Will 2005 Late Mortage Dispute w/ EQ drop my score? Please help!

[Lawlover2]

We recently applied for a 2nd home mortgage for a vacation home.  We had been approved for a primary home loan purchase but DU kicked out a 2nd home loan b/c a mortgage from 2005 was showing foreclosure (new 7 year look back for Fannie/Freddie on 2nd homes).  We were late, but never foreclosed.  So, I started the process w/ EQ to correct (disputed).  Today the loan officer calls and underwiting spoke w/ title company and there is no foreclosure need so, they said we should be good to go.  My question is, what will disputing this do to my CR?  I know there is a "reaging" issue w/ Charge-off's and credit cards but wasn't sure w/ mortgage updates.  We refinanced in 2006 and haven't been w/ that company (or late) between then and now.  I'm terrified disputing this will lower my score  - particularly now that the loan is going through . . . So, will this impact my score and if so, can I call EQ and tell them I no longer wish to dispute?  Please help!  My EQ is 690 and TU is 701 - only one I disputed was EQ.

Thanks!!! 

[Anonymous]

 More than likely the dispute will have to be resolved and all dispute comments removed before the loan can get approved (this can at times take awhile).  ALso, how late were you on the loan.  Most banks consider anything over 90 or 120 days late the same as forelcosure even if you ended up keeping the home and rehabbing the loan.  SO is there an actual foreclosure showing, or just that the loan defaulted?

[Lawlover2]

We were late several times, may have been 90 days but seriously do not believe we were ever 120.  Interstingly, the bank specifically told us they do not consider 120 days as a foreclosure - they said that it had to be "coded" that way and depending on what they pull, sometimes it said "foreclosure" sometimes it didn't.  At this point, we are locked in at 4.5% w/ 10% down which we are very happy with, I just do NOT want my score to go down before closing simply b/c I disputed an item . . . but I thought that was my only hope at the time!  Anyone know what will happen if it is verified?  It won't show date of last activity as November 2010 will it???? It currently show date of last activity as 2006!