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Valued Member
mpmss1
Posts: 31
Registered: ‎08-20-2009
0

Dispute on credit report for mortgage

[ Edited ]

Hello everyone. I have a question in regards to disputes on credit reports. I have a dispute which I initiated about five years ago. While I am starting the mortgage app process in a few months I have read several threads about open disputes and how it could affect being approved. I am confused if this is cleared up or not. On one of my reports it shows as "Subscriber reports dispute resolved - consumer disagrees" I know what it says but am confused if LO/UW will look at that as an open dispute becuase of the "consumer disagrees" part of that or is the dispute actually resolved due to the "Subscriber reports dispute resolved"? Thanks in advance for your responses.

Valued Contributor
IOBA
Posts: 2,697
Registered: ‎08-13-2009
0

Re: Dispute on credit report

[ Edited ]

This is what I was told a few days ago....

 

If the word "dispute" shows up anywhere on the credit report, you will NOT get the clear to close on a loan.   Period.

  

You can get approved (I was) but will not get FINAL approval to close.

 

In my case, the CA (who NEVER had the account) decided to report it as a paid collection after the OC was paid.  Like several yrs after the OC was paid that this thing showed up on the CR.   Initially it was unpaid, disputed -it updated to paid.   When the CA was asked to remove it, cuz of the house purchase, they updated it to say "Subscriber says customer disputes".   Ok that means that the CA put the dispute on the CR, not me.   The account says it's closed and paid.   But still, the LO said no way will the UW approve it BECAUSE -  are you ready for this?

 

Even though it's paid and closed, what if it suddenly sprang back to life and had a balance due?  Then the newly brought back to life collection would negative affect the FICO score and my DTI.   Thus, possibly making me ineligable for a mortgage after the fact.  So never mind  that it says CLOSED and it says PAID, there is a chance it could come back to life!

 

So if you really want a mortgage, remove the words "dispute" from EVERYWHERE on your credit report.

Regular Contributor
kyomagi
Posts: 169
Registered: ‎05-02-2007
0

Re: Dispute on credit report

is that why they make you pay off anything with a balance that says dispute?  I had 6 collection, 5 paid, 3 said dispute but paid and one was unpaid and said dispute.  They made me pay it.  Am i going to be ok in this case since it was paid?  BTW i paid the balance in full and showed proof.

 

 

My LO never mentioned this and this was a contition of the UW

 

 

Why in the world would they approve you knowing this but not complete the loan?  

What lender did you use? 

Valued Member
mpmss1
Posts: 31
Registered: ‎08-20-2009
0

Re: Dispute on credit report for mortgage

[ Edited ]

I also would like to add that the dispute was for a 30 day late then. With the comment "Subscriber reports dispute resolved - consumer disagrees" since this comment was placed on my report by the ccc, will I have to deal with the ccc directly or can I go through the cra to get the comment deleted if in fact it needs to come off? Also, If it matters I will be going with a USDA Guaranteed loan when the time comes. Thanks again.

Valued Contributor
IOBA
Posts: 2,697
Registered: ‎08-13-2009
0

Re: Dispute on credit report for mortgage

kyomagi - usually UW want all collections paid off (so that they don't affect your DTI and they don't put liens on the house).   They want the word dispute gone everywhere on your CR even if the account is paid.  They dont' want the debt to come back to life later and be an issue.

 

The LO usually focuses on the front end of things - your FICO score, DTI ratio, and any negatives that could affect being eligable for a loan product.   They don't go looking for the word "dispute".   

 

The UW goes over everything with a fine tooth comb and a magnifying glass.  The UW is looking for the word dispute.

 

In my case, it may not have been on the report.  My saga goes back to last year.  It's possible the CA added it after the inital report was pulled. I had asked the CA to remove the account from the CB becuase they never owned it or collected on it.  It was not theirs to report.   I just happened to notice this month.  I have not closed on the loan.  The two lenders I had talked to were local - one was a bank and was a broker.  The broker said that industry wide, in the last 12 months, absolutely nothing was getting final approval with the word dispute.   He said people were being approved...just not being funded.

 

mpmss1 - I don't have any experience with USDA.  My suggestion is to contact the CB (all 3) and ask them to remove the dispute comment and give you an updated credit report.   If they don't, ask the ccc to remove the comment.

Regular Contributor
kyomagi
Posts: 169
Registered: ‎05-02-2007
0

Re: Dispute on credit report for mortgage


IOBA wrote:

kyomagi - usually UW want all collections paid off (so that they don't affect your DTI and they don't put liens on the house).   They want the word dispute gone everywhere on your CR even if the account is paid.  They dont' want the debt to come back to life later and be an issue.

 

The LO usually focuses on the front end of things - your FICO score, DTI ratio, and any negatives that could affect being eligable for a loan product.   They don't go looking for the word "dispute".   

 

The UW goes over everything with a fine tooth comb and a magnifying glass.  The UW is looking for the word dispute.

 

In my case, it may not have been on the report.  My saga goes back to last year.  It's possible the CA added it after the inital report was pulled. I had asked the CA to remove the account from the CB becuase they never owned it or collected on it.  It was not theirs to report.   I just happened to notice this month.  I have not closed on the loan.  The two lenders I had talked to were local - one was a bank and was a broker.  The broker said that industry wide, in the last 12 months, absolutely nothing was getting final approval with the word dispute.   He said people were being approved...just not being funded.

 

mpmss1 - I don't have any experience with USDA.  My suggestion is to contact the CB (all 3) and ask them to remove the dispute comment and give you an updated credit report.   If they don't, ask the ccc to remove the comment.


I have to disagree, my LO sent the file to the UW and they said that i had to pay the one collection off.  the UW never made it a condition to remove the word "dispute" from any of my collections

 

If they spring that on me after being this far into the process, i will own a home, but no mortgage, if you get what i am saying

Valued Contributor
IOBA
Posts: 2,697
Registered: ‎08-13-2009
0

Re: Dispute on credit report for mortgage

If your lender didn't make a big deal about the word dispute, then dont' worry about it.  I shared my experiences with a local lender and a broker.   They both said "dispute = no".

 

Who is your lender?  I am sure that lots of people would like to know.

 

 

Regular Contributor
kyomagi
Posts: 169
Registered: ‎05-02-2007
0

Re: Dispute on credit report for mortgage

my large state only credit union

Frequent Contributor
payingoffdebt001
Posts: 406
Registered: ‎04-15-2011
0

Re: Dispute on credit report for mortgage

I heard "get rid of disputes" but since I'm not near looking for a mortgage yet I havent.  But I will soon and I think I'll try calling the CRA first to see if that will do it.  Then, hope they just clear up on their own.  But again, i dont know..will see what other response you get.

Member
nineironkitty
Posts: 10
Registered: ‎09-28-2012
0

Re: Dispute on credit report for mortgage

I am hearing the same thing from a mortgage broker in Florida.  I live in Colorado and am planning on relocating to Naples in 5 months.  I'm halfway through a Chapter 13 and am just now finding out exactly what creditors should be reporting on my credit bureau reports that are included in the Chapter 13.  Now I will have to dispute what they are reporting because I'm getting double dinged (some are showing charge offs even though they will get most of their money), I've been making lower car payments on my car via the Trustee and those aren't showing up and I am current on my mortgage with $1700 in the bankruptcy getting paid.  Am I better off sending letters through my BK attorney to the creditors that they have 30 days to correct the information they are reporting or we will file suit?  And why isn't there a rule for the credit bureaus that resolved disputes are removed after 90 days????  This is just nuts...only the scammers (STILL) are able to get mortgages these days!


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