Approve/Eligible vs. Refer/Eligible

Anonymous · ‎11-17-2015

Is it possible to get an approve/eligible DU recommendation with a chapter 13 bankruptcy that is over 6 years old?

We have a bankruptcy from 8/2009 that is set to fall off in 2016. Is this what is causing us to get a refer/eligible?

Absolutely no late payments since the filing. Credit is re-established. Current revolving utilization is less than 20%. One medical collection though for $700.

Thoughts?

StartingOver10 · ‎11-17-2015

@Anonymous wrote:
Is it possible to get an approve/eligible DU recommendation with a chapter 13 bankruptcy that is over 6 years old?

We have a bankruptcy from 8/2009 that is set to fall off in 2016. Is this what is causing us to get a refer/eligible?

Absolutely no late payments since the filing. Credit is re-established. Current revolving utilization is less than 20%. One medical collection though for $700.

Thoughts?

The only thing that I think (and this is just my opinion only) that might have triggered it is the collection after your Bk.

Hopefully you have heard back from underwriting about this.

Anonymous · ‎11-17-2015

I am still waiting to hear back. Is it possible to get an underwriter to approve with the medical collection. Collection is from mid 2011. Everything else should be fine.

StartingOver10 · ‎11-17-2015

@Anonymous wrote:
I am still waiting to hear back. Is it possible to get an underwriter to approve with the medical collection. Collection is from mid 2011. Everything else should be fine.

I think so, but maybe you want to use a different reason for not paying medical bills. I know they are a PIA, but hopefully your reason will be along the lines of 'slipped through the cracks' type.

Don't pay it now. It might trigger a decrease in your score. If the u/w wants it paid, see if you can do so at closing (on the closing statement) if possible. Hopefully the u/w won't require it to be paid.

DallasLoanGuy · ‎11-18-2015

i see a LOT of files 'refer' and the findings specifically mention the bk/fc as the reason why

i have had others approve.

all files are different.

i bet the collection tipped the file

Retired Lender

Anonymous · ‎11-19-2015

I am finding more and more about the collection account and it is really making me angry.

We have one post BK collection - and it is a medical collection. It is a collection account that the creditor re-aged. I am working on that right now.

http://ficoforums.myfico.com/t5/forums/replypage/board-id/loans/message-id/182823#

Collection agencies are dirty..... Luckily it was for child birth services, which we can prove we didn't have at the time the bill was sent to collections.

Child birth in 2008 - sent to collections in 2012 with a original date of 2012. If they had kept June, 2008, it would be more than 7 years. Right now - it's 4 1/2.

StartingOver10 · ‎11-20-2015

When did you file BK, before or after the medical event?

If you filed BK before, then challange the collection based on the re-aging. I would complain to the CFPB too - they really jump on CA's re-aging accounts.

If you discharged the debt (filed Bk) after the medical event/bill and then it was sold to the CA, they have no standing to put that debt on your report. It is a violation of the discharge injunction. Speak to your Bk attorney, sometimes a letter from the attorney will work. Sometimes you have to actually sue the CA - but the CA would not only owe you money (for the violation) they would have to pay your attorney fees. Some Bk attorney's are better at this than others. If your attorney won't handle it find a consumer attorney that is familiar with it. The date of the medical service and the Bk filing date is the critical point in determining if this is a violation or not.