Verified!!!!Manual vs. Automated

[MichiganMommy]

I disputed a few collections. A few fell off and a few came back verified. I know that the few that came back verified will ding my credit score for a few points, BUT will it look like new collections if I try and do a Automated Underwrite? I think I just shot myself in the foot AGAIN! This is so confusing and scary!!!!!!!!

[ShanetheMortgageMan]

It'll only look like a "recent" collection if the date of last activity was updated from the previous date.

[MichiganMommy]

Shane or Dallas,

No... the active date has remained the same. The only thing that changed is date reported. How come that puts a ding on my score, but will not be viewed through automated as a new collection????

Thanks for the assistance!

[DallasLoanGuy]

no, viewed as an old collection. it will read date of last activity or collection/charge off date

[MichiganMommy]

Thanks Dallas. You just made me happy! I don't have any recent collections. They are all old. Some are so old I disupted them because there was some inaccurate and flat out wrong information. They came back verified and now I need to dispute them again. I may actually get them taken off because I found the correct documentation.

I was nervous when these showed up with new "reporting" dates. My midscore is close to 580 (570 now) and so my LO has advised me to try automated because everything else is sound.... I have one account reporting late in the last 12 months so FHA manual has been denied, but FHA automated will not be tried until my score gets above 580.

[DallasLoanGuy]

fha automated can indeed be done NOW. your loan officer is lazy.

obviously, you would want to get scores up before you find a house.... as rates are a little more.

there is nothing magical about 580 and approval. it is a pricing benchmark.

[shalane85]

Can anyone explain why someone may be denied manual underwriting then approved automated underwriting?