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J. Mario Pre…, Real Estate Pro in San Francisco, CA

How badly does entering Consumer Credit Counseling affect a buyer's financial profile?

Asked by J. Mario Preza, CRB, CDPE, San Francisco, CA Tue Dec 7, 2010

Recently I met with a potential buyer who needs to sell a house before buying another. As I'm doing my inquiries, I uncover that the client entered into a consumer credit counseling program earlier in the year. I know from past experience that these programs are the kiss of death for future loans. Do you know how badly these credit counseling programs affect a buyer when applying for a new mortgage loan?

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J. Mario,
I'm a licensed lender as well as Realtor, I haven't run across this lately, but in the past underwriters treated it like a BK if it was disclosed. In some instances the creditors continue to show running lates on accounts which they have a reduced payment agreement on, so the scores drop and it appears they are significantly behind.
I wouldn't make any snap judgments though. Different companies have worked in different ways. Get them in front of your lender of choice right away and have their credit pulled. Once you they see that, you'll have an answer you can work from.
0 votes Thank Flag Link Tue Dec 7, 2010
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