A paid defult is stopping me from getting my house HELP please

[TEAM+1]

Hi

I am wondering if anyone has ever had a problem getting a home based solely
on a paid default on their credit history and how you got around it.

In 2006 a company put a default on my credit history for $270 for an outstanding bill (which I thought was paid)
My husband and I went for a home loan and we where knocked back based on my credit history so after obtaining a copy of my file I paid the outstanding amount and went back to the bank BUT even though it is a paid default no mortgage insurer will touch us.

I have tried contacting the company and they have stated that back in 2004 (date of original bill) LAW states they only have to send ONE bill as I didn’t hear anything from them when I closed the account so I thought I was up to date.

I have contacted the ombudsman but they seam to think it's not looking good as they did follow the rules of one bill and as they where not at fault they don’t have to remove it- ("LAWS" have since changed and a company must send min 3 bills)

I have saved over 5% for my house I am a working mum who went back to work purely to get a house for my daughters and now I cant think of anything else to do

Have you been in this situation? Are you a mortgage insure who can shed some light or can you just offer advice?

Thank you if you have got to this point of my rambled post. :(

[Tam-I-Am]

In that situation, I'd go find a mortgage broker, and see what the best deal on a low docs loan you can find is, with particular care to what your break-away costs will be if you refinance with another lender down the track. After a year or so, apply to refinance with somewhere else that offers a better deal.

[TripleTime]

A defult will stay on your file for 5 years. As it was listed in 2006 youve got another 2 years to go.

[TEAM+1]

A defult will stay on your file for 5 years. As it was listed in 2006 youve got another 2 years to go.
Thank you I know it wont be removed untill 2011 but I would like to know if there is anyway of getting around it. But thanks for your comment. :)

[TEAM+1]

Thank you forgive my ignorance but what is a low docs loan and where do I go about finding out more info??

[Tam-I-Am]

Low docs is low documentation. You don't have to provide as much documentation to get one of these loans - but there are trade-offs. For example, from memory, you can only borrow up to 80% of the value of the property, they generally have a higher interest rate, etc.

We used a mortgage broker through Aussie Home Loans, he was pretty good, and a free service. Be aware that they are paid by the bank with whom they get you to apply - so there is some possibility of biased advice, however, they're upfront about all the kick-backs they receive. Information for mortgage brokers from Aussie are on their website.

I'm sure if put "Mortgage brokers" into a yellowpages search for your area, you'd come up with a few alternatives too.

[TripleTime]

Thank you I know it wont be removed untill 2011 but I would like to know if there is anyway of getting around it. But thanks for your comment. :)

Unfortunatly, there isnt anyway of getting around it :no:
In the mean time it gives you more time to save.


Thank you forgive my ignorance but what is a low docs loan and where do I go about finding out more info??

Low Doc = Low documents needed to process the loan. Mostly used by the self employed.

[TEAM+1]

Has anyone had a default removed fromt their credit file once it has been paid if so how did you do it? PLEASE HELP

[crazymuma]

I was listed after making a mess of a credit card many years ago - through commonwealth bank.

I paid the debt off - had to talk to about 6 different people though - first few said they would only accept full amount in one payment.

After it was paid off I contacted them and asked if they could remove it - 2 people I spoke to said that they couldn't and the 3rd said they would remove it for me - and they did.

Try talking to someone else within the company - or just contact the agency they listed it with and see what they say about it - there may be a way for you to have it removed through them,.

[EvangelinaOne]

Thank you I know it wont be removed untill 2011 but I would like to know if there is anyway of getting around it. But thanks for your comment. :)

You can write to the company and ask them to remove it. If you think it is worthwhile you could speak to solicitor and ask them to write a letter. I had a default that one of the banks had (wrongly) placed against and it had been there for years. I didn't even know about it till I applied for some credit and got knocked back. I wrote to the bank asking them to remove it and confirming that all money had been paid to them. Do you have proof that you have paid all outstanding money? The bank then removed the default and sent us a fax to confirm they had done so. The first person I spoke to at the bank was not interested and did not help at all. My DH had to make a couple of phone calls to try and get hold of someone who was actually willing to listen (pretty dreadful given it was their mistake).

It is worth a try. Especially if you want to get a home loan and the default is for such a small amount. You just need to get the right person who will help.

[MountainGirl]

can you get a home loan just in your partners name?

[ManekiNeko]

I suggest you contact veda advantage having said that though the company can remove veda listings but only if they were listed as a mistake. You could always threaten to take it further witht ombudsmen. I know the company I used to work fro would just usually meet demands if this was the case because the further the dispute goes with ombudsmen the more the company is fined.

[MummyNo2]

Hey there

I'm a mortgage broker & have come across your circumstances a number of times. Its really unfortunate given the amount in question.

Until the "Global Financial Crisis" the banks took a common sense approach to your predicament & overlooked any defaults under $500. Unfortunately all that changed when the mortgage insurers (who carry most of the risk) tightened their policies - & given that there is a monopoly of 2 of them it made life difficult across all of the lenders.

With respect to earlier comments in regards to lodoc lending - a lodoc loan would not be suitable for you. A lodoc loan requires a minimum of 20% deposit & because the bank does not verify income, they are actually less accepting of any adverse credit history.

From experience I know of one lender that may be able to assit. If you PM me I may be able to help you with some more information.