Best Way to Remove "Account In Dispute" for Mortgage Loan

[Anonymous]

The phone number Shane lists on the first page of this thread is good for Experian however the department you need to ask for is "Special Services".

[Anonymous]

I worked with a credit repair company and of course they disputed EVERYTHING.  I faxed and am going to mail a letter to TU I faxed it Attn Special Handling dept, we will see what happens.  EX also has disputes on my account but NONE through EQ, which is at least helpful now that I don't have to conact them.  I am going to mail the EX one, does anyone have a fax number for them?  I don't need them done right away, but I am hoping to apply for a mortgage in the next couple of months...

[Anonymous]

Hi,

I've read through most of this thread, and I'm still a little confused on why it matters if your record has an account in dispute.

I have a mortgage preapproval through 5/3 bank.  I also just happened to pull my yearly CR yesterday.  I saw that "insurance delay", was a drop down choice to dispute a medical bill.  It is an old collection, that I foolishly paid.  Anyway, it's done, reported paid, etc.  I disputed it.  So now, I gather, that this is going to show up on my report and cause ME a problem?  Why is that?  If you dispute something, why would it make you be in a worse situation?  Had I known that, I would not have done it, and just taken the credit hit.

If it matters, I am preapproved for a mortgage on a second home (already own one), have a credit score of around 690, and am getting a conventional mortgage.  Should I drop these disputes now, before they show up on my credit record?  I'm confused.

Thanks,

Stacey

[Anonymous]

Noob here . Quick question, how do you determine the exact date of the dispute (I don't remember)? I have CA dispute with the following information..

Status as of            Jan, 2012
Date opened [?]            Jul, 2010
Date of last activity [?]    Jun, 2007
Largest past balance [?]    $188
Account Type [?]        Open Account
Account holder [?]        Individual
Industry            Factoring Companies

I am trying to determine if it meets ShanetheMortgageMan's requirement #3. Thanks.

"3. The disputed account is both
    a. less than $500, and
    b. more than 24 months old, based on the date of dispute"

[Anonymous]

Thank you so very much for sharing all of this information.  I was able to search for Dorothy and found info online that gave her and Diana's  direct phone numbers!  I just called at 1am and left a msg for Dorothy.  I am praying that she is able to assist me also.  This poor woman is probably over worked and deserves a nice gift.  I was able to get her last name so if anyone wants so that they can send her a thank you letter etc just PM me.  

[Anonymous]

I just wrote an email to one of the executives at TransUnion in hopes he will help get a comment removed.  I will keep you guys updated. 

[ShanetheMortgageMan]

So FHA is updating it's guideline on when disputed accounts impact the loan application.  It was released in the recent mortgagee letter at http://portal.hud.gov/hudportal/documents/huddoc?id=12-03ml.pdf.

Anyway the new guidelines are below, but essentially it is saying that if disputed account balances are $1k or more OR less than 2 years from the date of last activity (DOLA) then the loan will need to be manually underwritten - that means you do not get the assistance of an automated underwriting approval to aid the underwriter in the decision of approving your loan.

If the Automated Underwriting System using the TOTAL Mortgage Scorecard rates the mortgage loan application as an Accept, the mortgage application will no longer be referred to a DE underwriter for review due to disputed accounts, as long as these accounts meet both of the following conditions:

1. The total outstanding balance of all disputed credit accounts or collections are less than $1,000, and
2. Disputed credit accounts or collections are aged two years from date of last activity as indicated on the most recent credit report.

If the borrower has individual or multiple disputed credit accounts or collections with singular or cumulative balances equal to or greater than $1,000, the accounts must be resolved (e.g. payment arrangements with a minimum three months of verified payments made as agreed) or paid in full, prior to, or at the time of closing. The lender must obtain documentation supporting the payment arrangements or that the debt has been paid off. The payments arranged for the accounts must be included in the calculation of the borrower’s debt-to-income ratios.

Disputed credit accounts or collections resulting from identity theft, credit card theft, or unauthorized use, etc., will be excluded from the $1,000 limit under the terms shown below. The mortgagee must provide in the case binder, a credit report or letter from the creditor, or other appropriate documentation, to support that the borrower filed an identity theft or police report to dispute the fraudulent charges. Mortgagees must provide documentation in the case binder to show all disputed or collection accounts are resolved, verified as not a debt to the borrower, arrangements made for payment, or paid in full.

[bbb3601]

so for us slow people.......if I just paid off a collection on 2-14-12 and as of lets say 3-1-12 reports 0 balance and I have dispute comment they need to be removed?

[ShanetheMortgageMan]

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@bbb3601 wrote:

so for us slow people.......if I just paid off a collection on 2-14-12 and as of lets say 3-1-12 reports 0 balance and I have dispute comment they need to be removed?

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If you don't want to be manually underwritten & you are applying for FHA financing, and if the date of last activity is within the past 24 months of the credit check, even with a $0 balance, then yes the dispute would need to be removed and credit re-checked afterwards.

[bbb3601]

assuming scores were in line would it really matter if one went to manual? just asking as this process is so confusing.