New collection after pre-approval

[NYKnicks65]

Hello forum, quick question for you please. I was pre-approved back in May 2016 with the condition of "Workable Credit". New build and home is almost complete. Tenative closing was set for November 15th. Was referred to the credit repair company and they have done a tremendous job of getting items updated and removed from my report. Paid down credit cards and my score has increase significantly. I had a chapter 7 back in 07/2014  which has been discharged this year, but I had a recent collection after my pre-approval was issued. I contacted the collection agency(AFNI) and they will not pay to delete. They will only take a payment and update the account to show as paid in full. I understand this could drop my score because it updates the collection as current. Now, my question is: the mortgage company has pushed back the closing until December in order for the credit repair company to dispute the collection account. Is this normal and what should I expect if they cannot get the collection removed? Can I be denied due to this open collection? I thought with a FHA loan, you could have a collection if they did not exceed 2000? Thanks!!

[StartingOver10]

Have a very serious talk with your LO.

Having a collection after a Bk is very, very serious and extremely difficult to overcome. This is especially true since you have been in a Ch 7 that was just discharged this year and one of the requirements is no lates for 12 months (from what I have seen).  

You can't have disputes on your credit file and get a mortgage. All the disputes have to be removed to actually get approved. 

Contact your lender immediately

[Anonymous]

I am going FHA and had a collection pop up that was previously removed. They wouldn't pay for delete but my lender just required I simply pay it. It was only $150-ish if that helps. 

[StartingOver10]

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@Anonymous wrote:

I am going FHA and had a collection pop up that was previously removed. They wouldn't pay for delete but my lender just required I simply pay it. It was only $150-ish if that helps. 

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It's not that it is a collection.  It is because the OP just had a discharge from Bk and now has a collection incurred after her Bk.  That is the issue

[pizza1]

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@StartingOver10 wrote:

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@Anonymous wrote:

I am going FHA and had a collection pop up that was previously removed. They wouldn't pay for delete but my lender just required I simply pay it. It was only $150-ish if that helps. 

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It's not that it is a collection.  It is because the OP just had a discharge from Bk and now has a collection incurred after her Bk.  That is the issue

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agree Starting over....

Any lates, anything negative at all AFTER a DC BK, is BAD, BAD, BAD!!   Thats why its stressed SO much adter a BK to manage your finances/ new credit accts/loans etc....like an obsessive watch dog!  you dont want negs after a DC BK.....period... at all! 

[NYKnicks65]

So what you are saying is that I'm SOL when it comes to getting this final approval? I have paid everything on time and worked so hard to get this far.. This would be so disheartening if I were to get denied.. what about a LOE? The sad thing about this situation is that the account does not even belong to me.. it was opened fraudulently but because all my information matches the new account ATT will not deem the account as fraudulent

[StartingOver10]

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@NYKnicks65 wrote:
So what you are saying is that I'm SOL when it comes to getting this final approval? I have paid everything on time and worked so hard to get this far.. This would be so disheartening if I were to get denied.. what about a LOE? The sad thing about this situation is that the account does not even belong to me.. it was opened fraudulently but because all my information matches the new account ATT will not deem the account as fraudulent

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That is a different situation then - if it isn't your account.  Like I said, contact the LO.  Did you file a police report for ID theft? 

[NYKnicks65]

I have spoken to my loan officer.. They told not to worry but after reading other stories you cannot help but to worry.. I have not but I can

[NYKnicks65]

Hello forum, I'm back.. so I checked my mail today and I had a collection notice from ERC for the same ATT account that AFNI placed on my credit report.. I paid the settlement amount for ERC.. This account has now been settled. What can I do now to get AFNI to remove the collection from my credit report? Thanks!!