Letter to credit bureaus re: Foreclosure
Question: Has anyone ever sent along an explanatory letter on a bad credit incident to the major credit bureaus? The mortgage company from an investment property is not allowing me to refinance a 12% loan, nor remove PMI, because the value of the property has dropped significantly since we bought it as a primary residence in ‘89.
A realtor mentioned this approach to me, but I’ve never seen it in practice.
All advice is apreciated!
Thanks!
Answer: Huh? Sounds like two different things. Are you not getting a new loan because you have bad credit history (which you can indeed *attempt* to explain away by filing a comment with the credit bureaus), or is it because the value of the property has dropped?
That can’t be explained away with a letter, and if the LTV ratio isn’t up to snuff, all the letters in the world don’t qualify you for removal of PMI.
What’s the story? Credit history is good, property value isn’t. It’s dropped 15% since purchase, so my LTV is about 100%. I’m considering foreclosure, and trying to limit the negative impact on my credit rating by filing a letter with the bureaus explaining that they wouldn’t re-negotiate a 12% loan.
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