Denied a mortgage because of disputes...ughhh

[wilee]

Blasted credit union! They fixed the incorrect reporting then add "Dispute resolved - consumer disagrees" or something to that effect. I didn't think it mattered till I got a response from my mortgage app telling me I couldn't get through the secondary market underwriting do to too many disputed accounts. Anyone have any luck getting those notations removed? My credit scores are between 710 & 740, DTI is good, and my BK7 was 5 years ago so everything is a go except these miserable credit union accounts.

[musikklvr]

Same thing with me. First thing I have to do is get my disputes off. I had to call all 3 agencies and tell them to remove the disputes lines from my credit report. It will take about 30-45 days for them to get it off.

Can't get a mortgage with disputes on your credit. Sux I know.

[wilee]

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@musikklvr wrote:

Same thing with me. First thing I have to do is get my disputes off. I had to call all 3 agencies and tell them to remove the disputes lines from my credit report. It will take about 30-45 days for them to get it off.

Can't get a mortgage with disputes on your credit. Sux I know.

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Well, that's not quite true. I was denied a secondary market mortgage; I could've gotten a "portfolio" mortgage that the bank held, but the 30yr FRM rate was 7%. 

My credit is fine, I just can't get through automated underwriting for my local bank to resell the note until the dispute notations are removed.

[wilee]

Update:

Experian has removed the dispute statement from all my CU accounts. They verified first, then I called back and told the rep I was NOT disputing the account and didn't understand how they could say I was. The rep said she would remove them...and she did.

Equifax says they verified the info and updated the payment history. I wonder how they can verify that I'm disputing an item without asking me. Idiots! I called and told the rep they couldn't have verified if the "consumer disputes" statement was accurate because no one asked me, the consumer that supposedly disputes...I got another investigation confirmation number. 

Haven't heard back from TU yet but it appears they are also did the same thing as Equifax and confirmed I'm disputing the account. They also changed on of my IIB account to "Paid after Collection or Chargeoff". This seems to be the trend with the CRA's and this credit union; fix one error and create AT LEAST one different error. I'm beginning to thinks it is deliberate.

This is really frustrating. I finally got all the account status' and dates reporting correctly and now the little dispute statement is still holding me back.

</rant>

Message Edited by wilee on 04-01-2009 11:41 PM

[medicgrrl]

Are they allowing any disputes on the credit report?  I think this is BS.  I did dispute my GMAC because they had incorrect information.  I think one bureau fixed it and another has that "account verified-consumer disagrees" statement or whatever it is they put on there.  Are you being denied for a conventional loan?  Anyone know if this causes issues with USDA?

[wilee]

I wasn't flat out denied. I was counter-offered a "portfolio" loan which i declined because the rate was too high. This was for conventional financing that was intended to be sold to Freddie. My loan officer did say 1 or 2 accounts may have been okay. The problem is, I had 5 accounts with this credit union over the years and they have marked all 5 with the consumer disputes message.

The original dispute was for the 2 accounts that were included in bankruptcy. The credit union continued to report a balance and late payments for about 2 years after the BK discharge and I disputed those 2 accounts because they should've stopped reporting lates when the accounts were discharged. The credit union responded by changing all 5 accounts to included in bankruptcy. Two years of hassle later, all the accounts were reporting with the correct status and closed dates, but they had the "consumer disputes" message. Worried I would end up with more errors if I tried to get the dispute note corrected I just let it be. Then came the mortgage rejection because of too many disputed accounts.

[Marylen]

Oh my god.  I just posted pretty much the same question.  I don't know what else to do.  I searched this board all day yesterday and never saw your post until after I posted mine.  Experian is like a dream but I don't know what to do about the other two either.

[wilee]

I give up. The credit union says the dispute statement is correct because I disputed the accounts with the CRA's and I need to have the CRA's remove them if I want them removed. The CRA's say the dispute statement is being reported by the credit union.

I have done all I can without taking legal action and I'm not willing to invest the time and money to go to court. All the problem accounts are over 5 years old so I guess I've got 2-5 years left of inaccurate disputes showing. The 2 IIB accounts will be gone in Feb 2011 and the last of the 3 "paid as agreed" accountst will drop off in August of 2013.

I will either refinance with a local bank and have a portfolio loan or keep my current ARM.

Maybe the credit union will spontaneously combust.

Message Edited by wilee on 04-03-2009 03:13 AM

Message Edited by wilee on 04-03-2009 03:14 AM

[medicgrrl]

Email the president of the CU...can't hurt to try