I Need to Get Past Late Mortgage Payments Removed

Question:

Dear Steve,

What is the process for getting old (5 years) late mortgage payments removed from my credit report?

Five years ago, I was late about 6 times with my mortgage payments.

Since then, I have been making my regular payments, even putting extra toward the principal.

I have had a good credit rating for 3 years (720). My husband has a stellar credit report with no late payments and a score of 780.

We applied for a loan ($100K) from Lightstream two days ago through our bank, where we have personal, and business accounts for the past 14 years.

We were turned down because of the past late payments. How can I get them removed?

And if we apply again, just my husband, will it damage his score?

Thank you for your help!

Mary

Answer:

Dear Mary,

Negative information should remain on your credit report for up to seven years and 180 days from when you last went delinquent.

Your credit report is a reflection of both good and bad information.

Knowingly removing negative information and then using that credit report is can be pursued as credit fraud.

The smarter move would be to work with a mortgage broker representing many different lenders and tell them upfront about the old mortgage issue.

Every lender sets its own standards. If you reapplied with just your husband on loan, there is no guarantee that you would be approved since it might not fall outside his allowable debt-to-income ratio.

Credit scores, payment history, debt-to-income ratios, and more are all factors in being approved or denied for a loan.

If you want your best shot at being approved, you really need to be open and honest with the mortgage broker before applying. A broker will know which lender to submit your loan to. Typically the bank sends it to the lender they have a relationship with and not the best lender for your situation.

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Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.


Damon Day - Pro Debt Coach

6 thoughts on “I Need to Get Past Late Mortgage Payments Removed”

  1. What is the point of presenting the Subsection of some regulation…

    There is nothing in the ost that supports the notion that some negative item “should” remain on as credit report for any period of time…

    The regulation simply asserts a period of time for which a negative item “can” be reported…

    CAN and SHOULD are two entirely different. things…”

    The law does not dictate that something negative “should” be reported on a Consumer’s Credit Report, it only dictates what can be reported and for what period of time…

    The Creditor has a choice as to what it wished to report on a consumer’s Credit Report and what wishes not to report…Creditors can elect to remove previously reported negative information and there is no law precluding such removal…

    My argument is solely with the use of the word “should”///

    Reply
    • Are you disputing that information on a credit report should be accurate and can remain up to the statutory maximum? Of course, the issue becomes that when factual negative information is removed from a credit report and then that credit report is used in the application of new credit, consequences can occur and it can reappear on future data dumps.

      Additionally, the removal of accurate but negative information from a credit report is dictated by the reporting agreement between a creditor and the individual credit bureau.

      But I’m not sure I understand your position here regarding this reader question. She says her payment record was accurately reported and she was in default at some period in the past. The fact that one lender turned her down does not alter my advice that a discussion with a mortgage broker familiar with multiple lenders would give her a better shot, is incorrect or not a smart plan.

      Reply
      • OMG Steve…

        That answer to Mary was far from your best…Geeeesus

        “Negative Information ‘should’ stay in your report for 7 years plus 6 months…

        Steve, that’s just not true and was a terrible disservice to Mary…

        1) Many Mortgage Servicers will re-age an account and remove late payments in light of a lengthy positive payment history…

        2) Many banks will ignore late payments that old (60 months ago)…

        There isno law that says Negative Information should stay on a Consumer’s Credit Report for 7+ years….

        Negative Information simply cannot be reported past this benchmark…

        Reply

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