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Does Participating In Consumer Credit Counseling Disqualify A Borrower For A Mortgage?
Here is a helpful post with a question clients may ask you:
Does Participating In Consumer Credit Counseling Disqualify A Borrower For A Mortgage? As he noted, FHA says OK, FNMA says nothing.
Importantly, people need to realize that a Consumer Credit Counseling Service many times will not make payments to Creditors on time in hopes of negotiating the balance down.
Be sure to find out whether this applies to you or someone you care about.
I often am asked Does Participating In Consumer Credit Counseling Disqualify A Borrower For A Mortgage? The answer is NO, just participating in Consumer Credit Counseling does not disqualify a borrower for a mortgage. FHA is very clear about this, but Fannie Mae is not, in fact I could not find anything in the Fannie Mae Guidelines addressing Consumer Credit Counseling.
The problem with using the services of a Consumer Credit Counseling Service is that they many time will not make payments to Creditors on time so that they can leverage their position in trying to get the Creditor to accept less than the full amount owed. While it is good that they are many times successful in getting Creditor to accept less than owed, it is bad ... more
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