@Anonymous wrote:
Hello everyone,
I understand that one of the requirements for FHA approval is no late payments in the last two years. I have three open credit cards that I have never been late on since they were opened in 2006/2007. However, there are a few collections (LVNV, Midland, Arrow) for charged off credit cards that are reporting under the open accounts sections of my Experian and Transunion credit reports and showing late payments 90+ days.
Transunion shows the account type as open account and status as collection while Experian shows the account type as installment and status as account seriously past due ;they are reporting correctly under the collections section of my Equifax report.
If I have a 620 mid score would i be denied for FHA if these collections are showing as recent missed payments on my EX and TU reports? The accounts are passed the SOL for my state and are scheduled to fall off my report between 2010 and 2011. I would pay them but I hear these agencies are hard to deal with and dont do pay for delete.
I was also in the rebuilding credit forum and someone with a similar issue had it corrected but lost around 30 points when the account was moved to the collection area so im really scared to dispute with the CRA
Has anyone been in this situation and have any advice?
Don't worry about them unless your loan officer tells you too (and get a second opinion from another loan officer if the first one does tell you that).
This is a ploy some of the more underhanded collections agencies have been employing recently. While the way they report it does look like a recent late on the MyFICO reports, the fact that it is a collection is reflected on the credit report the lenders pull, and they can factor them out.
I have similar issues with two old collections also about to drop off, both consistently reporting me as 90 day lates every month. It did not prevent me from getting my FHA loan fully approved (cleared to close).
