Well, in all honesty, we were pretty close to getting a home around this time last year. Here's the story, my father used my ssn to open up a bank account with an overdraft account. You can probably guess how that ended up. So while getting a house with Centex, my wife and I explained that the 13.5K owed to Chase was fraud committed by my father. So the underwriter's took my explanation and approved my mortgage to the next step, which was the mortgage insurance company (we put 5% down). This was good since we only had a year to wait for the collection to fall off anyway. However, when it made it's way to the MI company, they totally declined the insurance on our new mortgage and would not hear of the explanation. There was pretty much nothing more we could do; we wrote letters and even tried dealing with a broker. Anyhow, it's been a year almost and now the collection agency is off my report, but the bank that charged off that debt is still on there. We are estimating that to fall off in October. We plan on looking around that time, but it's very sad because we locked in a 3.25% interest rate and now rates are in the mid 4%'s. Not to mention houses are 10K more than they were two years ago.
I guess I have another question: Should I continue to wait until this charge off is completely off my record even though the collection agency has already dropped off. My Credit Score is 793 but I know the mortgage insurance company looks real closely at everything.
Also, besides the 20% down, are there any other ways to get the MI company to insure my loan.
In the end, it's very sad that my family and I missed out on a lovely home and a great interest rate for a debt that I got absolutely nothing from. Being a Jr. sucks so bad.