Mortgage question with Collection action on Credit Report

[vollybal]

Hello all, Have read a lot on these boards but first time poster.

Here is my situation:

Wife and I are hopefully looking to get our first home at the end of the year. It is new construction. I really need to get our scores up to get a good interest rate, but will be ok after we pay off debt and one of our cars. My dilemma is that there is a collection account in the accounts with a balance of around $4500 is listed under Palisades under credit accounts. The date of last activity was Nov. 2003 and it is the only thing that shows as past due balance.It has a current status of 120+ past due. It has nothing listed for the seven year payment history and for most of all the other fields like date opened, date closed,account number, loan type, and worst deliq. are listed as "Not Reported".

Here is what I am wondering.

-- Will this entry on my report have repercussions on us trying to get a mortgage? If so how badly as we want to go the route of fha.   

-- If I try and dispute and/or validate the debt on the credit report will Palisades see that and update the dates to keep it on my report longer and make it look like a recent past due?

I really appreciate any feedback you guys and gals have for me.

Thanxs!!

Michael

[DallasLoanGuy]

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vollybal wrote:

Hello all, Have read a lot on these boards but first time poster.

Here is my situation:

Wife and I are hopefully looking to get our first home at the end of the year. It is new construction. I really need to get our scores up to get a good interest rate, but will be ok after we pay off debt and one of our cars. My dilemma is that there is a collection account in the accounts with a balance of around $4500 is listed under Palisades under credit accounts. The date of last activity was Nov. 2003 and it is the only thing that shows as past due balance.It has a current status of 120+ past due. It has nothing listed for the seven year payment history and for most of all the other fields like date opened, date closed,account number, loan type, and worst deliq. are listed as "Not Reported".

Here is what I am wondering.

-- Will this entry on my report have repercussions on us trying to get a mortgage? If so how badly as we want to go the route of fha.   In my professional opinion, little or no impact i you have a bunch of other good account.

-- If I try and dispute and/or validate the debt on the credit report will Palisades see that and update the dates to keep it on my report longer and make it look like a recent past due? I see this happen a lot. people start disputing stuff and it gets updated to more recent(bad for you). I recommend that you let that sleeping dog lie for now and apply. You need to 'opt-out' from the credit bureaus too. It seems to help in keeping the junk debt buyers from getting alerts to your mortgage inquiries and stepping up collection procedures.

I really appreciate any feedback you guys and gals have for me.

Thanxs!!

Michael

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[vollybal]

Thanxs Dallas for the info I will go that route as it does sounds very good and sound...Ok here is a stupid question I guess, but what is opting out of the credit bureus?? And How would I go about doing that??

Thanxs Again!!!

[DallasLoanGuy]

do a search in the mortgage orum.

here is the short answer(as i understand the issue)

some collection agencies 'subscribe' to your credit report.... and if you apply for a mortgage, they get an alert. they step up collection activities to try and scare you into paying them because you really want a house.

maybe someone else here can answer this better.... as i am not the expert.

start a new thread with this question.... titled: "opt out - why should I?"

maybe we can get a mod to create a sticky post as this is something i will reference often.

[vollybal]

Hey Dallas,

I have another question for you that has to do with this situation. Well it looks like Mann Bracken LLc has bought this debt or something like that. Nothing has posted to my CR or updated it but I did receive a nice little letter explaining that they are representing Palisades on the debt from 2003. Now here is what I was wondering in regards to the FHA type of mortage. I looked at the account on my CR from Palisades and DOLA is Nov. 2003 I believe the SOL on autos for NC is 5 years. If that is so Do they have until nov. 30th 2008 to file and if not they are over the SOL and cannot file??

Any other advice on how to handle that as around that timeframe is when we are looking to get into our first home.

Thanxs