topic Re: Disputes removed Issues in Mortgage Loans

Disputes removed Issues

Rbarrera83 — Wed, 10 Aug 2011 03:40:02 GMT

Hello board, I have a few concerns and issues that just occurred today that are stressing me out. I got a pre approval and my LO told me everything was good to go to look for a home and go into a contract. I got a contract going and everything goes well and smooth. We get a few conditions from my underwriter and I meet my side of the terms. Well one of the terms my LO and her LP were given was to remove 1 dispute account I had on my CR. It couldn't say indispute, well their credit people got to work and today my credit alerts go off and notify me of changes. Equifax drops from a 671 to 615. Trans drops from 641 to 575. Only thing that changed was a comment that said in dispute. I talked to my LP and LO and they told me they haven't heard from their credit person and till than we can't jump over our heads. I'm stressing because my closing date is Friday. I don't know why my scores would drop so far down. The issue is a 5000 dollar collection that mcm is claiming I owe but I have no clue on the mAtter. It is a collection they just bought in feb from bank of America and I never banked with them. They have all my info thou. I see this as a issue going back to UW. This is a Fannie Mae purchase too and I read some of comments about FHA and Fannie Mae. Is this workable still or am I going to lose my investment?

Re: Disputes removed Issues

Booner72 — Wed, 10 Aug 2011 03:57:35 GMT

So you passed underwriting except the disputes - now the disputes are gone as they directed you to do - now your scores are lower because the dispute comments are removed?

It is my understanding that if scores drop between first pull and final pull it does not matter as long as there is no new credit/new accounts/new collections etc. I've asked about this repeatedly because my AAoA is about to take a nosedive when student loans drop off any minute.

Also I'm assuming you are using FAKO scores because SW wouldn't catch this in my experience on EQ. Your scores might not be as bad as these alerts are saying they are.

What comments have you read about Fannie and FHA that you are concerned about?

Re: Disputes removed Issues

smackmaster2 — Wed, 10 Aug 2011 04:05:28 GMT

when you dispute an item, the effect is that for most items, that collection no longer hurts your score until they prove that you owe the money and that the collection is valid. Once they validate or the dispute comments are removed, your score goes back to where it was before the dispute.

Re: Disputes removed Issues

TC12 — Wed, 10 Aug 2011 04:07:57 GMT

Your score likely dropped because the accounts are currently "in dispute." I believe accounts that are being disputed are not factored in your score, and that is where they drop came in. Once the dispute is resolved, your score should return to its original number.

I don't really understand the $5000 loan issue. Is this a new item that showed up? Or is this the account that had the "consumer disputes" comment?

Re: Disputes removed Issues

llecs — Wed, 10 Aug 2011 04:17:29 GMT

Unfortunately (or fortunately depending on how you look at it), portions of an OC account under dispute will not be scored by FICO. Among these are the balance, the CL, and the payment history. Other items like AAoA, scoring bucket, mix of credit, acct age, etc. including CAs and PRs, are not removed or impacted by a dispute.

Are you sure MCM was the only TL you asked the CRAs to remove the dispute on? Were there others? Did anything change at all on your reports? Looking at your FICO report, does utilization appear in the pos/neg reasons? Does your math add up per util (very important!)?

Turning to FICO scores...are you sure your lender is pulling Beacon 5.0 which is the same EQ FICO as found on here? And are you sure they are pulling TU98, which is the same TU FICO as found on here?

Are you getting your scores from the same source as your credit alerts?

I'll explain further, but without wasting white space on this page, I'm working 3 theories (Booner hit on one) which coincide with the sets of questions. Answer them and I'll elaborate and throw in a way to get MCM off safely and quickly.

Re: Disputes removed Issues

Rbarrera83 — Wed, 10 Aug 2011 13:31:29 GMT

To answer you all.

MCM began to claim on my report on Feb/2011. Stating they were collecting for BoA, stating that i ower like 4.5k to them. I dont know anything about the account. Somehow they got all my information(Social,Address,Phone). Nonetheless. Anyhow.... When they first pulled my credit, a company called ONE SOURCE CREDIT did a pull and they told me i had a middle score of 645 or something and i was in good shape. I need to get clear to close from UW, but one of the conditions was to remove the disputes and rerun my credit to make sure they were gone and run me through the system again and thats all.

I got these alerts yesterday regarding changes. All 3 bureaus removed the comment or dispute, This is what it used to state on experian:

Status: CLOSED

Payment Status: No Status

Balance: -

Comments: Account in dispute-reported by subscriber.

Now it says:

Potentially Negative Closed

Payment Status:Seriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department

Balance: 5094

Comments: -

Status: CLOSED

Equifax: Reads Negative

Comments: Collection Account
Balance: 5094

TU:

Only changes made were the comments. it no longer shows the: Account information disputed by consumer, meets FCRA requirements as it did before. It also read the balance with them and that stayed the same.

Those are the only changes made on my reports. I'm getting my soft pulls from Equifax.com ; Transunion.com(TRUECREDIT), Freecreditreport.com. I know that TU/FREECREDIT are Vantage/Plus Scores and those arent accurate compared to the hard pulls. But i know everytime they have pulled a hard pull, Equifax always has been accurate as what i have.

My LO/LP have told me they were waiting for their Credit Departs to do the final pull and that they didnt have it yet and we couldnt jump ahead of ourselves. I noticed this morning this pull was made last night. So they should have answers for me today. They use a company called INTERLINCMORT/ONESOURCECO. I'm worried because i know Fannie Mae requires a final pull and i believe scores must be same as first pull. Not sure if this is true or not.

Re: Disputes removed Issues

Rbarrera83 — Wed, 10 Aug 2011 13:42:30 GMT

Booner72:

There is no new credit/new accounts/new collections. Everything remains the same as it was before from what i can review in my reports from all 3 bureaus. The only thing i can notice is that before there was no balance as it was in dispute for EQ and EXP, now they have a 5092 dollar amount. TU had it all this time. So not sure what happened.

Re: Disputes removed Issues

Booner72 — Wed, 10 Aug 2011 15:12:12 GMT

I don't think that's true that Fannie Mae requires the scores to be the same. My loan is thru Academy Mortgage and they are under "Fannie Mae". As I've indicated, ive talked to my LO a thousand times about this. She says scores are often lower because of inquiries, etc. They aren't looking at the score (well they are but they are looking at the report to see about what's on it).

Hopefully you find out today what is going on. This is really stressful and you have my empathy.

Re: Disputes removed Issues

Booner72 — Wed, 10 Aug 2011 15:14:04 GMT

PS: That was a pretty recent collection 2/2011, and if you made it this far I think you will be okay. I always thought a person had to have 12 months of clean credit to get a loan. You must be okay if you made it through automated underwriting and then for the most part, through the human underwriter (aside from the dispute).

Re: Disputes removed Issues

Rbarrera83 — Wed, 10 Aug 2011 15:22:46 GMT

Booner72:

Thanks, it is very stressful to see the score drop the way it did. MyFico TU score is actually a 598. From what i show. I don't know what will happen and i am so close to closing too. This is the reason i came and asked because i am so stressed about the drop. I still havent heard from my LO or LP. I hope to hear something soon.

Well, hopefully this isnt a issue. Thank you.

Re: Disputes removed Issues

Rbarrera83 — Wed, 10 Aug 2011 18:04:02 GMT

Spoke with my LO and it seems my mid score is the 615. They can no longer get the AUS approval that the underwriter conditions. We are shocked that after a rapid rescore my cs would drop 50 points. I dont have a long history of credit which has 12'months of history or rental. Manual approval requires active tradelines which I dont more than 2. I don't have many options at is point. EQ told me it could change in a few days due to it being a rapid rescore but hy weren't sure.

Re: Disputes removed Issues

Booner72 — Wed, 10 Aug 2011 18:37:06 GMT

So what is going to happen, do you know yet? Do you mean that you did not get approved through the automated system?

Re: Disputes removed Issues

Rbarrera83 — Wed, 10 Aug 2011 19:09:42 GMT

LO told me that the conditions were to remove that Dispute comment and for them to Rerun my Credit so it would be removed. I assume they did a Rapid Rescore because they got that done in 2-3 days. With my new scores, i dont not pass the AUS which i assume iis the Automated Underwriter System? THat was the requirement. She said i dont have many options because Manuel underwriting would be worse because i do not have many Active Tradelines. At this point i could extend my contract and hope my scores go back to normal. Only reason it may go up is because EQ told me sometimes this happens with Rapid Rescores. They need to rescore it correct by Verifying but they didnt give me a 100% grantee.

So all i can do is, Extend contract. Try to fix my credit this way. Maybe Settle with Them and get the points back BUT we are running a credit smiulator before we do that. OR last have my mother be a co borrower.

What else can i do ?

Re: Disputes removed Issues

Booner72 — Wed, 10 Aug 2011 19:47:44 GMT

AUS is automated underwriting, yes.

Could you become an authorized user on your mother's credit cards to help your tradeline history? It might be worth looking into.

Is your mom willing to be a co-borrower? How would that make you feel about owning your own home? Is this something you want or would you rather wait to do it w/o her help?

Unfortunately, besides getting some AU accounts going and building up your own credit with time, I don't have any other ideas - hopefully someone else will soon.

Re: Disputes removed Issues

Rbarrera83 — Wed, 10 Aug 2011 20:06:12 GMT

Ive been working on it bro... The issue is, my father and i have the same name, Im III he and jr. Many of his credits have come to my credit reports. I have gotten a few removed. SOME i had to pay and settle with giving me a headache. He refused to assist me by removing them or contacting them. This one issue doesnt belong to me. I have a secured credit card which has only had about 5 month of history and its good. I have a few closed accounts that were paid off. Thats about it.

My mother may be a co-borrower, its been discussed. But i may be out of luck on this.

Re: Disputes removed Issues

Lusion — Thu, 11 Aug 2011 05:43:52 GMT

With all due respect but something doesn't sound right on your lenders part and the credit company they are using. I recently closed and I too had to have disputes removed from my credit report. My lender used Credit Technologies and they submitted to the agencies the request to remove the disputes and once they received notice they were removed they did a rescore and my middle score jumped up 30 points to where we needed it to be to get an automated approval and move forward to submiting to USDA. You need to crack your lenders because it dropped due to their vendor and not because of anything you did. They could have easily have gotten you to write a letter explaining the dispute instead but they opted to do it the hard way and now you're the one suffering.