Will we be able to buy a home if we have been late on a prev

brwnfrm · Joined: 14 Apr 2008 Posts: 1 1.53 Dollars($)

My husband has lost his job, we have for the first time on our credit a late payment on the mortgage, we are working on not having another one. My husband may be getting a job in a different city and we will have to sell our home, but we will be looking to buy another one, will this be possible??? We worked so hard to get this home (first time buyers) and we have done everything in our power to keep a good payment history. I am so scared that when we do sell our home and move, we might run into problems and have to go back to renting again. I do not want this to happen. We have a fixed interest on our house now and we added 280.00 dollars to our house payment to go into Escrow so we have been paying more than what the intial payment was assigned to us at closing, we had heard horror stories of people not being able to pay the taxes on approved properties after moving in to their new home so therefore we added this into our mortagage payment. Can I ask the mortgage lender to use the money from my escrow account to cover the late payment on the house? ( At the end of the year we get a check sent to us from the escrow account) Our credit scores throughout our lives have not been good, but we have worked hard to bring them up and we still have a ways to go, but I am terrified that we might be on the road to disaster. If anyone can give us some advice we would greatly appreciate!!!

adonis · Posted: Mon Apr 14, 2008 9:43 pm Post subject:

Welcome brwnfrm,

I don't think it's impossible for you to get a mortgage even though you have a late payment. But when it comes to removing the late payment as shown on your credit report, I don't think it's usually done.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi brwnfrm,

Welcome to the forum.

Have you tell your lender about this? can you pay off the lender after selling the property? You may get approved for another mortgage but if you cannot payoff the lender after selling the property then he may file deficiency judgment and you will still owe to him the due amount and also your credit will be affected.

Feel free to ask if you have any further questions.

Best of luck,
Larry

John1 · Posted: Tue Apr 15, 2008 7:21 am Post subject:

FHA may be your only option for a mortgage. With a late payment within the past 12 months will make it tough to get conventional financing.

gmakerley · Posted: Tue Apr 15, 2008 8:06 am Post subject:

that your late payment was caused by a loss of job/income is in your favor. document everything that you've gone through and maintain impeccable records. it is imperative, of course, that you continue to pay each monthly payment in the interim on a timely basis.

many underwriters understand financial hardship and will have the opportunity to give you the benefit of the doubt. as john dunn noted, your best bet for the next mortgage may well be an fha loan.

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