as possible I would. I recommend Cashcall.com, Provident.com, BoxHomeLoans, AIM loans, Roundpoint mortgage, or PenFed for the best rate and closing costs. Cashcall will match any of the best rates out there and pay for the appraisal up front.

 

If she's going to have any chance getting those late payments off her credit report she'll probably have a better chance after she's refi'ed out of Nationstar, but even then it's an extremely thin chance of having anything positive come out of trying to get those lates off with a firm like Nationstar.

Share this post


Link to post
Share on other sites

Wow man. That's not good. I know what you mean though. A good friend of mine was explaining to me that the banks never really "own" your mortgage, it's a third party.

 

I appreciate your info Denny. Here's the situation with my GF:

 

My GF and her mom are linked to the house and they both want out. The lates occurred 2 years ago when my GF's mom had a health issue and ended up missing work for 2 months (and 2 payments on the house). My GF had her share of the money for the mortgage back then but her mom didn't. Now, what had happened was they went to Bank of America and spoke with someone there to explain to the bank of their upcoming situation. The person from the bank told them not to worry and told them that they can just throw the 2 payments that they'll miss to the end of their mortgage.

 

So they left the bank and put their guard down. Six months ago my GF seen that her scores dropped 100 points from those late payments. Other than that she's always had great credit. Now, her and her mom are looking for an exit strategy and don't know how to go about it without taking a severe blow to their credit (especially my GF's cause the mom doesn't really care for her own). So they're leaning towards a short sale or an outright sale. Their ultimate dream is to have the mom refinance it and that way my GF can just walk away without worrying of her credit getting screwed. Any suggestions?

Share this post


Link to post
Share on other sites

Wow man. That's not good. I know what you mean though. A good friend of mine was explaining to me that the banks never really "own" your mortgage, it's a third party.

 

I appreciate your info Denny. Here's the situation with my GF:

 

My GF and her mom are linked to the house and they both want out. The lates occurred 2 years ago when my GF's mom had a health issue and ended up missing work for 2 months (and 2 payments on the house). My GF had her share of the money for the mortgage back then but her mom didn't. Now, what had happened was they went to Bank of America and spoke with someone there to explain to the bank of their upcoming situation. The person from the bank told them not to worry and told them that they can just throw the 2 payments that they'll miss to the end of their mortgage.

 

So they left the bank and put their guard down. Six months ago my GF seen that her scores dropped 100 points from those late payments. Other than that she's always had great credit. Now, her and her mom are looking for an exit strategy and don't know how to go about it without taking a severe blow to their credit (especially my GF's cause the mom doesn't really care for her own). So they're leaning towards a short sale or an outright sale. Their ultimate dream is to have the mom refinance it and that way my GF can just walk away without worrying of her credit getting screwed. Any suggestions?

 

Good luck on the short sale(if you decide to do that) with Nationstar. I'm aware of another person going through a short sale who just found out the servicing right on their mortgage got sold from BofA to Nationstar. From what we're reading online among short sale realtors dealing with them it's not pretty. It could easily take more than a year to get out from under that thing assuming you veraciously badgered the Nationstar people and the negotiator that get's assigned to your case. My guess is that odds are they would drag their feet enough that she would end up getting foreclosed upon while trying to get the place short sold.

 

Technically speaking there are new regulations out that state that a borrower should not be forced into going to delinquent to proceed with a short sale, but respectable banks servicing mortgages aren't even following through with them so without an attorney threatening to sue Nationstar if they don't treat your file's eligibility of getting a short sale while remaining current on a mortgage the same as someone who is delinquent I doubt they'll let you proceed with short sale while current. The regulations that I'm speaking of were issued by the FHFA(not FHA).

 

 

How underwater is she? If it's not much it likely makes sense to either:

1) Proceed with refinance through a different lender and mom only on the mortgage, kick in the extra money to cover the difference, and then put it all in Mom's hands. If I was the GF I would be willing to pay a decent chunk of change to the mom to be rid of the whole situation. If her time is actually worth anything reasonable dealing with Nationstar in something like a short sale is basically guaranteed to bleed her of thousands of dollars of her own time and even then it's not guaranteed to work(plus the credit gets damaged even more--although that's not the end of the world).

2) Proceed with refinance through a different lender together(because mom can't qualify on her own), kick in the extra money to cover the difference, and then put it on the market for sale.

3) List it for sale with your current mortgage from Nationstar and just hope they don't screw up anything that will kill the deal like forgetting to pay your property taxes with the escrowed payments made to them for that purpose. Then when you find a buyer kick in the difference in cash between the offer price and the mortgage balance to rid yourselves of the situation and keep the rest of her credit in tact.

 

And if it is a lot:

4) Find the best short sale realtor in town, and I'm not kidding. Get numerous referrals and interview numerous ones and make sure that they specialize in short sales. Once you're getting a lot of related professionals naming the same guy to go to for short sales, and he knows his stuff when you meet with him then you've got the person you want to work with. You also want to make sure that they're okay with you making calls and sending emails along side of him to expedite things. ***Read a ton online about not only the short sale process, but dealing with Nationstar*** and their short sale software Equator. If you and you're realtor are more on top of your $hit than 99% of those that work with Nationstar than I hope you'd be fine, but if she's just going to sit back and do nothing while a lazy realtor sends one piece of paper over there every couple of weeks then she should just realize that odds are her attempt at a short sale will probably go to foreclose and she wont be able to get another conventional mortgage(FHA might be earlier) for likely 7 years. If that seems like a b!tch to deal with then just kick in the difference on the mortgage on a refi or a straight up sale.

 

 

As to trying to get the lates removed?

1) Get out from under a mortgage with Nationstar and after a goodwill letter threaten to sue them? About what I don't know because your GF was late on that mortgage so I don't what magic wand you can wave to make them go away.

2) At the end of the day it shouldn't be the end of the world. You say it cost her 100 points. My guess is that she probably had a very high credit score before didn't she? ~800 territory? I fail to see how a couple of lates could take her from 700 to 600 still after 2 years(800 to 700 sure, but that's different). Keep in mind that most great lenders will issue *best prime rate* at anything over 740. In the lower 700s it's a difference of like .10% a year. I wouldn't worry about it that much. It will come back on its own.

Edited by denny123

Share this post


Link to post
Share on other sites

My mortgage was also with BOA, before they sold it to M&T. BOA only reported for the time they serviced it. M&T is reporting from the time they took it.... On my Tri-Merge Mortgage credit report (I'm in the middle of a refi), BOA's portion of my payment history, has a note stating "TRANSFERRED TO ANOTHER LENDER; CONVENTIONAL REAL ESTATE LOAN, INCLUDING PURCHASE MONEY."

 

I don't know if your GF's current servicer is reporting the lates, but I'm thinking they're not reporting her payment history with BOA. So your GF will probably have to deal with BOA, about getting the lates removed...

 

BTW, wouldn't it just be easier if your GF just pulls her credit report to see who she may need to deal with? One other thing ... getting the lates removed might be as easy as just disputing it as never late. Years ago, my ex-GF disputed a couple lates as never late, with the CRAs, and it was updated to never late... Those lates were 2 or 3 years old, so the creditor was probably just being lazy, about looking up the records, and didn't respond to the dispute...

Edited by crabjoe

Share this post


Link to post
Share on other sites

My mortgage was also with BOA, before they sold it to M&T. BOA only reported for the time they serviced it. M&T is reporting from the time they took it.... On my Tri-Merge Mortgage credit report (I'm in the middle of a refi), BOA's portion of my payment history, has a note stating "TRANSFERRED TO ANOTHER LENDER; CONVENTIONAL REAL ESTATE LOAN, INCLUDING PURCHASE MONEY."

 

I don't know if your GF's current servicer is reporting the lates, but I'm thinking they're not reporting her payment history with BOA. So your GF will probably have to deal with BOA, about getting the lates removed...

 

BTW, wouldn't it just be easier if your GF just pulls her credit report to see who she may need to deal with? One other thing ... getting the lates removed might be as easy as just disputing it as never late. Years ago, my ex-GF disputed a couple lates as never late, with the CRAs, and it was updated to never late... Those lates were 2 or 3 years old, so the creditor was probably just being lazy, about looking up the records, and didn't respond to the dispute...

 

Bold: If that is true that is good news for the OPs GF. I would rather deal with BofA(as bad as they are) than deal with Nationstar.

 

I guess disputing that with the CRAs is maybe worth a shot, but all it takes is the lender to verify when the CRAs request the information for that not to work. Also, it is dishonest since the GF was actually late. You dispute that and you're lying to a credit reporting agency. At least when you send requests demanding proof or demanding verification that each of these specific details are 100% correct or remove lates you're at least not deliberately lying to the CRA(or at least it's in more of a grey area).

 

Plus generally speaking it's been pretty well established that making requests that aren't lies are usually more effective anyway.

Edited by denny123

Share this post


Link to post
Share on other sites

My mortgage was also with BOA, before they sold it to M&T. BOA only reported for the time they serviced it. M&T is reporting from the time they took it.... On my Tri-Merge Mortgage credit report (I'm in the middle of a refi), BOA's portion of my payment history, has a note stating "TRANSFERRED TO ANOTHER LENDER; CONVENTIONAL REAL ESTATE LOAN, INCLUDING PURCHASE MONEY."

 

I don't know if your GF's current servicer is reporting the lates, but I'm thinking they're not reporting her payment history with BOA. So your GF will probably have to deal with BOA, about getting the lates removed...

 

BTW, wouldn't it just be easier if your GF just pulls her credit report to see who she may need to deal with? One other thing ... getting the lates removed might be as easy as just disputing it as never late. Years ago, my ex-GF disputed a couple lates as never late, with the CRAs, and it was updated to never late... Those lates were 2 or 3 years old, so the creditor was probably just being lazy, about looking up the records, and didn't respond to the dispute...

Great point there crabjoe! It's not a bad idea to just say she was never late.

 

Any specific type of letter that you know of that I can have her send? or a certain way to dispute this?

 

As for this Nationstar company........she JUST got the letter from them last week that they'll be the new servicer for her loan.

Share this post


Link to post
Share on other sites

 

My mortgage was also with BOA, before they sold it to M&T. BOA only reported for the time they serviced it. M&T is reporting from the time they took it.... On my Tri-Merge Mortgage credit report (I'm in the middle of a refi), BOA's portion of my payment history, has a note stating "TRANSFERRED TO ANOTHER LENDER; CONVENTIONAL REAL ESTATE LOAN, INCLUDING PURCHASE MONEY."

 

I don't know if your GF's current servicer is reporting the lates, but I'm thinking they're not reporting her payment history with BOA. So your GF will probably have to deal with BOA, about getting the lates removed...

 

BTW, wouldn't it just be easier if your GF just pulls her credit report to see who she may need to deal with? One other thing ... getting the lates removed might be as easy as just disputing it as never late. Years ago, my ex-GF disputed a couple lates as never late, with the CRAs, and it was updated to never late... Those lates were 2 or 3 years old, so the creditor was probably just being lazy, about looking up the records, and didn't respond to the dispute...

 

Bold: If that is true that is good news for the OPs GF. I would rather deal with BofA(as bad as they are) than deal with Nationstar.

 

I guess disputing that with the CRAs is maybe worth a shot, but all it takes is the lender to verify when the CRAs request the information for that not to work. Also, it is dishonest since the GF was actually late. You dispute that and you're lying to a credit reporting agency. At least when you send requests demanding proof or demanding verification that each of these specific details are 100% correct or remove lates you're at least not deliberately lying to the CRA(or at least it's in more of a grey area).

 

Plus generally speaking it's been pretty well established that making requests that aren't lies are usually more effective anyway.

That's the least of the worries. You want to talk about lying? how about the guy at the bank that told them not to worry if they missed 2 payments when her mom was going in for her surgery. He made them feel comfortable that the payment would be tacked on to the end of their mortgage. He forgot to mention the "........oh! and by the way, we will report it as 2 late payments on your CR's." My GF had her half of the mortgage. Her mom was out of work and couldn't come up with the other half of the money for those 2 months.

 

And we talk about it all the time too. If we knew this was going to be the case, I would've even given her the other half of the money for those 2 months to avoid a situation like this one now.

Share this post


Link to post
Share on other sites

 

Wow man. That's not good. I know what you mean though. A good friend of mine was explaining to me that the banks never really "own" your mortgage, it's a third party.

 

I appreciate your info Denny. Here's the situation with my GF:

 

My GF and her mom are linked to the house and they both want out. The lates occurred 2 years ago when my GF's mom had a health issue and ended up missing work for 2 months (and 2 payments on the house). My GF had her share of the money for the mortgage back then but her mom didn't. Now, what had happened was they went to Bank of America and spoke with someone there to explain to the bank of their upcoming situation. The person from the bank told them not to worry and told them that they can just throw the 2 payments that they'll miss to the end of their mortgage.

 

So they left the bank and put their guard down. Six months ago my GF seen that her scores dropped 100 points from those late payments. Other than that she's always had great credit. Now, her and her mom are looking for an exit strategy and don't know how to go about it without taking a severe blow to their credit (especially my GF's cause the mom doesn't really care for her own). So they're leaning towards a short sale or an outright sale. Their ultimate dream is to have the mom refinance it and that way my GF can just walk away without worrying of her credit getting screwed. Any suggestions?

 

Good luck on the short sale(if you decide to do that) with Nationstar. I'm aware of another person going through a short sale who just found out the servicing right on their mortgage got sold from BofA to Nationstar. From what we're reading online among short sale realtors dealing with them it's not pretty. It could easily take more than a year to get out from under that thing assuming you veraciously badgered the Nationstar people and the negotiator that get's assigned to your case. My guess is that odds are they would drag their feet enough that she would end up getting foreclosed upon while trying to get the place short sold.

 

Technically speaking there are new regulations out that state that a borrower should not be forced into going to delinquent to proceed with a short sale, but respectable banks servicing mortgages aren't even following through with them so without an attorney threatening to sue Nationstar if they don't treat your file's eligibility of getting a short sale while remaining current on a mortgage the same as someone who is delinquent I doubt they'll let you proceed with short sale while current. The regulations that I'm speaking of were issued by the FHFA(not FHA).

 

 

How underwater is she? If it's not much it likely makes sense to either:

1) Proceed with refinance through a different lender and mom only on the mortgage, kick in the extra money to cover the difference, and then put it all in Mom's hands. If I was the GF I would be willing to pay a decent chunk of change to the mom to be rid of the whole situation. If her time is actually worth anything reasonable dealing with Nationstar in something like a short sale is basically guaranteed to bleed her of thousands of dollars of her own time and even then it's not guaranteed to work(plus the credit gets damaged even more--although that's not the end of the world).

2) Proceed with refinance through a different lender together(because mom can't qualify on her own), kick in the extra money to cover the difference, and then put it on the market for sale.

3) List it for sale with your current mortgage from Nationstar and just hope they don't screw up anything that will kill the deal like forgetting to pay your property taxes with the escrowed payments made to them for that purpose. Then when you find a buyer kick in the difference in cash between the offer price and the mortgage balance to rid yourselves of the situation and keep the rest of her credit in tact.

 

And if it is a lot:

4) Find the best short sale realtor in town, and I'm not kidding. Get numerous referrals and interview numerous ones and make sure that they specialize in short sales. Once you're getting a lot of related professionals naming the same guy to go to for short sales, and he knows his stuff when you meet with him then you've got the person you want to work with. You also want to make sure that they're okay with you making calls and sending emails along side of him to expedite things. ***Read a ton online about not only the short sale process, but dealing with Nationstar*** and their short sale software Equator. If you and you're realtor are more on top of your $hit than 99% of those that work with Nationstar than I hope you'd be fine, but if she's just going to sit back and do nothing while a lazy realtor sends one piece of paper over there every couple of weeks then she should just realize that odds are her attempt at a short sale will probably go to foreclose and she wont be able to get another conventional mortgage(FHA might be earlier) for likely 7 years. If that seems like a b!tch to deal with then just kick in the difference on the mortgage on a refi or a straight up sale.

 

 

As to trying to get the lates removed?

1) Get out from under a mortgage with Nationstar and after a goodwill letter threaten to sue them? About what I don't know because your GF was late on that mortgage so I don't what magic wand you can wave to make them go away.

2) At the end of the day it shouldn't be the end of the world. You say it cost her 100 points. My guess is that she probably had a very high credit score before didn't she? ~800 territory? I fail to see how a couple of lates could take her from 700 to 600 still after 2 years(800 to 700 sure, but that's different). Keep in mind that most great lenders will issue *best prime rate* at anything over 740. In the lower 700s it's a difference of like .10% a year. I wouldn't worry about it that much. It will come back on its own.

Nationstar is the new servicer. She JUST got the letter one week ago from them that they'll be the new servicer for her mortgage. Even this month she had paid B of A for her mortgage. So who would this GW letter go to?

 

I doubt her scores were in the 800's. Low to mid 700's for sure though. And it's funny because we never intended to look at her credit because she has a car loan, mortgage, 6-7 cc's and you say to yourself "everything is just fine!"

 

Up until I needed an AU a year ago...I said to myself, "what IF!!! her credit isn't as good as I expect and it screws me rather than helps me?" So sure enough I pulled her file a year ago....and she was at 564, 574, 584!!!!!!! The late payments happened a year prior to when we looked up her scores, so they could've been even lower. The utilization was 75% too (let's be honest here). Either way though, three months ago she was at 603, 606, 618 AND!!! Since then she knocked out 2 store cards she owed AND she just made a massive payment a few days ago to 2 of her cc's (about $4k)...All this just brought her utilization down to 20% compared to 50-60% a few months ago, so I know she's going to get a nice boost in her scores next month. Only negatives now are the 2 lates and I need some advice to help her with that.

 

It sucks because she's a straight arrow. She's been making perfect payments for a decade with any bill she's ever had. Then she got these 2 lates and messed up years of payment history, overnight. She's thought of not paying the mortgage and doing a BK. I got mad at her cause I don't feel her issue is bad enough. If you do a BK, make sure it's worth it. Don't do it for $10-15k in cc's. You know?

 

But anyway.....I did look at Cash Call like you said. Seems like a good servicer. But I also have a good person for short sales. Her mom taking over the payment alone would be the best but she doesn't qualify. Everything is day to day for now. Thanks for putting another option on the table and informing me of Nationstar. For now, I'd like to get her credit back to where it was by getting those lates off. Thanks again

Edited by steelcity

Share this post


Link to post
Share on other sites

From what I remember, doing a dispute with the CRAs doesn't require any letter. All one needs to do is dispute the tradeline as Never Late.. It's then up to the creditor to respond back to the CRAs with proof that it was late. If they chose to not respond or, if you get lucky and they might respond never late, the reports get updated.

 

BTW, I don't see how this is any worse the requesting DV, when someone knows the debt/reporting is legit.

Share this post


Link to post
Share on other sites

I will admit that I haven't read every word of this lengthy post, but what I WILL say is that when the servicing for my mortgage (which was originated by Countrywide, which became B of A) was sold to Green Tree Servicing I saw all kinds of horror stories online about payments that were held for days being applied, payments not processed properly, angry calls from them when a payment was one day late (or even not yet due). I experienced no issues despite their reputation.

 

Of course, I made every payment on time and the mortgage was eventually paid off with a simple refi... but still. I think it would be an exception if a servicer treats you differently than you treat them. No one adds extra staff to be difficult with borrowers, and no matter what, you are less expensive to them if you just pay on time and leave them alone. :)

Edited by cv91915

Share this post


Link to post
Share on other sites

 

 

Wow man. That's not good. I know what you mean though. A good friend of mine was explaining to me that the banks never really "own" your mortgage, it's a third party.

 

I appreciate your info Denny. Here's the situation with my GF:

 

My GF and her mom are linked to the house and they both want out. The lates occurred 2 years ago when my GF's mom had a health issue and ended up missing work for 2 months (and 2 payments on the house). My GF had her share of the money for the mortgage back then but her mom didn't. Now, what had happened was they went to Bank of America and spoke with someone there to explain to the bank of their upcoming situation. The person from the bank told them not to worry and told them that they can just throw the 2 payments that they'll miss to the end of their mortgage.

 

So they left the bank and put their guard down. Six months ago my GF seen that her scores dropped 100 points from those late payments. Other than that she's always had great credit. Now, her and her mom are looking for an exit strategy and don't know how to go about it without taking a severe blow to their credit (especially my GF's cause the mom doesn't really care for her own). So they're leaning towards a short sale or an outright sale. Their ultimate dream is to have the mom refinance it and that way my GF can just walk away without worrying of her credit getting screwed. Any suggestions?

 

Good luck on the short sale(if you decide to do that) with Nationstar. I'm aware of another person going through a short sale who just found out the servicing right on their mortgage got sold from BofA to Nationstar. From what we're reading online among short sale realtors dealing with them it's not pretty. It could easily take more than a year to get out from under that thing assuming you veraciously badgered the Nationstar people and the negotiator that get's assigned to your case. My guess is that odds are they would drag their feet enough that she would end up getting foreclosed upon while trying to get the place short sold.

 

Technically speaking there are new regulations out that state that a borrower should not be forced into going to delinquent to proceed with a short sale, but respectable banks servicing mortgages aren't even following through with them so without an attorney threatening to sue Nationstar if they don't treat your file's eligibility of getting a short sale while remaining current on a mortgage the same as someone who is delinquent I doubt they'll let you proceed with short sale while current. The regulations that I'm speaking of were issued by the FHFA(not FHA).

 

 

How underwater is she? If it's not much it likely makes sense to either:

1) Proceed with refinance through a different lender and mom only on the mortgage, kick in the extra money to cover the difference, and then put it all in Mom's hands. If I was the GF I would be willing to pay a decent chunk of change to the mom to be rid of the whole situation. If her time is actually worth anything reasonable dealing with Nationstar in something like a short sale is basically guaranteed to bleed her of thousands of dollars of her own time and even then it's not guaranteed to work(plus the credit gets damaged even more--although that's not the end of the world).

2) Proceed with refinance through a different lender together(because mom can't qualify on her own), kick in the extra money to cover the difference, and then put it on the market for sale.

3) List it for sale with your current mortgage from Nationstar and just hope they don't screw up anything that will kill the deal like forgetting to pay your property taxes with the escrowed payments made to them for that purpose. Then when you find a buyer kick in the difference in cash between the offer price and the mortgage balance to rid yourselves of the situation and keep the rest of her credit in tact.

 

And if it is a lot:

4) Find the best short sale realtor in town, and I'm not kidding. Get numerous referrals and interview numerous ones and make sure that they specialize in short sales. Once you're getting a lot of related professionals naming the same guy to go to for short sales, and he knows his stuff when you meet with him then you've got the person you want to work with. You also want to make sure that they're okay with you making calls and sending emails along side of him to expedite things. ***Read a ton online about not only the short sale process, but dealing with Nationstar*** and their short sale software Equator. If you and you're realtor are more on top of your $hit than 99% of those that work with Nationstar than I hope you'd be fine, but if she's just going to sit back and do nothing while a lazy realtor sends one piece of paper over there every couple of weeks then she should just realize that odds are her attempt at a short sale will probably go to foreclose and she wont be able to get another conventional mortgage(FHA might be earlier) for likely 7 years. If that seems like a b!tch to deal with then just kick in the difference on the mortgage on a refi or a straight up sale.

 

 

As to trying to get the lates removed?

1) Get out from under a mortgage with Nationstar and after a goodwill letter threaten to sue them? About what I don't know because your GF was late on that mortgage so I don't what magic wand you can wave to make them go away.

2) At the end of the day it shouldn't be the end of the world. You say it cost her 100 points. My guess is that she probably had a very high credit score before didn't she? ~800 territory? I fail to see how a couple of lates could take her from 700 to 600 still after 2 years(800 to 700 sure, but that's different). Keep in mind that most great lenders will issue *best prime rate* at anything over 740. In the lower 700s it's a difference of like .10% a year. I wouldn't worry about it that much. It will come back on its own.

Nationstar is the new servicer. She JUST got the letter one week ago from them that they'll be the new servicer for her mortgage. Even this month she had paid B of A for her mortgage. So who would this GW letter go to?

 

I doubt her scores were in the 800's. Low to mid 700's for sure though. And it's funny because we never intended to look at her credit because she has a car loan, mortgage, 6-7 cc's and you say to yourself "everything is just fine!"

 

Up until I needed an AU a year ago...I said to myself, "what IF!!! her credit isn't as good as I expect and it screws me rather than helps me?" So sure enough I pulled her file a year ago....and she was at 564, 574, 584!!!!!!! The late payments happened a year prior to when we looked up her scores, so they could've been even lower. The utilization was 75% too (let's be honest here). Either way though, three months ago she was at 603, 606, 618 AND!!! Since then she knocked out 2 store cards she owed AND she just made a massive payment a few days ago to 2 of her cc's (about $4k)...All this just brought her utilization down to 20% compared to 50-60% a few months ago, so I know she's going to get a nice boost in her scores next month. Only negatives now are the 2 lates and I need some advice to help her with that.

 

It sucks because she's a straight arrow. She's been making perfect payments for a decade with any bill she's ever had. Then she got these 2 lates and messed up years of payment history, overnight. She's thought of not paying the mortgage and doing a BK. I got mad at her cause I don't feel her issue is bad enough. If you do a BK, make sure it's worth it. Don't do it for $10-15k in cc's. You know?

 

But anyway.....I did look at Cash Call like you said. Seems like a good servicer. But I also have a good person for short sales. Her mom taking over the payment alone would be the best but she doesn't qualify. Everything is day to day for now. Thanks for putting another option on the table and informing me of Nationstar. For now, I'd like to get her credit back to where it was by getting those lates off. Thanks again

 

Bold: Well you skipped over that piece. I had never heard of 2 lates costing 100 points a year later before and it left me scratching my head when I read that. Had you mentioned 75% utilization then I would have told you that the reason why she dropped 100 points was 75% utilization. The 2 lates 2 years out is likely worth maybe ~15-25 points at that level(in comparison to what she would have had without them). The utilization likely cost her 70-80 points. If she can get down to less than 10% utilization I wouldn't be surprised if she updates to ~680-700 territory.

 

I'm personally dealing with a friend who has a short sale from Jan 2011 and about 8 120 day lates on the same mortgage prior to that who is as of a few days ago at 725 with an otherwise clean credit history minus the short sale and lates required to get a short sale. You're 2 years out from a 30 and 60 day late. There is no reason what so ever that should be costing your GF much in her credit score anymore.

 

You're attributing to much impact to the score from those lates than is possible. In another year she should be right in the prime sweet spot(low to mid 700s) assuming no other issues and low utilization. By the way utlization is calculated in 2 ways and can be a double hit. They calculate both the utilization on all tradelines, but also each one individually. I believe each tradeline that is individually over 50% counts as another blow on her credit score. So at 75% she likely got hit once for overall utilization, but also individually for probably at least 5 CCs of the 6-7. High utilization is a real credit score killer.

 

Cash call is at first an **originator**. They probably will be your servicer for a long time as well, but that's the next piece. It's originator, investor, and servicer. Originator is who issues you the mortgage. The investor is who owns the mortgage. The servicer is who collects payments and remits them to proper people(investors, municipals for property taxes, etc.)

Edited by denny123

Share this post


Link to post
Share on other sites

 

 

My GF was dealing with a credit repair company so I don't know what they were sending out for the past year that did NOT work. If GW is what they do initially, I don't know what they've done throughout the year. Any suggestions where I should help her start from? Do we have to throw jabs or is there anyway we can go for the KO?

Try and get the letters they sent from the credit repair company. Hopefully gf canned them. If lates are all that are on her report then it should be pretty easy to hopefully try and GW the mortgage company.

 

Look for exectives at the mortgage company and start sending emails to one or two. I usually go for VP of Customer Service if one is avaliable if not just usually VP. Rarely have I actually gone to the Ceo/President, maybe once or twice.

 

In Google just type Exectives of Mortgage company and you should get a press page or some kind of page at the company that may list exectives. Email address format are usually firstnamelastname@company.com or firstint.lastname@company.com

Ok...

 

To be honest, her file is VERY clean aside of the late payments that posted from the mortgage. The original loan was from Countrywide which later turned into Bank of America and just recently she got a letter stating that the mortgage is now owned by either Nation Start or National Star. So I don't know where to begin.

Nation Star, we found out, wound up with a bunch of mortgages that the bigger banks thought might go into default. My folks wound up there when they tried to streamline refinance thru Citi a couple of times (and could not because they were so upside down ).... I feel bad for anyone that winds up with Nation Star they are a true pain in the A$$. They treat my parents like they are in collections despite never missing a payment to any mortgage company in over 30 years.

Share this post


Link to post
Share on other sites

 

 

My mortgage was also with BOA, before they sold it to M&T. BOA only reported for the time they serviced it. M&T is reporting from the time they took it.... On my Tri-Merge Mortgage credit report (I'm in the middle of a refi), BOA's portion of my payment history, has a note stating "TRANSFERRED TO ANOTHER LENDER; CONVENTIONAL REAL ESTATE LOAN, INCLUDING PURCHASE MONEY."

 

I don't know if your GF's current servicer is reporting the lates, but I'm thinking they're not reporting her payment history with BOA. So your GF will probably have to deal with BOA, about getting the lates removed...

 

BTW, wouldn't it just be easier if your GF just pulls her credit report to see who she may need to deal with? One other thing ... getting the lates removed might be as easy as just disputing it as never late. Years ago, my ex-GF disputed a couple lates as never late, with the CRAs, and it was updated to never late... Those lates were 2 or 3 years old, so the creditor was probably just being lazy, about looking up the records, and didn't respond to the dispute...

 

Bold: If that is true that is good news for the OPs GF. I would rather deal with BofA(as bad as they are) than deal with Nationstar.

 

I guess disputing that with the CRAs is maybe worth a shot, but all it takes is the lender to verify when the CRAs request the information for that not to work. Also, it is dishonest since the GF was actually late. You dispute that and you're lying to a credit reporting agency. At least when you send requests demanding proof or demanding verification that each of these specific details are 100% correct or remove lates you're at least not deliberately lying to the CRA(or at least it's in more of a grey area).

 

Plus generally speaking it's been pretty well established that making requests that aren't lies are usually more effective anyway.

That's the least of the worries. You want to talk about lying? how about the guy at the bank that told them not to worry if they missed 2 payments when her mom was going in for her surgery. He made them feel comfortable that the payment would be tacked on to the end of their mortgage. He forgot to mention the "........oh! and by the way, we will report it as 2 late payments on your CR's." My GF had her half of the mortgage. Her mom was out of work and couldn't come up with the other half of the money for those 2 months.

 

And we talk about it all the time too. If we knew this was going to be the case, I would've even given her the other half of the money for those 2 months to avoid a situation like this one now.

 

 

Look justify it any way you want, but the CRAs didn't tell you GF that she could miss 2 mortgage payments. And no offense(truly), but I'm rather shocked that anybody would act on some lowly bank employee's advice to not worry about it without a single piece of paper being given to her saying that they'll let those 2 payments rollover.

 

If that is the case you want to make then when you pull your girlfriends credit in a couple of months with Nationstar's name as the new servicer you'll be able to see whether Nationstar is listed as the servicer for the whole line or if it's BofA up until transfer date and then Nationstar afterward. If those few FICO points are worth so much to you then you can send a letter to BofA and threaten suit over the lies a representative of their bank said to you about those payments. Bank of America probably would think "to hell with fighting this" and then remove the lates since they can easily.

 

It's technically defrauding a credit reporting agency to lie to them about past credit history. It's a crime whether you stand a remote chance of getting caught or not. That is why some of the pro's on here are so impressive to read because they have figured out ways to push what they want without lying or defrauding CRAs, OCs, or CAs. And they do that by instead of disputing "not mine" they request "prove everything reporting is mine" or instead of disputing whether a tradeline is yours they dispute dates, typos, coding, etc. and try to force a delete that way.

 

I hope you see this coming from a person who was just offering you information to help you, but if you feel the desire to essentially commit a crime(albeit a hard to enforce one) to maybe increase your GFs credit score by ~20 points then maybe you should really think twice about how you look at things like this.

Edited by denny123

Share this post


Link to post
Share on other sites

That is why some of the pro's on here are so impressive to read because they have figured out ways to push what they want without lying or defrauding CRAs, OCs, or CAs. And they do that by instead of disputing "not mine" they request "prove everything reporting is mine" or instead of disputing whether a tradeline is yours they dispute dates, typos, coding, etc. and try to force a delete that way.

 

This is exactly what we need to do. Get them on a technicality, I want them to show the proof. It would be nice to get those removed. That utilization might've been the major blow then.

 

Thanks for breaking down the differences between originators, servicers and investors.

 

@CV...she went from Countrywide to B of A to Nationstar now. And yea, for all we know...nothing happens at all.

 

@crabjoe..should I just do the dispute online for her?

Share this post


Link to post
Share on other sites

Honestly steelcity, in a year or 2 the effect towards the credit score will be like it never even happened. A couple of lates is not even close to the issues many people on here deal with when they have numerous charge offs, collections, maybe a judgement, or a bankruptcy. If it was me I wouldn't lose sleep over it. Once a borrower gets to 740 they can basically get prime anything they want on the credit score side and the whole focus shifts to

A) Income and Debt to income(monthly debt service divided by monthly gross income) for installment loans and mortgages

B ) And the effect of high limits and prime cards begetting more high limits and better prime cards for revolving.

 

Get the utilization down to less than 10% and no more than 20% on any individual line and then pull the credit. I'd be willing to bet that you'll see scores that you'll "think f@ck it, not worth the time to mess with 2 lates when the credit scores are that good".

Edited by denny123

Share this post


Link to post
Share on other sites

Honestly steelcity, in a year or 2 the effect towards the credit score will be like it never even happened. A couple of lates is not even close to the issues many people on here deal with when they have numerous charge offs, collections, maybe a judgement, or a bankruptcy. If it was me I wouldn't lose sleep over it. Once a borrower gets to 740 they can basically get prime anything they want on the credit score side and the whole focus shifts to

A) Income and Debt to income(monthly debt service divided by monthly gross income) for installment loans and mortgages

B ) And the effect of high limits and prime cards begetting more high limits and better prime cards for revolving.

 

Get the utilization down to less than 10% and no more than 20% on any individual line and then pull the credit. I'd be willing to bet that you'll see scores that you'll "think f@ck it, not worth the time to mess with 2 lates when the credit scores are that good".

oh, I bet. I know the routine though. I was one of those people with the CO's, CA's, judgements, etc. Hers is really nothing. She'll be down to 10% in 3 months tops. But it's the small stuff that annoys you, you know. It's liking getting a carwash and a bird cr@ps on your windshield, your not gonna clean it up? haha

Share this post


Link to post
Share on other sites

The last post in this topic was posted 2708 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




  • Member Statistics

    • Total Members
      179,463
    • Most Online
      2,046

    Newest Member
    MrsOKW
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines