TheOtherMe
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Post by TheOtherMe on Nov 19, 2017 9:38:04 GMT -5
Received an email yesterday that my FICO score had decreased. Look at it on my credit union's website.
I see 3 things:
1. I paid off my car This is correct
2. Mortgage with bank xxxx
3. Mortgage with bank yyyy
Bank xxxx sold my mortgage to bank yyyy. Right now it looks like I have two mortgages when I only have one.
It's noted that mortgage is too high in relation to value of house. Of course it is when it has two mortgages.
Hoping this straightens itself out in a month.
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Deleted
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Post by Deleted on Nov 19, 2017 10:48:30 GMT -5
How does FICO know the value of your house?
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Bonny
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Post by Bonny on Nov 19, 2017 11:44:57 GMT -5
How does FICO know the value of your house? Yeah, the ding is usually related to the balance and utilization of credit. If you have recently refied you might get a dinged both from the "newness" of the loan as well as the current balance relative to the original loan amount.
I wonder if there is a problem with the loan "resetting" as the balance at the time of transfer? It's an odd thing.
But I'll bet your FICO is over 800 so you have to wonder how much is actually matters.
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Deleted
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Post by Deleted on Nov 19, 2017 11:48:15 GMT -5
How does FICO know the value of your house? Yeah, the ding is usually related to the balance and utilization of credit. If you have recently refied you might get a dinged both from the "newness" of the loan as well as the current balance relative to the original loan amount.
I wonder if there is a problem with the loan "resetting" as the balance at the time of transfer? It's an odd thing.
But I'll bet your FICO is over 800 so you have to wonder how much is actually matters.
I think you are right that the utilization was affected by the "resetting." This happened to me when I refinanced. All of a sudden mine said my utilization was too high. The way it used to be has changed; mortgages count now in the total utilization. And, yes, it doesn't matter much if your FICO is over 800.
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TheOtherMe
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Post by TheOtherMe on Nov 19, 2017 18:13:18 GMT -5
It was over 800 until this latest hit as of yesterday. Now it isn't.
I didn't refi. The mortgage was sold but the credit bureau is still showing both mortgages. Neither company has yet to tell me what the $ amount of my mortgage is for December. That is the month the escrow balance is recalculated but it is on the credit report. So far I have not been impressed with the company who now holds my mortgage.
Maybe I am not impressed with the local bank that didn't hold my mortgage.
I don't expect to open any new lines of credit in the foreseeable future. That will only happen if my car gets totaled.
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hoops902
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Post by hoops902 on Nov 19, 2017 19:20:56 GMT -5
How does FICO know the value of your house? Not that I'm an expert, but is it possible they're also reporting the assessed value from the time of the mortgage as part of that? I don't have a mortgage, so not sure how they report that on the credit report. I might presume that companies SHOULD care if I have a $100K mortgage on a $90K house vs a $1M house...though I don't know if "should care" in this case equals "gets reported".
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Deleted
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Post by Deleted on Nov 19, 2017 19:27:28 GMT -5
I'd bet they have a link to Realtor.com, Redfin.com or another valuation site. They're not always accurate, of course; USAA automatically displays mine and I find it hard to believe it's worth 20% less than I paid 2.5 years ago but the cookie-cutter McMansion DH and I sold in a nearby suburb at the same time is up almost 10% (you can have them include values of properties at other addresses).
I haven't monitored my credit score recently but it always said that points were taken off because I had too much open credit (i.e., my credit card max might be $20K and I owed just what was due on the current bill). Right now I have only 2 open credit cards (and I ALWAYS notify the bank when I stop using a card so they close the account), so it's not a big issue, particularly since I have no plans to refinance or get a new credit card.
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Deleted
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Post by Deleted on Nov 19, 2017 20:08:54 GMT -5
It was over 800 until this latest hit as of yesterday. Now it isn't. I didn't refi. The mortgage was sold but the credit bureau is still showing both mortgages. Neither company has yet to tell me what the $ amount of my mortgage is for December. That is the month the escrow balance is recalculated but it is on the credit report. So far I have not been impressed with the company who now holds my mortgage. Maybe I am not impressed with the local bank that didn't hold my mortgage. I don't expect to open any new lines of credit in the foreseeable future. That will only happen if my car gets totaled. Why would your mortgage payment be different? The terms don't change. The amount of the payment doesn't change the month that it is recalculated. They send you a notification of the change first and give you some options -- pay the shortage (or get a refund if there is an overage) or add the shortage to the new payment. The options may vary, but they don't change the payment in a split second.
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alabamagal
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Post by alabamagal on Nov 19, 2017 20:14:20 GMT -5
If it related to a refi it should work its way out.
I had a 2nd mortgage at a local bank that was showing up as a student loan at one bureau. Didn't worry too much until I was moving and for my new mortgage I had to explain " No it isn't student loan I didn't report. Look at the other bureau and you will see the same balance. Figure it out."
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Deleted
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Post by Deleted on Nov 19, 2017 20:32:10 GMT -5
How does FICO know the value of your house? Not that I'm an expert, but is it possible they're also reporting the assessed value from the time of the mortgage as part of that? I don't have a mortgage, so not sure how they report that on the credit report. I might presume that companies SHOULD care if I have a $100K mortgage on a $90K house vs a $1M house...though I don't know if "should care" in this case equals "gets reported". Except that assets and income are not included in credit reports. I mean the guy with a 90K mortgage on a 100K house could also have 5 other 200K houses paid off and a 300K/year income.
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TheOtherMe
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Post by TheOtherMe on Nov 19, 2017 21:09:39 GMT -5
It was over 800 until this latest hit as of yesterday. Now it isn't. I didn't refi. The mortgage was sold but the credit bureau is still showing both mortgages. Neither company has yet to tell me what the $ amount of my mortgage is for December. That is the month the escrow balance is recalculated but it is on the credit report. So far I have not been impressed with the company who now holds my mortgage. Maybe I am not impressed with the local bank that didn't hold my mortgage. I don't expect to open any new lines of credit in the foreseeable future. That will only happen if my car gets totaled. Why would your mortgage payment be different? The terms don't change. The amount of the payment doesn't change the month that it is recalculated. They send you a notification of the change first and give you some options -- pay the shortage (or get a refund if there is an overage) or add the shortage to the new payment. The options may vary, but they don't change the payment in a split second. Because December is when my escrow is analyzed and any adjustment is made. There has not been a December yet when my mortgage did not increase and this year is no different. I have been sent nothing from the new mortgage company.
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TheOtherMe
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Post by TheOtherMe on Nov 19, 2017 21:12:38 GMT -5
If it related to a refi it should work its way out. It is not a refi. Mortgage has been sold.
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Deleted
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Post by Deleted on Nov 19, 2017 21:54:08 GMT -5
Why would your mortgage payment be different? The terms don't change. The amount of the payment doesn't change the month that it is recalculated. They send you a notification of the change first and give you some options -- pay the shortage (or get a refund if there is an overage) or add the shortage to the new payment. The options may vary, but they don't change the payment in a split second. Because December is when my escrow is analyzed and any adjustment is made. There has not been a December yet when my mortgage did not increase and this year is no different. I have been sent nothing from the new mortgage company. Your bank (both of them) are decidedly odd if they analyze your escrow and increase your payment the same month. I can't even fathom how that would work. I bank with Chase. They do the escrow analysis in January and send me the results. I have to decide in February whether I want to pay the shortage or roll it over. I don't remember if the first adjusted payment is due March 1 or April 1, but there is no way they do it in January and make it due Februrary 1. Worse, in your case you are saying they analyze it in December and make it due with your December payment. I can't even begin to figure out how they do that. Are you sure they aren't adjusting it with your January payment? In any case, you usually get a special grace period when the mortgage is sold. It isn't long, but they account for any problems.
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alabamagal
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Post by alabamagal on Nov 20, 2017 8:07:39 GMT -5
If it related to a refi it should work its way out. It is not a refi. Mortgage has been sold. But it is same problem, both companies are showing the loan during transition. It will work off soon. Your escrow calculation is not impacted by credit score.
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TheOtherMe
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Post by TheOtherMe on Nov 20, 2017 11:30:46 GMT -5
The now former bank did the escrow analysis as of October 31. Mortgage was sold as of November 2. This bank has never given me an option to pay the shortage. They have increased the payment.
In previous homes that I have owned, I was given an option to pay it in a lump sum or spread it out. I knew there would be a shortage this year due to property tax increases so I put extra money in to escrow over the year. It still wasn't enough.
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