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July 22 2015

Success Story - Lydia White

I had the pleasure to meet Lydia White at Operation HOPE Family Financial Freedom Fair in the City of Compton, CA. At the event, we talked briefly about her situation and about her her main goal, to become a homeowner once again.

A few weeks later, on October 28th, 2014 she came to the HOPE Inside Maywood office. After reviewing her credit report and all other financial documentation, she had two problems that would restrict her from qualifying for a mortgage. The first issue she had to overcome was a foreclosure from a few years back. During her separation/divorce she had lost her home. She explained that this was a difficult time for her because she could not meet her mortgage payments on her own. She reached out to her lender to try to get a modification on her loan, but was not successful, and under these circumstances she lost her home. However, she always held on to the HOPE she would be a homeowner once again.  

The other obstacle was a recent collection account that had appeared on her credit. She explained that it was not her account and that after her foreclosure she still managed to pay every other debt to try to preserve her credit. I did manage to dispute the account in question and was successfully removed from her credit.

Ms. White had already visited with a realtor but was told she could not qualify for a mortgage loan because of her recent foreclosure. Generally you have to wait at least five years before you can qualify for a conventional mortgage loan. I explained that under Fannie Mae guidelines, she could buy a home after 3 years of her foreclosure, especially if her foreclosure was the result of documented extenuating circumstances, which a divorce or separation could be considered.

I quickly consulted with a US Bank loan officer and put her in contact with Lori Wade at US Bank. In a matter of days, she received a pre approval for $229,000. She found a home and submitted an offer on the property and was accepted. She went into escrow and unfortunately a couple of weeks before closing escrow the underwriter would not accept her divorce as extenuating circumstance, so her loan fell through the cracks.

Ms. White was discourage, and rightfully so, however she never gave up. After talking to her realtor Dana Andrews from Modern Realty, a new lender was quickly found and Ms. White was able to secure another pre approval. A couple of weeks later Ms. White found a property in Compton and submitted an offer. Although escrow took almost 120 days to close, she eventually moved to her home on May 29, 2015.

“The wait was well worth it,” she said. I had the pleasure to visit her new home at her housewarming party and I can say I was as excited for Ms. White and her family. The Family Financial Freedom Fair was a blessing in disguise for Ms. White, that day she also met Dana Andrews from Modern Realty. Modern Realty is one of Operation HOPE’s local partners and they are often guest speakers at our first time home buyer workshops in Southern California.

"Live for Today and HOPE for tomorrow", 

Mike Lainez

Homeownership Counselor