When Can I Get A New Mortgage After A 90 Day Late?

Sid Farcus

LoanSafe Member
#1
It doesn't get much worse than a 90 day late on a mortgage (wells fargo), but it's what I have to deal with. I have 30,30,30,60,90 on my credit reports from Jan 2015 - May 2015. At some point here we would like to downsize our home and mortgage. Planning on selling here soon and renting something.

Based on the mortgage lates, how many years will I be renting before even thinking about shopping for a mortgage?
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#2
Hello Sid,

If you can clean up your credit and do not have ANY late payments for 12 months, then you may qualify for an FHA loan. For a conventional mortgage, you are looking at around 24 months. If you have a 680 credit score and 30% down payment, you can might be able to get an ALT A / 5 year ARM mortgage right away.
 

Sid Farcus

LoanSafe Member
#3
Thanks Maurice for your response. I am 12 months out from an lates. My FICO8 scores are between 670 - 700, but I assume my mortgage FICO scores are probably lower because of those lates.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#4
You are welcome!

Yes, that is most like the reason your scores may have dropped. So, it looks like you may be able to get a mortgage pretty soon depending on which route you would like to take, and or your down payment.

You might want to call our LoanSafe mortgage expert, Erik Sandstrom @1-800-779-4547 to see what he recommends. Erik is a stand up guy and will give you the best advice.

I wish you the best of luck!
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
#5
Moe is right on the nose there, you can get a new mortgage once you have 12 months clean after missing a mortgage payment history. Now I believe it depends on whether or not you had Foreclosure proceedings start. I'm double checking on that with my underwriter but if you did receive a Notice of Default, Notice of Sale or on your Credit Report it says "FC Proceedings Started" there are additional waiting periods.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
#6
I did hear back from my head underwriter on this topic and she said that if you obtain an approval through the automated system you should be fine. If you don't obtain an approval through the system it will depend on what it says and how it reads the credit report. The feedback from the system will determine if you're approved now or not. Ultimately that is going to be the deciding factor.
 

Sid Farcus

LoanSafe Member
#7
So has anyone in recent history been successful in getting their mortgage company to do a goodwill adjustment on late marks? I have seen very limited success a long time ago but nothing recent.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
#8
I haven't seen one in my career but that doesn't mean it hasn't happened before.