Purchase, Debt, and a Covid-19 Kind of Situation

CASE STUDY 3

My client, whom I prequalified in mid-January 2020 with an excellent credit score and no reported late payments, was ready to start shopping and look for their dream home … not knowing that a few months later, one of the deadliest viruses would strike and major panic would settle in and would literally shut down the housing market and everyone would be confined to their homes.

In mid-April, the housing market would steadily open up and my client would then find their property.

Since the credit report that I pulled out back in January was valid for 30 days, I had no choice but to pull another one out. To our surprise, my client’s credit score shot down by approximately 100 points; it went from 714 to 614!

My client ended up using the Covid-19 credit relief program, which allowed clients to skip up to three months of payments on their credit cards. However, that information was reported to Equifax, which it was not supposed to, and affected the credit score.

My client paid their credit card on the fourth month, the system generated an error and closed their credit card which made it even worse.

Now was the time for me to roll up my sleeves and show them what I was capable of and come up with a strategy.

First, my client would have to call the credit card company to explain and rectify the situation and mention an error was made on the company’s part and to reactivate their credit card and send an explanation and apology letter.

Second, my client would have to contact Equifax and explain the situation and send them the letter from the credit card company explaining their mistake.

As for me, I would have to negotiate and explain the details of what happened to the bank. It was a hard-fought war with the bank for the mortgage, but I got it done; mortgage approved!

We found a way, that is why we say each mortgage is “custom-made”, not every client’s mortgage situation is the same.

Purchase, debts, Covid-19 … what a file!