In fact, Fannie Mae says 17% of borrowers who were previously turned down for a home loan would now be able to qualify thanks to their timely rent payment history.Ĭredit scores and histories play a huge role in helping lenders decide whether to approve a mortgage loan. That difference in credit score could mean the difference between being accepted for a home loan or staying a renter. A recent Experian study discovered that of those whose monthly rent payments were included in their credit profile, 75% experienced an increase in their FICO score between 11 and 29 points. consumers have their rental history included in their credit report, but the disproportionate amount of Black and Latino Americans who have little other credit history and could benefit from the new rule. “With this update, Fannie Mae is taking another step toward understanding how rental payments can more broadly be included in a credit assessment, providing an additional opportunity for renters to achieve the dream of sustainable homeownership.”Ĭurrently, fewer than 5% of U.S. There is absolutely no reason timely payment of monthly housing expenses shouldn’t be included in underwriting calculations,” said the FHFA’s acting director, Sandra Thompson.
“For many households, rent is the single largest monthly expense.
Government-sponsored entity Fannie Mae found that 29% of Black homebuyers say insufficient credit score or credit history is the biggest hurdle to obtaining a mortgage, compared to just 18% of white consumers. In these cases, contact must be made with the appropriate agency usually in writing or in person.In an effort to bring more racial equality to the mortgage market, the Federal Housing Finance Agency (FHFA) announced recently that on-time rental payments may be used by government entities as part of the mortgage underwriting process. Other states and counties do not have such information online. This information may be searchable by address or owner name, or lists of upcoming sales may be posted.
Some states and counties have online information about foreclosures, tax lien sales and tax deed sales. Tax deed sales are the forced sale of a property at a public auction. The other method government agencies have of collecting delinquent taxes is a tax deed sale. Once this period has passed, the new lien holder may initiate foreclosure proceedings.
A tax lien sale is a sale conducted by a government agency of these liens and those that buy them must wait out a redemption period during which the homeowner may repay the lien and any interest. Tax liens are incurred by non payment of real estate taxes. In states without judicial foreclosure, statutory foreclosure allows the mortgage holder to conduct a public auction to resell the property. Under judicial foreclosure, the property is subject to auction by a county authority such as a sheriff or by an officer of the court. Depending on the type of mortgage, the property, once repossessed, may be resold by the mortgage holder without court supervision. About Foreclosures and Tax Lien Sale Recordsįoreclosure is the process of a lender repossessing a parcel of real property after the owner has failed to make the required payments as outlined in his/her mortgage.
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