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Late Payment Corrections on Mortgage- Does this matter?
I was talking to my prospective lender today about the letter I received from Countrywide, wherein I informed her that the lates were corrected and showing current; then she asked for a copy of the payment transaction history.
Well, lo and behold, the transaction history is not updated and it shows that the payments were late and for the loan (Rapid Refi- 18 months on-time payments), this creates an issue because they do refer to the transaction history. Countrywide did update the credit bureaus, but not its own records.
Will it stop me from getting the loan? I have the letters from them stating the correction and I also have the corrected credit reports.
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1 Reply
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Are you saying you have issues with your mortgage and the late payment history? It must be not very pleasant, nonetheless.
Let’s consider some aspects:
The Influence of Internal Records: Lenders sometimes refer to past transaction history when assessing a loan application. Even in situations where the credit agencies have been revised, if Countrywide still has late payments in their records, it can hurt the chances of your future lending institution from making a sit to the loan.
Other Forms of Documentation: Given that you have Countrywide’s letters verifying the changes and corrected reports that you have done with the credit agency, it is important to bring this paraphernalia to the attention of your new lending institution. This can assist in clarifying the situation and proving that you are willing to solve the problem.
Contacting the Lender: Explain the difference in the records to your new lending institution. State that a supporting document shows the updates done in the bureaus and the communication with Countrywide, even if the internal records do not have the adjustments.
Policies of the Lender: When considering external records, internal records are not given equal respect to the different lenders. Some may show more flexibility when they see the evidence of the changes made.
A Retake on Countrywide: If you can, contact Countrywide and ask why their records are not being updated. A follow-up may be just what you need to speed up the correction process.
To sum up, although the present situation has disadvantages, there are ways to overcome such obstacles, including having the proper documents and explaining the situation to your potential lender.