09-07-2012 11:11 AM
My husband and I are under contract and supposed to close at the end of the month. We have one condition that must be met. We need to pay off/close a collections account from like 5 years ago. The account was showing up as disputed and that is why the underwriter wants it taken care of first. The collections agency on the credit report is CAC Financial Corp. My husband called them to settle the account and they told him they don't have the account anymore and it was transferred. We are going to settle the account with the new CA however in order to fulfill our condition we have to prove that the CAC account is closed and no longer disputed. We have asked them for documentation of this and they will not provide it and keep saying that we have to speak with the new CA (apparently they are affiliated). Does anyone know of anything we can do or say to make them give us the documentation we need? We have explained that we know we have to pay the new CA, not them, but I am not going to pay the new CA a dime until I get the documents I need from CAC. The account is only 6 months away from being past the SOL, so if they are going to keep me from buying my house they are not going to be getting that money....I am so frustrated!!
09-07-2012 12:35 PM - edited 09-07-2012 12:36 PM
You need to have the "in dispute" removed from your credit file, the ca does'nt need to do anything. Search for removing dispute comments-there are tons of threads on this.
Just a heads up but when an account is listed as "in dispute" it's not figured into your credit score so it could very possibly drop your score when the comments re removed.
Also if it still shows a balance just get the ca to type up somthing saying they no longer own it and you should be good.
09-07-2012 12:39 PM
How frustrating!!!!! I would be scared to even contact a new agency fearful they might report it to the CBR and try to tank my score... Are they still reporting it as a balance owed??? I'm not sure what the quick fix would be for this considering you have don't have much time to do it...
09-11-2012 07:07 AM
Thank you for the advice. Our options were to pay in full now and then show documentation that it was paid (which would mean getting letters for the original CA and the new CA) and then show documentation showing where we got the money to pay the CA...or we could just pay it through closing. My original thought was to get it out of the way, but with all of the trouble we were having we have decided to pay through closing instead so that we can just hand the money over to the bank and let them take care of it.
Luckily we don't have to worry about the dispute hurting our scores since our lender has told us that they only pull credit once, unless the loan takes more than 90 days to close. We got our original credit pull on 7/31, we are scheduled to close at the end of the month, so they shouldn't need to repull....unless he is misleading us. I pray that he is telling the truth because my husbands middle score is only three points above what he needed to qualify so we don't have much wiggle room.
09-11-2012 11:10 AM
I don't know if it would be deleted, or just show up as a new account with the other agency. Even if it could just be deleted, because it is almost 6 years old it would likely not change his score for the better much, if at all. Because his score is soooo close to the edge of not qualifiying (only 3 points!!) we don't want to do any rescoring in case his score has dropped even a little, which it very well might have just from doing the hard pull to apply for the mortgage. Paying through closing seems like the way to go since we have the money, and all we have to do it provide it to the bank, no chasing down documentation.