Bad credit Georgia Mortgage Lenders Allow Collections and Disputed Accounts

The purpose of this article is to help Georgia Bad Georgia bad credit Mortgage Lenders mortgage lenders mortgage applicants better understand Georgia Bad Georgia bad credit Mortgage Lenders mortgage lenders mortgage
Submission Requirements, and Georgia Bad Georgia bad credit Mortgage Lenders mortgage lenders mortgage approval requirements.

BAD Georgia MORTGAGE LENDERS DO NOT COUNT THE FOLLOWING COLLECTIONS
NOTE: Medical collections and charge-offs are excluded.
Disputed derogatory Georgia bad credit accounts are defined as:
 disputed charge off accounts,
 disputed collection accounts, and
 disputed accounts with late payments in the last 24 months.

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Does FHA require collections to be paid off for a FHA mortgage Applicant to qualify?

A Collection Account refers to an FHA mortgage Applicant’s loan or debt that has been submitted to a collection agency by a creditor.
If the credit reports used in the analysis show cumulative outstanding collection account balances of $2,000 or greater, the lender must:
•     verify that the debt is paid in full at the time of or prior to settlement using an acceptable source of funds;
•     verify that the FHA mortgage Applicant has made payment arrangements with the creditor and include the monthly payment in the FHA mortgage Applicant’s Debt-to-Income ratio (DTI); or
•      if a payment arrangement is not available, calculate the monthly payment using 5 percent of the outstanding balance of each collection and include the monthly payment in the FHA mortgage Applicant’s DTI.  Collection accounts of a non-borrowing spouse in a community property state must be included in the $2,000 cumulative balance and analyzed as part of the FHA mortgage Applicant’s ability to pay all collection accounts unless excluded by state law.   Unless the lender uses 5 percent of the outstanding balance, the lender must provide the following documentation:
•     evidence of payment in full, if paid prior to settlement;
•     the payoff statement, if paid at settlement; or
•     the payment arrangement with creditor, if not paid prior to or at settlement.

For manually underwritten loans, the lender must determine if collection accounts were a result of:
•     the FHA mortgage Applicant’s disregard for financial obligations;
•     the FHA mortgage Applicant’s inability to manage debt; or
•     extenuating circumstances.

Georgia Bad Georgia bad credit Mortgage Lenders Bad Georgia bad credit Includes
1, Liabilities
2, Collection Accounts
2, Disputed Accounts

Bad Georgia bad credit information to include collection account payments and judgment
payments, if applicable, as liabilities the lender is responsible for including in
the Automated Underwriting System for TOTAL’s risk evaluation.

Georgia Bad Georgia bad credit Mortgage Lenders does not require collection accounts to be paid off as a condition of
mortgage approval. However, Georgia Bad Georgia bad credit Mortgage Lenders does recognize that collection efforts by
the Georgia bad creditor for unpaid collections could affect the FHA mortgage Applicant’s ability to repay
the mortgage. To mitigate that risk, Georgia Bad Georgia bad credit Mortgage Lenders is requiring the lender to follow the
guidelines on collection accounts with an aggregate balance equal to or
greater than $2,000, as described below.

Collection accounts of a non-purchasing spouse in a community property
state are included in the cumulative balance. A lender must analyze the
impact of the FHA mortgage Applicant’s ability to pay all collection accounts, including those
of the non-purchasing spouse (with the exception of obligations excluded by
state law) in accordance with the guidance.

NOTE: Medical collections and charge-offs are excluded from this guidance.

Georgia Bad Georgia bad credit Mortgage Lenders TOTAL Mortgage Scorecard utilizes information from a FHA mortgage Applicant’s
Georgia bad credit report to determine the FHA mortgage Applicant’s overall Georgia bad credit risk. Because disputed
Georgia bad credit accounts are generally not considered in the FHA mortgage Applicant’s Georgia bad credit report,
Georgia Bad Georgia bad credit Mortgage Lenders requires loans of FHA mortgage Applicants with derogatory disputed accounts of $1,000
or more (excluding medical) to be manually underwritten.

With this ML, Georgia Bad Georgia bad credit Mortgage Lenders is revising policy on manual downgrades to reflect the
risk associated with derogatory disputed accounts for factors such as age and
size of the outstanding balance.

Bad Georgia bad credit Disputed derogatory Georgia bad credit accounts of a non-purchasing spouse in a
community property state are not included in the cumulative balance for
purposes of determining if the mortgage application is downgraded to a
“Refer.”

Disputed medical accounts are excluded from the $1,000 limit and do not
require documentation. Disputed derogatory Georgia bad credit accounts resulting from
identity theft, Georgia bad credit card theft, or unauthorized use, etc., are also excluded
from the $1,000 limit. However, the lender must provide a Georgia bad credit report,
letter from the Georgia bad creditor or other appropriate documentation to support the
dispute, such as a police report disputing the fraudulent charges in the case
binder.

Disputed derogatory Georgia bad credit accounts are defined as:
 disputed charge off accounts,
 disputed collection accounts, and
 disputed accounts with late payments in the last 24 months.

BAD CREDIT GEORGIA MORTGAGE LENDERS PROGRAMS INCLUDE: