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What is the best method to explain a negative balance to mortgage lender?

by vivianhunter316 from Potomac, Maryland. Sep 29th 2015 Reply


James Walls (jwalls)
#31 ranked lender in Maryland - 8 contributions

Hello, Thank you for your question. First thing I'd suggest is if you just found out about the negative balance, contact your bank to see if they can forgive the overdraft and update the account. Should that not work, suggestion is honestly is the best policy. Simply state had a lapse of judgment on the balance on the previous purchase and then unfortunately used your debit card under the impression of more funds available and/or overdraft protection. State looking for a resolution with your current provider. At worst case depending on the timing, if you're able to access most recent 60 days transaction history without the negative balance shown.Please let me know if I can assist further.James WallsSenior Loan Officer | NMLS# 461947Secured Funding Corporation.com3500 Boston St., Suite 234 Baltimore, MD 21224www.securedfundingcorporation.comDirect: (443)735-9781eFax: (410)384-4260Email: james@securedfundingcorporation.com CONFIDENTIALITY NOTICE The information contained in this facsimile or electronic message is confidential information intended for the use of the individual or entity named above. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this facsimile message to the intended recipient, you are hereby notified that any dissemination, or copying of this communication is strictly prohibited. If this message contains non-public personal information about any consumer or customer of the sender or intended recipient, you are further prohibited under penalty of law from using or disclosing the information to any third party by provisions of the federal Gramm-Leach-Bliley Act. If you have received this facsimile or electronic message in error, please immediately notify us by telephone and return or destroy the original message to assure that it is not read, copied, or distributed by others.

Sep 29th 2015
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William J Acres (William_Acres)
#0 ranked lender in Arizona - 7,788 contributions

More info would be needed to properly answer your question.. Having a negative balance is a bad thing.. lenders look down on this because it show a lack of financial accountability.. and since they are getting ready to lend you a great deal of money, they want to be sure the person they are lending to is responsible.. That being said, lenders require your monthly asset statements to verify your payroll direct deposits, and down payment source. so if you have one account that is negative, then don't disclose that account on your application.. if you have already disclosed that account, then you have to provide statements, and this can be a problem if the "Statement" balance is negative.. Understand that it wont be a problem if your balance went negative throughout the month, so long as the "Statement Balance" is positive.. But if there are a bunch of overdraft fees associated with your account, then this could be a problem... isolated, one time occurrences is typically not a problem.. but if there is a pattern, then it's going to be.. talk to your mortgage broker.. he's on your side, and will help/guide you to getting this pass the underwriter.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Sep 29th 2015
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Ron Schwartz (RonSchwartz)
#70 ranked lender in Maryland - 56 contributions

to me Hi Vivian, Are you referring to a negative balance in an asset, bank or other account or a derogatory item that might have appeared on your credit report? In either case you should feel comfortable discussing this matter honestly and openly with your loan officer. The loan officer cannot be effective at helping you to achieve your financing goals without full disclosure. This sounds like a matter you should speak to the loan officer about directly. I'm happy to be of help but this might not be the best forum to discuss this matter specifically. I'm only a few minutes away if you'd like to come in for a coffee & consult with me on your situation.Ronald Schwartz, Senior Loan Officer NMLS: 47148 800 King Farm Boulevard Suite 210a Rockville, MD 20850 rschwartz@embracehomeloans.com Tel: 301-921-0070 ext.3817 Cell: 240-505-4766 Fax: 877-243-1141 Toll Free:1-800-333-3004 ext.3817

Sep 29th 2015
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