Mortgage Loans

[Jessierjohns]

I Just got pre-approved for a mortgage yesterday, yayyyy right? Not so fast, a collection agency showed up on my reports and made my score go down nearly 100 points I seriously want to DIE! This agency was suppose to be deleted since they no longer held my debt, and I had a letter from them, so please someone tell me what happened? What happens with my pre-approval? I already called Trans and XP, and initiated disputes with them, although I know disputes won't look good toward closing I figured I was early in the game to get it handled. Call CA and they are stating that they no nothing about the letter ALTHOUGH IT IS SIGNED BY THEM! Someone please help me 

[KatieKatie]

FWIW I had a collection show up on Experian 5 days before I applied. It lowered my FAKO score by 49 points and I later found out my lender pulled FICO was 41 points lower. I immediately disputed it. I mentioned the dispute to my MB who did not think it would be a problem and I cleared automated UW. On 10/19 I received an approval with conditions, none of which involved credit accounts. They were the most minor conditions, like provide Chapt 7 discharge ppwk to confirm it was not within the last 2 years, provide copy of canceled earnest money check, copy of insurance binder, etc. Luckily I received confirmation this week that it was deleted by Experian but that was after I cleared UW. My MB went through Flagstar. There is hope if you still have a 640 middle score and the date of last activity wasn't recent. Good luck!

[Jessierjohns]

Thanks KatieKatie for the Advice! I know I will have to tell my MB about it, but it's a bit disappointing. I hope he wont lose faith in me. My middle score was the one who took the hit of 100 points putting me 583  

[KatieKatie]

Hang in there, I bet you're MB will support you and provide some good advice.  I would definitely send a copy of the letter you have to the credit bureaus as well in reference to your disputes.  Best wishes

[webhopper]

If you have a letter; they can fix it using rapid rescore. Don't dispair

[Jessierjohns]

Thanks KatieKatie and webhopper I guess that I can breathe a temporarily sigh of relief :-)

[webhopper]

MBs can work wonders. Mine went toe to toe with santander who was inaccurately reporting a CO in 2010. In 2006 ex husbands truck repoed. Loan was with citi financial 2007 judgement entered against me for 18k 2008 garnishment 2009 settled in full Dec 2009. Santander buys citis loan portfolio... I have a document saying my "account" with citi was at 0 balance in December 2009. August 2010 santander reports a CO on August 2010 I ended up getting a letter from santander apologizing for the "mistake" MB threatened their executive office with a lawsuit while I was on a 3 way call. My EQ score increased by almost 40 points... 656 > 694 Found out the judgement was dismissed by the judge... got it removed from all except EX

[beb86]

YMMV but my LO only pulled my credit once and that was for preapproval my CRs were good for 90 days but it is a slippery slope if underwriting wants to pull your credit again before closing 

[Jessierjohns]

I am applying for an FHA 203k loan, and the collection is for $420, do you think I still fall under the fha guidelines? I just can't believe my score went down that many points from one collection arghhh

[beb86]

FHA proposed changing the rule back in April I think from under $1000 as the threshold in unpaid outstanding debts (collections) to they have to be less than $500 and over 24 months old but I don't think it ever passed. But keep in mind those are the FHA guidelines and lenders will typically have stricter regulations