Special offer

Do you have any suggestions....

By
Services for Real Estate Pros with Bowers Insurance Group

Help... I have a client who is trying to purchase a home.  I am trying to get her approved, but the problem is, she is an authorized user on 2 of her father's accounts.  He had a heart attack last year, and she needed to be added to she could handle all of his business because he was out of commission for several months.  He has recovered a while ago, and is in charge of his own affairs, however, he has not been paying these bills on time, and since she is an authorized user, these late payments are affecting her score.. What is the best way to get these removed from her credit report..

 

Thanks....

Kristeen Smith
First Portland Mortgage Corp - Portland, ME
Maine Mortgage Specialist

As of January 2008, the rules were to have changed so that your client's credit scores would not be impacted by accounts which she is only an authorized user.  To date, according to my credit agencies, some credit bureaus scoring models have fixed this and others have not. 

I have also been told that your client should still call those credit card companies to get removed before the cards are too delinquent.  Since she never signed anything to sign up for the card or liability, they should take her off.

Aside from that, I'm not sure how much your client's scores have deteriorated, but perhaps and FHA loan can still help.  Many FHA underwriters not only look at scores, but at credit explanations to confirm the problem shouldn't re-occur.  They have authority to make a loan that "makes sense".

Sep 02, 2008 06:28 AM
Jason Holter
Premier Nationwide Lending - Houston, TX
Houston Mortgage and Houston Real Estate

I would suggest having the father call the credit companies to see if she can be removed from the account.  I would also get a letter from the creditor that states while she is an authorized user she is not responsible for making the payments.  Send those letters to the credit bureaus and request a line item update and rescore.  Let me know if this works.

 

Sep 04, 2008 06:34 PM