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Incorrect Account Type Holding up FHA Approval

New Visitor

Incorrect Account Type Holding up FHA Approval

My Experian report is the only one of the 3 accurately reporting an installment loan obtained to make home repairs on my previous residence. Equifax & TransUnion have the account type listed as 'Mortgage'. This is holding up my FHA approval in underwriting as they are requesting a settlement statement indicating the $28k has been satisfied.

 

When I contact the lender they assure me they have the account listed as 'Installment'. When I log in to make my monthly payment it reads "Installment".

 

Why would one reporting agency have it right & the other two be wrong?

 

I just ran my free reports from all three this morning & am supposed to be closing on my house on 3/25/11.

 

HELP!

2 REPLIES
Senior Contributor

Re: Incorrect Account Type Holding up FHA Approval

Was it an unsecured signature loan?  Or was it some sort of equity loan. 

New Visitor

Re: Incorrect Account Type Holding up FHA Approval

When my boyfriend & I financed the loan initially it was a 2nd mortgage. I quit claimed off the home's title & he reaffirmed the mortgage to have my name removed. The 1st mortgage removed me but it appears the 2nd never did. The house sold short 8 months later & the residual balance of the 2nd mortgage was converted to an unsecured installment loan apparently in both names however only he signed the settlement agreement. When he logs in to pay the bill now it says installment loan but the credit report still showed mortgage as of 3/1/11 for us both. The 2nd bank updated the loan type somewhere in their system yesterday when I called on it. I pulled my 3 free reports after posting here earlier today & only Experian is correctly reporting. His is the same-only Experian is correct. I'd think his could be updated accurately while I should fight to have it removed completely. Thoughts on this mess?