A woman applied to refinance her residence. She also had a rental property on which she had a mortgage. Her mortgage verifications on both properties showed 22 late payments in the past 24 months. An inexperienced lender would assume that her application had no chance whatsoever. In this case, a few additional questions made all the difference.
When asked to explain, she told a story that truly made the underwriter cry. Her husband and three children had been in a car wreck in which the husband was killed and the children were seriously injured. The children were in the hospital for a long time, and then required extensive rehabilitation. They literally had to learn to walk and talk again. The borrower's medical insurance had run out long before all the hospital and therapy bills were paid. Knowing that she could not make all her payments every month, she made arrangements with her creditors to pay medical bills one month and mortgages the next. Her lender at that time accepted this plan as long as none of the payments was more than 30 days late, and a letter to this effect was put in her file. By the time she came to me for refinancing, she had paid off all the medical bills and had begun to make her mortgage payments on time. We made the loan to her.
short term cash loans, personal cash loans, advance cash loan,
This was an extraordinary event over which the borrower had little or no control, and it was unlikely to re-occur. The borrower did all the right things to help maintain her credit. She contacted her creditors before her problem got out of hand and worked out a plan to ensure the payments were made. No reputable lenders want to foreclose on a mortgage. They will go to great lengths to help the borrower if the borrower works with them.
This example would normally not qualify for computer underwriting because the credit scores would be too low and, in fact, it was done in the days when humans made the decision. To be approved today, without computer underwriting, that borrower would need to fit within all qualifying standards. Such as not exceeding qualifying ratios and having sufficient cash reserves. Even then, some underwriters and mortgage companies may not want to approve her. This is why the loan officer should know everything before taking the loan application. If there is a doubt about the loan being approved, the loan officer can run it by the underwriter first. At least, that is what the loan officer should do.
Need Quick Cash? Bad Credit And No Credit Ok. Flexible Payment And Super Low Fees. Get Cash Fast Today!
Rating of payday loans online
Get Online Application at online payday loans.
0 comments:
Post a Comment