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.