topic Re: HELP! New collection popped up and dropped score 60 pts! in Mortgage Loans

UPDATE! HELP! New collection popped up and dropped score 60 pts!

jjmtmj126 — Mon, 04 Feb 2013 22:39:46 GMT

My husband and I are just beginning the home buying process again after 1 year ago when we got 3 days till closing and were DENIED. All our credit cards are paid off, we have $20,000+ for down payment. DH score is 670 and mine WAS 660...that is until 1 week ago when a new collection from an old cable bill I had in 2010 (which I was NOT aware of) for $67 popped up on my credit report, showing on all 3. My score dropped down to 593!!!!!

I immediately paid it, but the damage was done. I called the cable company to see if they could remove it, asked the collections company if they could remove it, both said no.

So 2 questions.... #1, will my score go up now that it says "paid in full"? #2, when going for an FHA loan how bad will this new collection hurt us? I realize I'll have to wait now until my score goes back up......but I'm hoping in a few months it'll be over 620 and we can start the process.

UPDATE: After speaking to THREE different lenders, each one said having this new collection on my credit report will NOT hurt my chances of getting a loan, FHA or conventional! The only thing that is now a factor is my score.....I'm hoping I'll be able to get it back up. It's at 624 right now and I just have to get it up to 640 for FHA..... So THANK GOD we don't have to wait a year due to some stupid $67 bill!

Re: HELP! New collection popped up and dropped score 60 pts!

jjmtmj126 — Fri, 01 Feb 2013 20:09:12 GMT

I should also mention... in case this has any barring... our BK cleared in July 2009.

Re: HELP! New collection popped up and dropped score 60 pts!

Mike_B03 — Fri, 01 Feb 2013 20:13:47 GMT

Why did you end up being denied a year ago with 3 days left until closing?

Re: HELP! New collection popped up and dropped score 60 pts!

tooleman694 — Fri, 01 Feb 2013 21:03:53 GMT

Oh man..........................

This is probably gonna hold you back about a year, unless your other half could afford to take the loan out on his own.

This is a complete joke, a 67 dollar cable bill from 3 years ago stopping you from buying a house. This credit stuff is some complete bull crap sometimes I swear to god

Re: HELP! New collection popped up and dropped score 60 pts!

MovingForward_2012 — Fri, 01 Feb 2013 21:25:15 GMT

Yes that is crazy!!! I am also curious why you were denied 3 days before closing?

Your score really tanked from that collection. Typically you have to wait 12 months from the Date of First Delinquency to be approved. But if you get your score back up to qualifying range, the UW might let it pass since it is only a $67 collection that has been paid. You can include in your letter of explanation that you were unaware until it was reported to your credit reports.

The plan of action; however, should be to continue to work to get that collection deleted..this will reap the best approval odds.. As long as that collection is on your report, your score will increase very slowly as that collection is like a weight pulling your score down. The other option, as tooleman said, is to see if your husband can qualify on his own for the home you both want.

Re: HELP! New collection popped up and dropped score 60 pts!

tooleman694 — Fri, 01 Feb 2013 21:29:52 GMT

Last year I got denied they day of closing.

We were gonna close in Augest but because my Wife had made a late payment in March I was denied. This was on a non purchasing spouse, she was not on the loan and they still denied me based on her credit.

When we went back into UW on the new house, one of the conditions was that we could not close till my Wifes late payment was one year old.

Re: HELP! New collection popped up and dropped score 60 pts!

jjmtmj126 — Fri, 01 Feb 2013 21:42:33 GMT

We went through the whole process and everything was fine.....but at the last minute they said they wanted my hubby to have more time on the job. He was at his current company for 9 months..... And his previous employer for 2.5 years, same line of work. So fast forward to now...almost a year later and in a better position financially, both our scores went up....they were at 640ish.

I really find it hard to believe that with $20,000 down we will not qualify because of a STUPID $67 collection from 3 years ago. That's just crap!!!!!!!!

Re: HELP! New collection popped up and dropped score 60 pts!

jjmtmj126 — Fri, 01 Feb 2013 21:42:57 GMT

So that being said.......how can I get that collection removed?

Re: HELP! New collection popped up and dropped score 60 pts!

MovingForward_2012 — Fri, 01 Feb 2013 21:47:02 GMT

Wow! Denied because of what happened on a non-qualifying spouses credit?!? I didn't even know they did that! My husband is primary on the telephone/Internet bill but I pay it because he is a stay at home Dad. I also pay all the other expenses, which are in my name. He isn't included on the loan. Yikes! Now I'm worried that they could come up with some issue out of thin air involving my husband, I hope not!

Re: HELP! New collection popped up and dropped score 60 pts!

tooleman694 — Fri, 01 Feb 2013 21:51:34 GMT

If you have a copy of the credit report

Post that collection, editing out personal info and we can take a look for violations. That is the easy way to get it to go bye bye.

Re: HELP! New collection popped up and dropped score 60 pts!

Mike_B03 — Fri, 01 Feb 2013 21:53:35 GMT

jjmtmj126 wrote:
We went through the whole process and everything was fine.....but at the last minute they said they wanted my hubby to have more time on the job. He was at his current company for 9 months..... And his previous employer for 2.5 years, same line of work. So fast forward to now...almost a year later and in a better position financially, both our scores went up....they were at 640ish.

I really find it hard to believe that with $20,000 down we will not qualify because of a STUPID $67 collection from 3 years ago. That's just crap!!!!!!!!

So 3 days before closing, they denied it because your husband's job history? That seems insane, didn't they already know his job history when you started the loan process?

Was it a scheduled closing date...like you had "clear to close" and then it got denied, or it was just a date that was put on a the sales contract by the realtor at the beginning when you signed the sales contract?

Re: HELP! New collection popped up and dropped score 60 pts!

MovingForward_2012 — Fri, 01 Feb 2013 21:57:48 GMT

You need to send a good will letter. Before you paid it, you should have sent a pay for delete letter and not pay until you got something in writing from them saying they will remove x from your reports after payment of x. PFDs are easier than GWs because the collection agency wants their money and are willing to remove the account if they get it. Once they get your money, they are less likely to want to work with you. But GWs can be executed successfully. So I would go to the rebuilding forum and ask what is the best approach to take when you want to goodwill a collection agency, and they will be able to help you. Some may have worked with the collection agency that you are currently dealing with and they can tell what their plan of attack was and then you can try their method yourself and see if it works! Best of luck to you. I truly hope everything works out. Stay positive and determined! :-)

Re: HELP! New collection popped up and dropped score 60 pts!

jjmtmj126 — Fri, 01 Feb 2013 22:05:02 GMT

Here is the info about the collection that came on my report: Thank you for looking into this!

Experian®	Equifax®	TransUnion®

Account Name	ENHANCED RECOVERY CO L	ENHANCED RECOVERY CO	ENHANCRCVRCO
Account #	6991XXXX	6991XXXX	6991XXXX
Account Type	Collection Department / Agency / Attorney	Collection Account	Collection Account
Balance	$67.00	$67.00	$67.00
Date Opened	12/1/2012	12/1/2012	12/18/2012

Re: HELP! New collection popped up and dropped score 60 pts!

jjmtmj126 — Fri, 01 Feb 2013 22:06:47 GMT

Here is the specific information on each account you've opened, past and present. Positive information about your accounts stays on your report indefinitely. You'll also find creditor contact information conveniently located with each account – to help you resolve any issues.

Sort By Status

Name Account Type Past Due Balance Date Opened

ENHANCED RECOVERY CO L

Potentially Negative

Close Account Details

800-496-8941

8014 BAYBERRY RD

JACKSONVILLE, FL 32256

Experian®

Equifax®

TransUnion®

Account Name

ENHANCED RECOVERY CO L

ENHANCED RECOVERY CO

ENHANCRCVRCO

Account #

6991XXXX

Account Type

Collection Department / Agency / Attorney

Collection Account

Balance

$67.00

Date Opened

12/1/2012

12/18/2012


Account Status	Closed	Closed	Open
Mo. Payment
Past Due	$67.00
Payment Status	Seriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department	Unpaid	Collection account
High Balance
Limit
Terms	1 Month
Comments		Unpaid	Placed for collection

24 MONTH PAYMENT HISTORY

2011

2012

2013

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

Experian

Equifax

TransUnion

Re: HELP! New collection popped up and dropped score 60 pts!

tooleman694 — Fri, 01 Feb 2013 22:08:58 GMT

See that line where is says

Terms 1 Month

That is ILLEGAL!!

Fire out disputes targeting that. You can't have a term on a collection.

It will go away.

Re: HELP! New collection popped up and dropped score 60 pts!

MovingForward_2012 — Fri, 01 Feb 2013 22:13:13 GMT

I would start off by sending a GW letter to the address shown on your credit report and call them up in 2 weeks to discuss it with them.

Re: HELP! New collection popped up and dropped score 60 pts!

jjmtmj126 — Fri, 01 Feb 2013 22:13:31 GMT

SERIOUSLY???? It's that easy???

So what do I say in the dispute? Exactly what you wrote? That it's illegal to have a term on a collection? If so... you are one AMAZING person and I'd owe you so much!!!!!!!!!!!! :)

Can I do the dispute AND send them a GW letter? Will the...

jjmtmj126 — Fri, 01 Feb 2013 22:23:58 GMT

Can I do the dispute AND send them a GW letter? Will the agency know that I tried to dispute it? I'm wondering if I dispute it and then it does not get removed if the collection agency will be "mad" and not help me at all.

I'm new to this so excuse my ignorance.

Re: HELP! New collection popped up and dropped score 60 pts!

tooleman694 — Fri, 01 Feb 2013 22:28:18 GMT

[ME]

[EQUIFAX]

Dear Sir or Madam,

This letter is a formal complaint that you are reporting inaccurate credit information on my report #xxxx. Because of the mistakes on my credit report, I was wrongfully denied credit recently for a home loan. My social security number is xxxxx and my current address is listed above. My last address was xxxxx. My contact number is xxxxx.

The following information is incorrect and therefore needs to be corrected or deleted from the report as soon as possible:

ENHANCED RECOVERY CO L (Account Number):

-This account is showing to have a term of one month. This account is in violation of the FDCPA Section 807(10) prohibits the "use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer."

According to Section 611 of the Fair Credit Reporting Act, I am requesting that these items are investigated and deleted from my report as soon as possible. Also in accordance with the FCRA, please FULLY investigate my disputes and verify with the furnisher of information, not just your own data. Be advised that the description of the procedure used to determine the accuracy and completeness of the information is hereby requested as well, to be provided within 15 days of the completion of your reinvestigation.

Re: Can I do the dispute AND send them a GW letter? Will the...

Mike_B03 — Fri, 01 Feb 2013 22:29:23 GMT

Nice letter! That could certainly scare them into remove it, I like! :D