Collection popped up 2 days after Mortgage app!!! What are my chances???

[ripper998]

SInce they are so low, it shouldnt be a problem, plus they are from 4 year ago.  When me and my wife start our app, I had a couple of collections from 3 years ago and I got them removed in the middle of apping on my own just because I wanted them gone.  The LO told me I didnt have to because they were below a certain amount.  He never reran my credit and I wrote a LOE and that was that.  We got our Clear to close this past friday.  It all depends if the broker follows FHA rules or has a higher bar you have to meet. 

[KitriPrincess]

www.optoutprescreen.com

[m29]

So just a small update: Talked with LO today to set up a time to meet for all the verification stuff so he can submit the file to the bank.

 I explained to him what happened with the collection thing and told him it dropped my score 18 points. First off he thought I was crazy that it dropped that much from a med collection (okay whatever, well it obviously did). I told him I was worried because I thought there was a good probability that the bank would do another credit check before closing! He told me as long as the time frame (I think it's 90 days) hasn't expired before closing then the bank will NOT pull another report!!!

I have had so much contradictory information, I just don't know what to think!!!

[getahead]

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@IOBA wrote:

Ugh.

1.  OPT OUT of your credit reports immediately!!

2.  Are you in a community property state?   

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How does OPT OUT benefit you from CA reporting? I'm planning on buying a home in the summer & cleared all my baddies of my report.  BUT noticed CA agencies are mailing me REALLY OLD collections that happened over 7yrs ago.  Can they still report this on your CR?

[MarineVietVet]

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@getahead wrote:

 

How does OPT OUT benefit you from CA reporting? I'm planning on buying a home in the summer & cleared all my baddies of my report.  BUT noticed CA agencies are mailing me REALLY OLD collections that happened over 7yrs ago.  Can they still report this on your CR?

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Opting out inhibits baddies like CAs from sniffing around your reports. The CRAs sell your info and if so subscribed, the CA will get alerted if an inquiry appears from a mortgage lender or the like. In turn, the CA might opt to report knowing that most lenders will require you to take care of that debt first. Opting out prevents the CA from receiving that info.

At least in theory that's how it's supposed to work but I wonder with all the ways of gathering information these days if there is any reliable method of hiding our data.

As far as old collections are concerned the CRTP (Credit Reporting Time Period) for collections is up to 7.5 years from the DoFD but they can attempt to collect forever because the debt never really goes away even after it can't be reported.

[rckstrscott]

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@MarineVietVet wrote:

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@getahead wrote:

 

How does OPT OUT benefit you from CA reporting? I'm planning on buying a home in the summer & cleared all my baddies of my report.  BUT noticed CA agencies are mailing me REALLY OLD collections that happened over 7yrs ago.  Can they still report this on your CR?

---

Opting out inhibits baddies like CAs from sniffing around your reports. The CRAs sell your info and if so subscribed, the CA will get alerted if an inquiry appears from a mortgage lender or the like. In turn, the CA might opt to report knowing that most lenders will require you to take care of that debt first. Opting out prevents the CA from receiving that info.

At least in theory that's how it's supposed to work but I wonder with all the ways of gathering information these days if there is any reliable method of hiding our data.

As far as old collections are concerned the CRTP (Credit Reporting Time Period) for collections is up to 7.5 years from the DoFD but they can attempt to collect forever because the debt never really goes away even after it can't be reported.

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Opting Out does not stop anyone with permissable purpose, and it most definitely does not stop those who have permissable purpose from having alerts on your credit file... so if a collection company already has an account on you; opting out will do nothing for you.. it should stop JDB's who just happen to have your name on file, and are digging around various resources to find junk debt, but if the debt is already established and permissable purpose in place, it will not stop that..

Many collection companies w/ permissable purpose will hold accounts, and not report, on the hope you are applying for lending in the near future.. just because it isn't reporting didn't mean they didn't have the account prior to opt out, and therefor, can still hit you with INQs and alerts..

Opting out does have its purpose, stopping applications, junk mail, and even JDB's from placing BS accounts, but from what I have experience and read, will not stop a collection company from finding out if you are apping, if they already had the permissable purpose in place..

This just happened to me with LVNV, they already had an account, so when I applied for the mortgage, they INQed me the very same day as my mortgage app and slapped a collection account on my file.. I had opted out weeks prior.. good thing they cave in with BBB complaints..

-scott

[MarineVietVet]

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rckstrscott wrote:

Opting Out does not stop anyone with permissable purpose, and it most definitely does not stop those who have permissable purpose from having alerts on your credit file... so if a collection company already has an account on you; opting out will do nothing for you.. it should stop JDB's who just happen to have your name on file, and are digging around various resources to find junk debt, but if the debt is already established and permissable purpose in place, it will not stop that..

Many collection companies w/ permissable purpose will hold accounts, and not report, on the hope you are applying for lending in the near future.. just because it isn't reporting didn't mean they didn't have the account prior to opt out, and therefor, can still hit you with INQs and alerts..

Opting out does have its purpose, stopping applications, junk mail, and even JDB's from placing BS accounts, but from what I have experience and read, will not stop a collection company from finding out if you are apping, if they already had the permissable purpose in place..

This just happened to me with LVNV, they already had an account, so when I applied for the mortgage, they INQed me the very same day as my mortgage app and slapped a collection account on my file.. I had opted out weeks prior.. good thing they cave in with BBB complaints..

-scott

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IMO at least the opt out tactic has pretty much become a paper tiger except for stopping unwanted mailings of CC invitations and such.

But it certainly can't hurt going ahead and doing it.

[m29]

Hi all, I just wanted to update this thread! 

First off There were 3 more softpulls of my CR for the mortgage process!

I emailed GW letters to the CA and as of yesterday both the collections were removed from all CR!!

[IOBA]

rckstrscott - it may be that the opting out didn't make it through the system.   I had opted out and received the confirmation notice.  I noticed, a few months later, that my CR didn't have the notation about opting out.  I had to do it a second time.  Received the same confirmation.   Checked my CR - all three have a notation on them that I had "opted out".

Maybe it was luck that LVNV had pulled your report the same day that you app'd for a mortgage.   Glad it worked out for you.   

Have you seen the notation at the bottom of your reports showing you opted out?  It will be on the annual reports you get, not the tripulls.