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Tamika A. Goree
Broker | Owner
The DFW Property Shop
I had a case like yours last year where a woman had a debt that was similar to yours. I told her she had two choices. One, get into a payment arrangement for at least 3 months and call me back, or she would have to wait until the credit report showed the debt has been not paid in 48 months. She chose to wait out the 4 years. Once she hit that 48 month mark, I told her to contact an Attorney and provide them with a credit report. Once the Attorney reviewed the debt, they needed to issue an Attorney Opinion Letter that stated the debt is no longer collectable based on the Statute of Limitation of the State. This AOL would be then submitted to my Underwriter for review along with the credit report.
The way I work is, I never leave anything to chance. I always run my questionable scenarios by my Underwriter. In this case I was able to get a quick response. Like in your case, this woman has good credit with the exception of that one debt. All I needed to provide the Underwriter was a LOE (letter of explanation), AOL, and compensating factors what would help the Underwriter feel better about allowing the borrower to have a open collection on the report and still approve the loan. Compensating factors are i.e. time on the job, reserves, low balance on open revolving accounts, DTI that is not outside the box etc. I hope this helps demonstrates that there are solutions to every problem. You just need to have the foresight or luck to find yourself an experience capable Loan Officer.
Best of Luck!
You should consult with a lender and I have one that I personnaly use locally in Katy.
very professional and I recommend highly.
Richard Smith Mortgage/ lender
Branch Manager/Mortgage Banker NMLS #220593
"The Richard Smith Team" Southwest Funding 835 |click for map:
22503 Katy Freeway Suite 27, 77450 Office 281-994-4240 | Fax 281-840-6881
Complimentary Reports and Credit Repair http://www.texashomebuyingtips.com
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Good Luck and If you need any help please call/contact me your Katy Realtor.
Better Homes & Gardens Gary Greene, Realtor Katy/Houston
Fax: 281-646 1841
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I work with some Great lenders. If you would ike to meet to discuss your needs? Please call or email to set up an appointment. Have a Great Day!
"Selling Real Estate Since 2001"
Elite Texas Properties
12320 Barker Cypress Road
Cypress TX 77429
Your credit score that you stated would put you in line for FHA financing with 3.5% down payment. There are still some things that we would need to look at on the credit report to insure that you qualify for a mortgage. Feel free to contact me and we can work on a pre-qualification for you.
I have a really great local lender that I work with--he's great at educating buyers in the loan process. Even if you don't qualify now, he is great at giving you the steps you need to take to get there later. My partner, Randall Martin, and I would love to help you find what you are looking for. Let us know if we can help. Talk to you soon...V