I hope someone can help shed some light on this subject as I thought I was doing a good thing but apparently not.
The house I'm currently living in/owning just went under contract for a standard sale, and scheduled to close at the end of September. No big deal there. In process of finding a mortgage for a new house, the lender ran credit and saw that I had a second mortgage on the house. This second mortgage was settled last year after Litton Loan Servicing sold their second mortgages that were behind to LCS financial. They called and offered to settle and I received a letter from LCS Financial stating it was settled in full, liens removed, etc. But 2 out of 3 mortgage bankers said this would not work and I'd have to wait 3 years from the settlement date before I could apply for a loan. Why is this? I can't get any straight answers, and I thought I was doing a good thing by settling it and clearing it off the property. The 3rd broker is a family friend and he's going to talk to an underwriter Monday about the letter and if it would cause an issue with a pre-qualification or help things.
help?? I really would rather not rent for 3 years and have money going to someone else's pocket because I was trying to do something good and getting screwed for it? What can I do?