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Meredith3033 · Jan 4, 2008, 03:28 PM

I am a 28 year old who is trying to obtain a mortgage on my first house. I was convicted of a felony when I was 17 and since then turned my life around. I have obtained a Master's in IT and make a nice salary. I have very little debt. I was turned down by a mortgage company because I had this felony. My question: is that legal? If I qulaify, I qualify, regardless of something that happened over 10 years ago. Please help!

excon · Jan 4, 2008, 03:56 PM

Hello M:

It may have deterred one lender, but there are bunches of lenders out there. Did you have to look for work a little harder because of your felony? Same thing with a loan. Keep searching.

excon

Fr_Chuck · Jan 4, 2008, 04:02 PM

Yes, they may turn you down for that, being a felon is not a protected class, so a lender can use that not to loan money to you.

But as noted, I did not know any lender ever even asked that or did a criminal history. In general it is your work and credit history they will look for.

life1973happened · Jan 4, 2008, 04:09 PM

No they cannot. Quite simply your records should be sealed as you were under age. Unless you have some sort of judgement owed because of the felony or something lingering out there that's owed because of it, that could be a reason you are declined. Therefore it might be quite simply, they misworded the reason for the decline. I would do what the others above me have suggested and look into further.

EIFS EXPERT · Jan 4, 2008, 04:24 PM

Absolutely not. Unless of course your mug was spotted on Americas Most Wanted.

life1973happened · Jan 4, 2008, 04:25 PM

You can also find that under Fannie Mae guidelines section 912.01 to confirm this to be the case.

excon · Jan 4, 2008, 04:30 PM

Hello again:

The Padre has it right. Exconvicts are not a protected class of people, and banks are private business's who can loan money to whom they choose.

I agree further in that I find it strange that this mortgage company found out about his felony, but they are allowed to employ any system they choose to investigate their prospective lenders.

I suggest further that many 17 year olds are tried as adults.

excon

Fr_Chuck · Jan 4, 2008, 04:39 PM

Yes, a large majority of 17 year old, depending on their crimes are charged as adults as excon mentioned. Plus we don't know that the poster did not tell them either.

Meredith3033 · Jan 4, 2008, 08:18 PM

Originally Posted by Fr_Chuck

Yes, a large majority of 17 year old, depending on thier crimes are charged as adults as excon mentioned. Plus we don't know that the poster did not tell them either.

Yes, I did tell them. They wanted an answer for the length of time that I did not work ( I was incarcerated) for three years. At first, I did not want to tell them but he said that it would eventually come out, so I was honest. I tolld him the only way it would show up is he did a background check and he told me they do not do that. I received the answer a day later. Before all this came out, he said they could pre-approve me for 175,900 based on my credit. Now I have been turned down and I will receive a written letter within 30 days of why I was not approved.

Fr_Chuck · Jan 4, 2008, 08:29 PM

If someone asks and it is not required to tell them, perhaps just say I was unemployeed

life1973happened · Jan 4, 2008, 08:33 PM

That's true but if he was put to work during those three years would he have been paying taxes and if so, you know what that means.

I have to admit I must pull out of this discussion as I have never had an issue like this come up. It's clear in that statues but like all clauses they are vague. If he was not paying taxes he could legally say he was unemployed.