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Member
foggyjack
Posts: 26
Registered: ‎08-28-2012
0

Conditional Approval Condition: 'Account Information Disputed By Consumer' Help!

Hello!

 

We received our 'conditional approval letter' yesterday evening on a new construction home we are purchasing in PA for $605k...we are putting down 20%, have credit scores in mid to upper 700's range..Actually higher today as we submitted mortgage application on 1/16 & we had just paid down high CC utilization on 1/4/13, which wasn't yet reflected on credit reports & mortgage broker said our scores were where they needed to be for the best rate on a jumbo loan [home prices high in Philly & even with a 20% deposit, we have to finance $484k as convention limit is $417].

 

We moved to PA from NV and had lived in NV for the last 2 1/2 years...we rented in NV as we still owned our home in IL when relocated to NV...it took 16-months to sell & finally sold June 2011.  We accelerated that mortgage and never paid it late even though we had to maintain two (2) households for those 16-months...VERY proud & blessed we were able to do that and didn't have to walk away.  Additionally, we've never paid anything late, so we are fortunate too to have stellar credit.

 

Here is my situation and why I'm coming to the forum for help.  I can't believe how different the mortgage process is now and even though I expected our 'conditional approval' to come back with conditions, I was surprised to see the following condition and I'm not sure how to handle it nor how long it will take to satisfy.

 

Disputed trade line has been identified; Borrower to provide satisfactory letter of explanation for the act being disputed.

 

At first I had no idea what this was as neither my husband nor I remembered ever disputing anything.  We looked at our Tri-Merge Credit Report our mortgage broker gave us and I saw it was for a Visa account that I've had for about 15-years and haven't used since 2006 [but never closed because I know this isn't advised].

 

I called the credit card company a little while ago, and the supervisor told me that I had disputed a charge to 'Netgear' in 2005 as a charge I didn't make [I sort of remember this, but still not all the details...this account was never unpaid or late, etc.].  The supervisor said that they did close that account and they reissued me a new Visa account # due to the fraud.  She told me they will remove the comment and I should call them back within 24-48 hours to make sure it was done.  BTW, this is an account in good standing, never late or in collection status or anything like that, so it wasn't ever a dispute for a charge off or a collection, which is the only information I've been able to find on MyFico forums; hence my reason for posting my situation.  Another bit of information is that the remark 'Account Information Disputed By Consumer' that is showing on the Tri-Merge Credit Report pulled by my lender, does not show on either EQ & TU that I pull from MyFico nor from my credit report pulled on the EX website.  As I stated above, my husband and I have no negative credit at all, but I'm still so worried that we wont get a 'clear to close' because of this remark on a Visa card that I disputed a fraudulent charge I didn't make in 2005! 

 

Do you think the credit card company will indeed remove the remark 'Account Information Disputed By Consumer' from my credit reports as they said they would?  If I write a letter of explanation stating everything I stated here for the 'condition' to the UW, will that satisfy condition?  If not, how will I prove to the UW that the remark was removed from my report because the remark doesn't show when I pulled all of my credit reports?  It's only showing on the lender's tri-merge pull, which I don't want to repull as we got our pre-appoval over a month ago and the UW will need to pull our credit again as house won't be completed/we won't close until March 15, 2013.

 

Any help on this matter would be so greatly appreciated.  We've given the required $25k earnest money deposit, but since the home is new construction and we added upgrades, it's in our contract that we have to provide the builder with a $40k non-refundable deposit by Monday and I'm so scared if I can't satisfy this condition, we will lose the home and the $40k non-refundable deposit.

 

Thanks so much for your help! :smileyhappy:

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Conditional Approval Condition: 'Account Information Disputed By Consumer' Help!

Yeah just write explaining what happened, im shocked they didn't make you do a rapid rescore to get it off.

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Conditional Approval Condition: 'Account Information Disputed By Consumer' Help!

I think you are over thinking the condition. The condition just states to explain in a letter the dispute you opened in 2005 for that account. Even if it is removed from your credit reports, your UW will still want the condition satisfied with a letter of explanation. So I wouldn't worry about getting it removed. The UW just wants a letter of explanation for it. When they get the letter for the condition, they will either consider it satisfied and approve your loan or come back with another condition. Usually they only ask for more info on a condition you satisfied to obtain more info that may be needed to approve your loan.

So I would just write the letter and explain why it occurred, send it off to the UW, and wait for a response. Most folks have disputed a charge on their credit card at least once. It is awkward that it shows up on your report but still I don't think it is an issue. If you get it removed, great but if not, I think you will still be approved. You can also include the fact that you are working to get it removed in your letter of explanation but also explain the likelihood of it being removed so the lender doesn't expect a change to your credit report. Do not worry. :-)
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Member
foggyjack
Posts: 26
Registered: ‎08-28-2012
0

Re: Conditional Approval Condition: 'Account Information Disputed By Consumer' Help!

OMG!  Thank y'all so much for your quick responses, Tooleman and Moving Forward_2012! 

 

I've been so worried...I can't believe how stressful the mortgage process is now!  I realized it when our mortgage broker gave us the 'additional documentation checklist' when we filled out our application a couple of weeks ago, so I've been on pins & needles since.  I'm a definite worrier, which doesn't help at all.  That's when I started stalking this board, so I'm very familiar with both your situations and I'm definitely cheering you both on!  Yay! :smileyhappy:

 

I'm going to do as y'all said and write the LOE for the UW explaining situation and hope the cc company actually removes it if she needs more to satisfy.  Tooleman, I'm not sure why my mortgage broker didn't think the remark would cause a condition?  I talked to him about it this morning and he didn't seem near as worried as I...he said to just call the cc company to have it removed because it was for an account in good standing and wasn't a collection or charge off.  But, after I hung up from the cc company, I goggled 'account information disputed by consumer' and everything I read said I'd never get a 'clear to close' with that on my credit reports. 

 

Thanks again for your quick responses!  I will continue to follow both your journeys!  I'll also update if I ever close! :smileyhappy:

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Conditional Approval Condition: 'Account Information Disputed By Consumer' Help!

Yeah I dont you can get the clear to close with it on there. which is why im shocked.

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Conditional Approval Condition: 'Account Information Disputed By Consumer' Help!

I think what you googled were probably disputes for a collection or charge off. Not for disputing a charge on your credit card that you believed to be fraudulent. And I think the UW just wants that stated in a letter so they know it was not for a collection or charge off...because like you said, that would be very bad and require removal for approval. So I truly believe this is a nonissue that will be satisfied quickly with your letter.

Our tentative closing date is Jan 30th and I was up all night last night writing LOEs and signing the final documents for clear to close. I had 13 conditions to satisfy so if I get through this, you definitely will. Don't stress...relax and breathe. Everything is going to turn out just fine. I struggle with not worrying myself, so you are not alone. :-)
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Member
foggyjack
Posts: 26
Registered: ‎08-28-2012
0

Re: Conditional Approval Condition: 'Account Information Disputed By Consumer' Help!

Hahaha!  You're so cute...Moving Forward_2012!  I love reading your posts...you have so much passion, which is something you can't teach someone...they have to have it naturally! :smileyhappy:  I hope you're correct!  I just looked at how UW stated condition and it does say give an explanation for the act being disputed.  I guess because she can see that the account is in good standing and has never been late/gone to collection/charged off.  I'll write the LOE and also hope the cc company does remove the dispute comment as they said they would...they should because it's over 7-years old.  

 

Tooleman, from what I've read that is definitely what I thought too, but, I could only find information pertaining to a late/collection and/or charge off account being disputed.  I just wish I'd have known it was even there so I could have taken care of it already!  I'm not sure why it only showed on the lender's tri-merge report? 

 

I'm going to try not to worry and just get it fixed.  I'll update y'all on what happens.  Thanks so much to all of you! :smileyhappy:

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Conditional Approval Condition: 'Account Information Disputed By Consumer' Help!

I need to double check conventional guidelines, but I remember reading you can't have any at all.

 

FHA will let you slide though.

 

Its just one of those silly things that has to get done.

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Conditional Approval Condition: 'Account Information Disputed By Consumer' Help!

Well how about that. In the new guidelines they no longer need to have them removed. But the monthly payment must be included in the DTI.

Member
foggyjack
Posts: 26
Registered: ‎08-28-2012
0

Re: Conditional Approval Condition: 'Account Information Disputed By Consumer' Help!

WOW...Tooleman, thank you so much for taking the time to look that up!  You guys are great! :smileyhappy: 

 

Like I stated earlier, I've been stalking this forum over the last 10+ days and I've learned so much!  It's very humbling to see how much time you take to help others!  I was so worried the other day when I read your thread about the dreaded phone call and was so relieved to read the outcome. 

 

As many of us know from previous home ownership, this process has certainly changed.  After reading so many stories, it seems like nothing is really consistent, which makes this forum so unique.  It doesn't matter what your personal circumstances are, the path can still be quite bumpy to hearing those 3 words 'clear to close'! :smileyhappy:


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