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Close to underwriting, Collection account shows in dispute status.

New Contributor

Close to underwriting, Collection account shows in dispute status.

Just wondering if anybody has had to deal with this.. we are 3 weeks from closing. The loan officer says that there is a collections account that shows in dispute status... which is odd, because I never disputed it. I did ask the CA to verify the debt, which they did but never disputed.

 

I am prepared to call the CRA's tomorrow, curious on what to expect? Do they handle this with ease? Or should I expect a battle? and is it done quickly?

3 REPLIES
Valued Contributor

Re: Close to underwriting, Collection account shows in dispute status.

Expect a huge battle if you do it yourself.

 

Would be much easier if your LO can do a rapid rescore for you.

Valued Contributor

Re: Close to underwriting, Collection account shows in dispute status.


leesa88 wrote:

Just wondering if anybody has had to deal with this.. we are 3 weeks from closing. The loan officer says that there is a collections account that shows in dispute status... which is odd, because I never disputed it. I did ask the CA to verify the debt, which they did but never disputed.

 

I am prepared to call the CRA's tomorrow, curious on what to expect? Do they handle this with ease? Or should I expect a battle? and is it done quickly?


This is why its showing as a dispute....you asking them to verify is basically the same as saying you dispute the legitimacy of the CA or the debt in the eyes of the CA. If the CA has verified the debt you should see if the can update the CRAs to omit the dispute notation and after that is done have the LO do a RR. I'd say you have a hill to climb but if you may just need a LOE for the CA you can find a lot of good info on this topic here

http://ficoforums.myfico.com/t5/Mortgage-Loans/FHA-Disputed-Accounts-amp-Collections-UPDATE/td-p/145...

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New Contributor

Re: Close to underwriting, Collection account shows in dispute status.

Well I am shocked how it turned out.. called the CRA's this morning. they all basically said it's not their problem, call the CA.

Called the CA, they said it needs to be paid before they will do anything.

Drove down to their office to pay them, they took payment of course, and gave me back a letter stating they will DELETE it! and he faxed the deletion request to all 3 cra's while I was there.. so relieved. money well spent I'd say