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ricky8800
Posts: 2
Registered: ‎07-22-2012
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Mortgage Approval - Consumer Disputes This Information - Impact on FICO???

Hello everyone and anyone:smileyhappy:

 

My wife and I have recently started the process of getting a second mortgage due to our growing family. We've applied with Pulte Mortgage and the Loan Consultant has mentioned that I may need to remove the "CONSUMER DISPUTES THIS INFORMATION" notation from the credit report. I asked if I should start that now to be proactive and avoid any delays but he states it may not be necessary. From all the research I've been conducting, it appears it is definitely going to be a pre-requisite in obtaining this mortgage. My question is, with my current scores, what would be the FICO score impact be if the "CONSUMER DISPUTES..." note is removed, allowing for the FICO algorithm to calculate this in my score. I believe the mortgage companies require a score of 620 and I'm not sure what to expect if I proactively attempt to remove the notations by mail/email communication to the CBs. My ultimate goal is to avoid giving the mortgage company any earnest money if the likelihood of being approved is slim. Thank you everyone, your response(s) and guidance could save me thousands of dollars and/or months of headaches.

 

Background: There are two accounts held by AAC that were purchased from CHASE about 6 years ago for accounts they my father fraudulently opened using my social security number. While I always thought the mix up was due to a merger between Chase and Washington Mutual, it turns out my father intentially opened this checking account with a"overdraft" linked credit account, both under SSN online. I've disputed this account for years with every repy stating that I am the owner of this account, and now that a branch manager has shed some light on the situation by printing me out a copy of the agreement my father completed and signed using my SSN, I'm stuck between a rock anda hard place. So in regards this situation, I've decided to leave it on my report to avoid confrontation and any legal action against my father. Since then Chase has sold those accounts to AAC as charge-offs. BTW we share the same name so it was very easy for this to occur.

 

Info:

TU FICO: 690

EQ FICO: 671

EX FICO: 629 ( I believe this CB is factoring in the Charge Offs from AAC)

 

AAC Bal 1: $6209 Expected Credit Report Fall Off: 08/2013

AAC Bal 2: $6325 Expected Credit Report Fall Off: 08/2013

Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: Mortgage Approval - Consumer Disputes This Information - Impact on FICO???

All CA and public record accounts are fully scored during a dispute. So, AAC, being a CA, is hurting your FICO with or without the comment. Only OC accounts are impacted during a dispute, and it only impacts certain aspects of an OC account. The balance, CL, and payment history are ignored. All of this applies to FICO scores. There are some non-FICO scores out there (we call them FAKOs) that ignore accounts fully in a dispute.

 

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
0

Re: Mortgage Approval - Consumer Disputes This Information - Impact on FICO???


ricky8800 wrote:

Hello everyone and anyone:smileyhappy:

 

My wife and I have recently started the process of getting a second mortgage due to our growing family. We've applied with Pulte Mortgage and the Loan Consultant has mentioned that I may need to remove the "CONSUMER DISPUTES THIS INFORMATION" notation from the credit report. I asked if I should start that now to be proactive and avoid any delays but he states it may not be necessary. From all the research I've been conducting, it appears it is definitely going to be a pre-requisite in obtaining this mortgage. My question is, with my current scores, what would be the FICO score impact be if the "CONSUMER DISPUTES..." note is removed, allowing for the FICO algorithm to calculate this in my score. I believe the mortgage companies require a score of 620 and I'm not sure what to expect if I proactively attempt to remove the notations by mail/email communication to the CBs. My ultimate goal is to avoid giving the mortgage company any earnest money if the likelihood of being approved is slim. Thank you everyone, your response(s) and guidance could save me thousands of dollars and/or months of headaches.

 

Background: There are two accounts held by AAC that were purchased from CHASE about 6 years ago for accounts they my father fraudulently opened using my social security number. While I always thought the mix up was due to a merger between Chase and Washington Mutual, it turns out my father intentially opened this checking account with a"overdraft" linked credit account, both under SSN online. I've disputed this account for years with every repy stating that I am the owner of this account, and now that a branch manager has shed some light on the situation by printing me out a copy of the agreement my father completed and signed using my SSN, I'm stuck between a rock anda hard place. So in regards this situation, I've decided to leave it on my report to avoid confrontation and any legal action against my father. Since then Chase has sold those accounts to AAC as charge-offs. BTW we share the same name so it was very easy for this to occur.

 

Info:

TU FICO: 690

EQ FICO: 671

EX FICO: 629 ( I believe this CB is factoring in the Charge Offs from AAC)

 

AAC Bal 1: $6209 Expected Credit Report Fall Off: 08/2013

AAC Bal 2: $6325 Expected Credit Report Fall Off: 08/2013


I agree that most if not all will require you to have the disputes removed. As far as how much of an impact it will have is hard to say. To many factors are included when pertains to your credit score.

 

Another thing to consider is the amount owed. Depending on lenders they may actually require you to pay the debt for a condition of approval. 

 

Are you using Pulte Mortgage because of its affiliation with the home being bought? 

Good Luck
May all your dreams and wishes become a reality!
New Member
ricky8800
Posts: 2
Registered: ‎07-22-2012
0

Re: Mortgage Approval - Consumer Disputes This Information - Impact on FICO???

Thanks for your responses.

 

You are correct JM-AM! Centex stated that I would need to at least attempt to utilize their affiliated company to receive the $9K incentive. In the event I was declined by Pulte Mortgage, they would try to gain approval through several other lenders and still receive the incentive. So, if I go directly with a lender of my choice I lose out on about $3K in incentives.

 

I'm really hoping that I can be approved the initial time around to avoid any headaches. I'm crossing my fingers that my FICO isn't affected to the point where it drives my FICO below the minimum 620, if that's the minimum for a conventional. If the minimum credit score is higher then I might be in trouble. I hope for my sake that llecs is on point when he/she states my scores are already affected regardless of the "CONSUMER DISPUTES" verbiage.

 

If all else fails, my wife and I will have to play the waiting game until the accounts fall off my report. I wonder if I can lock in my rate for next September now on a new construction...hey, I can dream!:manlol:

 

 

 


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