Not a Happy Camper with USDA Home Loan people........

[pat2franklin]

Ok here is the story, I looked into the USDA home loan, I read up on it, read some threads on here and talked to the USDA people themselves, got the application in order and all the documents (had to call my employer a couple times to get their butts in gear to send my employment verification, but finally they sent it in) they did a pre application credit check and what not to see if I was eligible, they said I looked all right.........well today the lady calls me and says I was not eligible for the Direct Loan as I was 3000 dollars over the cut-off, (boooo), and they were denying me for the guarenteed program because of a collection account (I'll explain in a few) and two lates in November and December of last year on a student loan.  Now, the collection account is an old medical that I do not remember its from 2004, before I applied for the USDA Loan I disputed the account with the three credit bureaus as not mine, well it dropped off all three, so I thought I was good, it dropped off Equifax on July 1, I applied July 10, the lady called me last nite and the collection is back on there, I tried to explain to the USDA lady I had documentation that it dropped off Equifax, she didn't want to even listen to what I had to say, which really ticked me off, I had thought that you had a chance to explain things to these people and write letters explaining why you were late (having to do with the student loan) and basically help you out she didn't care, she said with your credit score at 608 (I understand you have to be 650 to get no questions asked with your credit at all but I thought they worked with you if it was under) she just said  take care of the things and come back in November we will send you the rejection letter and basically hung up.  Well I was fired up at this point and called Equifax and of course I could hardly understand the operator (did they move all call centers overseas????) well I finally got through to him what I was talking about that I had disputed the Medical Collection and I had the dispute results printed out in front of me stating that the collection had been deleted, what was going on??? Well he told me that it was a different collection company listing it this time (was really not impressed at this point) Now as far as I can figure out the old collection that I disputed and they could not prove it was mine sold it to another collection company!!! (wow)  Now comes some questions if anyone could please help me out (feel free to give me advice on anything I'm rambling on about)

1. How can one collection company sell something that they can't prove is mine to another company?

2. I thought there was some kind of notification process a collection company had to do before they could list a new account?

3. What can I do?

4. There is got to be something wrong or illegal with the way it went down, right??

Now with the lates I'm going to try a goodwill letter and see if I can get those removed.

Any advice would be greatly appreciated, Thank you Everyone

[Anonymous]

Okay, first off, welcome to the forums and secondly, take a breath. That was alot at 6:30am for me to read, but I got through it!!! Anywhooo, to answer your questions----- 1. It happens believe it or not. 2. It is, you're supposed to receive a letter allowing you to respond within 30 days addressing the account. If they didn't do that, you can use that as leverage in disputing. 3. It'll take time, but DV the new collection agency that is reporting it. 4. I'm not sure about the legality of it, but I'm sure you'll get other responses. Nonetheless, GOOD LUCK!!

[rockymtngrl]

You'll probably get more specific help with your collections questions in the general credit or repairing credit forums of this board. As far as USDA thier score requirement is 620, especially if you have any baddies. They have just raised that requirement in the past few months. I was told flat out when I asked about it if my score was below 620 I would'nt be approved. I think your issue is more with the collection agency than USDA.

[pat2franklin]

lol, sorry I know its early, I work third shift though so I had some time on my hands at work, well I will post a message on the credit repair board about the collection account, I'll leave this one going to see if I can get anymore insight, but thanks for all your help so far

[WannaHouse]

---

@pat2franklin wrote:

Ok here is the story, I looked into the USDA home loan, I read up on it, read some threads on here and talked to the USDA people themselves, got the application in order and all the documents (had to call my employer a couple times to get their butts in gear to send my employment verification, but finally they sent it in) they did a pre application credit check and what not to see if I was eligible, they said I looked all right.........well today the lady calls me and says I was not eligible for the Direct Loan as I was 3000 dollars over the cut-off, (boooo), and they were denying me for the guarenteed program because of a collection account (I'll explain in a few) and two lates in November and December of last year on a student loan.  Now, the collection account is an old medical that I do not remember its from 2004, before I applied for the USDA Loan I disputed the account with the three credit bureaus as not mine, well it dropped off all three, so I thought I was good, it dropped off Equifax on July 1, I applied July 10, the lady called me last nite and the collection is back on there, I tried to explain to the USDA lady I had documentation that it dropped off Equifax, she didn't want to even listen to what I had to say, which really ticked me off, I had thought that you had a chance to explain things to these people and write letters explaining why you were late (having to do with the student loan) and basically help you out she didn't care, she said with your credit score at 608 (I understand you have to be 650 to get no questions asked with your credit at all but I thought they worked with you if it was under) she just said  take care of the things and come back in November we will send you the rejection letter and basically hung up.  Well I was fired up at this point and called Equifax and of course I could hardly understand the operator (did they move all call centers overseas????) well I finally got through to him what I was talking about that I had disputed the Medical Collection and I had the dispute results printed out in front of me stating that the collection had been deleted, what was going on??? Well he told me that it was a different collection company listing it this time (was really not impressed at this point) Now as far as I can figure out the old collection that I disputed and they could not prove it was mine sold it to another collection company!!! (wow)  Now comes some questions if anyone could please help me out (feel free to give me advice on anything I'm rambling on about)

1. How can one collection company sell something that they can't prove is mine to another company?

2. I thought there was some kind of notification process a collection company had to do before they could list a new account?

3. What can I do?

4. There is got to be something wrong or illegal with the way it went down, right??

Now with the lates I'm going to try a goodwill letter and see if I can get those removed.

Any advice would be greatly appreciated, Thank you Everyone

---

Well, I'll be painfully honest. If your score is under 620, you need just about a perfect file. If your score is 620-640, you can have a collection on record and MAYBE one late. Other than that, you need to be in the 660 ranges for them to overlook things.

Mine was 650ish when we tried Direct and were told no. We had a late on our gas and electric payment. Considering we live is SIBERIA (WI), it's not hard to have a late on your winter heating bill!! We were shot right down...no questions asked.

We then tried Guaranteed, which worked out just fine.

So...you have several strikes against both loans. Collections and recent lates, plus you are under 620. After your lates hit a year old, and your score is over 620, then you will have a shot.

Message Edited by WannaHouse on 07-17-2009 08:17 PM