How difficult is it to get a mortgage of 90 late?

Deal Score0

My wife and I are expecting a baby arrives in May and we will look at the cost should be, last year I was set to work and had a job that does not give us the lifestyle that we accept are stuck at the moment. We had our house for 2.5 years and have never had a crime, even on another credit. The option was put to me that the loan we have our first office time home buyer “Kentucky Home” has a leniency program when 90 days past due that the ability of mortgage for up to 3 years in which may have received information in our interest rate from 6.5 to 3% less for the term to give us a chance to bounce back, hopefully this time we would be able to review our finances. I am currently selling the cars we have to do something different and to reduce our debt payments. Our credit ratings are from 740 to 750, so I’m really concerned about 90 days delinqent. This will save us 300-350 3 years and we would, of equity in the house vs. refinancing because we come home for a short period to bring us back where we started to keep the original value and does save about 130 a month paid long-term use would be more, but we probably intend to sell this house in 3-4 years.

  1. Reply
    D L
    May 2, 2011 at 8:29 am

    So you want to not pay your mortgage for three months in order to qualify? Forget your credit scores, you will destroy them for at least 7 years by doing this. If you are planning on selling the house in a few years, you should either go for the refinance or consider selling it now to get out of the loan. Not a smart thing tho to intentionally stop paying your mortgage to use a program meant for those desperate to keep their homes.

  2. Reply
    Expert Realtor
    May 2, 2011 at 9:02 am

    Understand, that the Kentucky program allows to go that route, but it STILL negatively impacts your credit.

    As a former mortgage underwriter, here is what I would recommend:

    1. Make sure you do it for that 3 months…and only for those 3 months.

    2. Don’t cancel any credit cards…this does not help your credit score.

    3. Any credit cards you have that carries a balance, make sure you don’t charge more than 50% of the high-credit line on them.

    Now, how will this impact your future?

    Minimally…b/c in 3 to 4 years, if you have a perfect payment history going forward, lenders look back at the most recent 24 months…so the 90 days will be long behind you…you won’t even have to explain it.

    But no more lates will be key.

    However, you need to find out if it’s going to be treated as a “settlement” for the 3 years or if it will be reported to your credit as “paid as agreed”.

    PS: You WILL NOT destroy your credit for 7 years by doing that…I wish people would stop posting such nonsense. I know for a fact that if someone files for a Chapter 7 bankruptcy (which means they don’t pay anything), if they re-establish a perfect payment history, their scores are back up to near 700 in as little as 4 years.

    You are not filing for bankruptcy…not even close to the same event.

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