PLEASE HELP ME!!!!!

[Anonymous]

I will try to make this a short story, switched mortgage companies because the loan officer was absolutely clueless about mortgage loans. Got preapproved with new mortgage company. middle score 640 highest score 675. Going with a FHA loan with 4.75 rate. 2 baddies, one for $634 with Sprint from 1-2008. Well got an alert from myfico that a new collection (which is for sprint) account was added to my credit report. My score dropped 102 point, transunion. The accounts was sold to a different agency. The problem is my file goes to underwriting on Tuesday. I did call the LO and she seems to think that they will not need to pull credit again. The new collection agency is reporting the wrong dates and I don't think I should try to dispute them with the CRA. I will call them tomorrow to see if they will do a PFD. PLEASE myfico forum pals advise me on what I should do. Thanks.

[ShanetheMortgageMan]

You can go down the road and take the chance that they will re-pull credit later, perhaps a day before closing, and you'd have to deal with it then... or my recommendation is to inform them about it now and give you enough time to deal with it before closing.  Definitely stinks it was added, but you definitely want to be prepared IMO.

[Anonymous]

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@Anonymous wrote:
I will try to make this a short story, switched mortgage companies because the loan officer was absolutely clueless about mortgage loans. Got preapproved with new mortgage company. middle score 640 highest score 675. Going with a FHA loan with 4.75 rate. 2 baddies, one for $634 with Sprint from 1-2008. Well got an alert from myfico that a new collection (which is for sprint) account was added to my credit report. My score dropped 102 point, transunion. The accounts was sold to a different agency. The problem is my file goes to underwriting on Tuesday. I did call the LO and she seems to think that they will not need to pull credit again. The new collection agency is reporting the wrong dates and I don't think I should try to dispute them with the CRA. I will call them tomorrow to see if they will do a PFD. PLEASE myfico forum pals advise me on what I should do. Thanks.

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Did the new CA send a dunning letter to you?  I thought when they purchase bad debt, they must send a dunning letter allowing 30 days for a consumer to dispute before they can place it on your CR.   Since it is currently on your report, if you send a DV letter, I believe it will state on your report that you are disputing, which can make your scores go up, but can also hurt you according to my LO.  It  reduces your buying (home purchase price) capability.  She said every account in dispute  lowers the amount you can purchase by $10K.

[Anonymous]

Thanks for the replies.  I called the LO to tell her.  She still believes the UW would not need another credit report because its a new construction loan. I have my fingers crossed on this one.  In the mean time, ER Solutions has reported account information to two credit report, the other agency or name is WCI.  Not sure why they do this, but I called them tonight and they have agreed for a PFD.  And yes I know, I need the information in writing. Therefore, I must contact them in the morning and request the fax, once received I can make the payment via money gram.  Hopefully, this would take my score back up. 

If need be, can the LO do a rapid rescore if I get a PFD letter with proof of payment?

[ShanetheMortgageMan]

Correct, with new construction credit reports aren't rechecked until after 120 days from the original credit report date.

In your case for a rapid rescore, the creditor/collection agency would need to write something stating the collection shouldn't have been on there in the first place.  They won't accept a PFD letter plus proof of payment.