Sould collections be factored into my debt income ratio?

[mwmiller82]

Thanks Tooleman, I've been down this path before 4 years ago before my credit took a huge hit, got to underwriting and was denied true to dti ratio, where the damn LO knew I was going to get denied the how whole time.

[mwmiller82]

No, it was a car lease that was returned and over over. Mileage when the lease was up. The installment that is being reported is the exact amount of my car note was.

[tooleman694]

Yeah that crap is illegal, they cannot do it.

This would be a slam dunk easy delete off your credit reports.

However I would not go for a dispute in fear they pull your credit before closing a see dispute comments.

I mean you could try for a Ninja like delete and hope you make it.

[mwmiller82]

Thanks T, I'm going to wait after I get the house then dispute it!

[MovingForward_2012]

Well since the collection was a car lease, they can report installments as it was a lease, and prior to default, you made monthly payments. If the first lender sold it to a collection agency, and the collection agency's account is listed separately on your report, then yes it is illegal for them to report installments.

[DallasLoanGuy]

i have worked for several banks. i have never added a pmt to someone's dti because of an unpaid collection. i havent had an underwriter want a collection paid in so long i cant remember too

it isnt too late to try another lender.

[MovingForward_2012]

+1