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Senior Contributor
Posts: 3,067
Registered: ‎11-02-2009
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Re: Best Way to Remove "Account In Dispute" for Mortgage Loan

Ah, I loathe TU and dispute comments.  I have a BofA mortgage where I asked for a goodwill adjustment to some late payment notations.  They reported the account as being in dispute.  I have managed to remove it from EQ and EX, but not TU.  I spent close to year writing back and forth to BofA and TU about this saying that it was never a dispute in the first place, I acknowledge the accuracy of the information.  And if it is a dispute, I withdraw it.  No dice.

 

I haven't troubled with it in a while because it frustrated me so much, but if we are going to get a new house spring of next year, I figured I better start trying to get it resolved again.  I tried to call BofA but after getting bounced around for half an hour, the system hung up on me.  Every time I've tried TU, they tell me that BofA verifies that there is a dispute and they can't remove the comment. 

 

I am going to write to BofA again. I feel like I have a better chance with a written record.  I may also go into a branch and see what they can do since we also have our checking and some savings there.  Maybe I can talk to a mortgage broker and tell them I'd like to consider using BofA for my next mortgage but won't be able to get one if they don't get this resolved. 

 

I have a second issue with an old Citi CC account.  I disputed it years ago because I did not recognize it.  Citi said the account was mine but didn't give me any information to verify that.  I didn't know much about credit then.  I knew I didn't have the card in my possession and was concerned that it would be used by someone else, so I just asked them to close the account.  It reports Closed, Paid, Never late, but in the comments section it also says consumer disputes this account information under FCRA.  I am writing to try to have that removed as well.  It's a positive account, so I am just trying to withdraw the dispute.

 

Two questions:

 

1.  Assuming I cannot get the BofA dispute withdrawn (or at least that I cannot do so in the 6 months before I want to buy a second home), will there be any effect to me adding a consumer statement to my report saying that I do not dispute the accuracy of any of the information for this account?

 

2.  For the Citi CC account, since the balance is $0, does the dispute even matter.  Someone mentioned above that the issue with disputes is they need to be able to verify your DTI.  Since the account is closed with a $0 balance, is it even an issue?

 

Thanks in advance. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Super Contributor
Posts: 8,360
Registered: ‎09-28-2007
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Re: Best Way to Remove "Account In Dispute" for Mortgage Loan

1.  The consumer statement won't negate the fact that you have an account in dispute

2.  Disputed accounts always need to be stopped for Fannie & Freddie, for FHA financing there are different requirments:

 

If the credit report reveals that the borrower is disputing any credit accounts, Manual Downgrade of a TOTAL Scorecard Approve/Accept recommendation is not required if:

 

1. The disputed account has a zero balance

2. The disputed account is marked as “paid in full”, or “resolved”

3. The disputed account is both

a. less than $500, and

b. more than 24 months old, based on the date of dispute

Senior Contributor
Posts: 3,067
Registered: ‎11-02-2009
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Re: Best Way to Remove "Account In Dispute" for Mortgage Loan


ShanetheMortgageMan wrote:

1.  The consumer statement won't negate the fact that you have an account in dispute

2.  Disputed accounts always need to be stopped for Fannie & Freddie, for FHA financing there are different requirments:

 

If the credit report reveals that the borrower is disputing any credit accounts, Manual Downgrade of a TOTAL Scorecard Approve/Accept recommendation is not required if:

 

1. The disputed account has a zero balance

2. The disputed account is marked as “paid in full”, or “resolved”

3. The disputed account is both

a. less than $500, and

b. more than 24 months old, based on the date of dispute


Thanks.  I'm almost certainly going FHA.  I think I have to since I have a 120 day late on my mortgage.  It will three years old as of January and my understanding is that Fannie and Freddie require longer after a 120 day late/foreclosure.  In any event, since I'm going FHA, it sounds like the Citi account isn't anything to worry about.  Maybe I won't send that letter.  They could potentially delete the account and I'd lose the positive history.

 

As for the BofA account, I'll have to keep wrestling with them.  It's my mortgage, so not a $0 balance/paid in full, and definitely not less than $500 (wouldn't that be nice).  Of course, if I sell before I buy, which is what I was thinking of doing, it would be marked paid in full.  I just hope they remove it.  It is unbelieveable to me how obtuse this is.  Saying that you don't dispute something should end it right there.  

 

Do you agree that if I'm resolved to go FHA, I should leave the Citi account alone?  It reports as Paid, Closed, Never late.  The balance is $0.  It was closed back in 2005. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Super Contributor
Posts: 8,360
Registered: ‎09-28-2007
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Re: Best Way to Remove "Account In Dispute" for Mortgage Loan

I agree, on a mortgage with a 120 day late I am pretty sure the underwriter would want that account out of dispute unless you have record from the creditor it was indeed paid on time and it just hasn't updated to the bureaus.

 

If an account meets any of the 3 requirements above, and it is in dispute, the dispute will not have to be ended in order to take advantage of FHA's automated underwriting approval.  An account that is "paid [in full]" would meet #2.

Member
Posts: 8
Registered: ‎08-13-2007
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Re: Best Way to Remove "Account In Dispute" for Mortgage Loan

Hello all,

 

I've been reading this thread and it has great information.  My wife has about four accounts in disputes that we need to have the disputes removed.   Shane, can you advise if you are still having good outcome when calling the bureaus?  I'm looking to take this route since our mortgage company will not go forward without having these disputes removed.  Any help is appreciated. 

 

J


Starting Score: EQ 593, TR 577, EX 584
Current Score:
Goal Score: 760

EQ 633,TU 601, EX 620
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Super Contributor
Posts: 6,593
Registered: ‎04-07-2008
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Re: Best Way to Remove "Account In Dispute" for Mortgage Loan

Can this comment 'Account in dispute' affect FICO scoring? As in account with these comments would not be counted towards the FICO?

 

I have two BoA account that have been paid off since early this year. The dispute I had with BoA was about May of last year but on my CR's they are still listed as being in dispute.

 

Thats why im wondering if I get those comments removed if I could possibly gain some points possibly.

 

 




Senior Contributor
Posts: 3,889
Registered: ‎05-24-2011
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Re: Best Way to Remove "Account In Dispute" for Mortgage Loan

I'll just chime in here in case anyone is wondering.  The cover sheet of my credit report pulled my the LO says "Accounts in Dispute" in bold.  It is definitely something those underwriters are looking at.  Good Luck Walt!  Any luck lately?

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Senior Contributor
Posts: 3,067
Registered: ‎11-02-2009
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Re: Best Way to Remove "Account In Dispute" for Mortgage Loan


Booner72 wrote:

I'll just chime in here in case anyone is wondering.  The cover sheet of my credit report pulled my the LO says "Accounts in Dispute" in bold.  It is definitely something those underwriters are looking at.  Good Luck Walt!  Any luck lately?


I haven't had a response yet from the last letter I sent.  If I don't hear something soon, I'll write again.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Member
Posts: 8
Registered: ‎08-13-2007
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Re: Best Way to Remove "Account In Dispute" for Mortgage Loan

[ Edited ]

My wife  just called both EQ, and EX at the numbers Shane provided.  EQ, took the dispute off right then and there.  Ex was a little more difficult, but they said they would remove the dispute and send my wife a confirmation e-mail.  What's interesting is, Ex show four disputes on her credit report, but when she talked to the rep, she said they only saw one account in dispute and that's the one they would be removing.  Any thoughts anyone as why that would be?


Starting Score: EQ 593, TR 577, EX 584
Current Score:
Goal Score: 760

EQ 633,TU 601, EX 620
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Senior Contributor
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Registered: ‎11-02-2009
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Re: Best Way to Remove "Account In Dispute" for Mortgage Loan


Walt_K wrote:

Booner72 wrote:

I'll just chime in here in case anyone is wondering.  The cover sheet of my credit report pulled my the LO says "Accounts in Dispute" in bold.  It is definitely something those underwriters are looking at.  Good Luck Walt!  Any luck lately?


I haven't had a response yet from the last letter I sent.  If I don't hear something soon, I'll write again.


Just wanted to update. Finally resolved. :smileyhappy:  Got a letter from BofA on Friday saying that they were going to remove the comment and that they apologized for the inconvenience.  My TU Quarterly Monitoring report just came up and the comment is removed. One step closer to being able to get a new mortgage next year.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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