Not Paying a Bill Ruins Home Buying

The Effects of Unpaid Bills and Home Buying

Picture this: The time has finally come for your military deployment overseas and it is time to put life in the States on hold. It is important to make sure that all remaining bills will be paid before you leave, including a cellphone account. After the deployment is over, you are ready to return and begin life in the States again. You are set on buying a house, but a cellphone bill that you were unaware of has gone to collections and ruined your credit score, as well as your chances of buying a home.

What now? Is it possible that a bill that I never received ruin my chances of buying a home? If this unfortunate situation ever happens, here are some tips to properly deal with the situation.

1) Closely examine your credit reports
Look to see what is actually being reported. Everyone is entitled to a free annual credit report, which can show exactly what is shown. Even though a payment has been made, a collection can remain on your reports for a while after. If it is paid in full, the report should show a balance of $0 for the collection.

2) For military members, contact military legal assistance office
Active-duty military members are protected by The Servicemembers Civil Relief Act against civil and financial obligations, such as cellphone related issues.

3) Consider the alternative of “manual underwriting”
An individual will look at the applicant’s situation, rather than an automated system, allowing other factors to be considered into the credit score.

So you can get the knowledge you deserve, contact Avis Lending. We are here to provide you with the proper knowledge you need to know regarding the lending process. With offices conveniently located in Irvine, California and Lahaina, Hawaii, we are here to serve as your one-stop shop to all of your west coast home loan needs.

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