disputes and FHA

[Anonymous]

I was just reading on here that if you have any open disputes, that will disqualify you for an FHA mortgage.

Two years ago I disputed 2 items on my credit report that were reporting incorrectly, they sent me a letter that they were reporting them correctly so I just gave up the fight (both of these were Wells Fargo cards).  I also sent a goodwill letter to Wells Fargo Home Mortgage to see if they would remove my one 30-day late, and once again, denied.  I didn't dispute that however, but they put that I did dispute it on my credit report.

So now I just noticed that all 3 of these accounts say "disputed by consumer" on my credit reports.  What can I do to just have them close these disputes so it no longer say that anymore.  I don't care about resolving them, I just want them closed in case I try for an FHA mortgage in the future.

thanks for any help!

[Anonymous]

I currently have two accounts (one on TU and on on EQ) that have "dispute" in the comment section of my CR's. These accounts have not been in active dispute status since several months ago. However, I can't get approved by the lenders for a FHA loan even though I have FICO scores of 801 & 724. So, I would recommend that you get them removed ASAP.

I've been trying for the past 30 days to get them removed without any luck. The OC's are saying that the CRA's need to remove the dispute comments and the CRA's are saying that the OC's have to tell them to remove them. I even had to open up another dispute (with EQ) to remove the dispute.....crazy!!!!

I've filed complaints with the BBB but am still waiting for feedback. My next course of action will be to hire an attorney if this situation isn't rectified soon.

I wish you better luck than me.

[DallasLoanGuy]

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@Anonymous wrote:

I was just reading on here that if you have any open disputes, that will disqualify you for an FHA mortgage.

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it 'might' effect you.

no guarantees either way

 

[Anonymous]

Does anyone know if this is a fairly recent thing?

I did most of my post-BK cleanup a couple years ago. Things I disputed were either deleted, corrected or "verified". In any case, once an entry was investigated there was no lingering notation on my credit report.

[Anonymous]

I really think there's a difference between an *open* dispute and a notation that states that the consumer disputes this account.

I say that because when we apped for our mortgage back in Dec/Jan, we had three medical collections (2 paid, 1 unpaid) that stated that the "consumer disputes this account" (the initial dispute had been completed roughly about 2 months prior) and our LO (Countrywide) didn't say a single word about it.

FTR, we only disputed as part of the HIPAA process - we had sent the initial dispute to the CRAs and then just .... never followed up (lazy me).

[Anonymous]

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@Anonymous wrote:

I currently have two accounts (one on TU and on on EQ) that have "dispute" in the comment section of my CR's. These accounts have not been in active dispute status since several months ago. However, I can't get approved by the lenders for a FHA loan even though I have FICO scores of 801 & 724. So, I would recommend that you get them removed ASAP.

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Is that the reason the lender actually gave you for the denials? Last post I read by you (its been a while, sorry!)  thought it was because of $65K in COs.

I just don't think it would be productive to have the OP spinning their wheels in order to get non-active dispute notations off their CRs when they could likely be doing other things to clean up their files.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

I currently have two accounts (one on TU and on on EQ) that have "dispute" in the comment section of my CR's. These accounts have not been in active dispute status since several months ago. However, I can't get approved by the lenders for a FHA loan even though I have FICO scores of 801 & 724. So, I would recommend that you get them removed ASAP.

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Is that the reason the lender actually gave you for the denials? Last post I read by you (its been a while, sorry!)  thought it was because of $65K in COs.

I just don't think it would be productive to have the OP spinning their wheels in order to get non-active dispute notations off their CRs when they could likely be doing other things to clean up their files.

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As I stated in numerous posts, several of my accounts were due to fall-off my CR's (and have) in April and May. I now only have 2 accounts in derogatory status totaling approximately $12K. I've also moved onto to another deal so I'm on my second home contract.

Just today, my LO specifically told me that I'm denied unless the word "dispute" is removed from the comment sections of my CR's. Either that or get the TL's deleted. Also, I'm not required to pay any money on these derogatory accounts. The "dispute" comments are the only thing preventing me from getting approved.

So, I'm just trying to help the OP based on my personal experiences. He/she can determine whether they want to follow my advice or not.

Message Edited by schlebrock on 05-06-2009 05:24 PM

[nathan]

Does this so called dispute rule madness apply to va loans too? I think another logic now is that if you dispute, you are more likely to default on your mortgage. If  you have been denied for a va mortgage because of disputes, please share your experienve with your lo. I hate to think i will have to call those clowns at the credit bureaus to beg them to remove dispute comments before I can get a va loan.

[Anonymous]

From what I understand, Fannie and Freddie backed loans MUST have all disputes resolved/and or removed.  FHA, etc are not required, but alot of the lenders/buyers/investors are taking a cue from Fannie and Freddie and adding that stipulation...Espeically with any loans that are bordeline.

The main reason is that there is a common practice of disputing everything on your credit report hoping that they will not repsond in time and get negative items removed.  The CC compnaies had gotten kind of lazy (and collection companies are VERY LAZY) about repsonding to dispute marks.  So, people would send out dispute letters for everything.  All of a sudden the FICO would jump 100 points when what was mostly accurate info was removed because the banks/agencies did not respond in time.  This was inflaiting people's FICO reports above and beyond what their true credit history actaully was and leading to higher defaults....Magically, people with a bunch or disputes are more likely to default down the road (maybe because they were disputing accurate info and the FICO was not accurate....)

[Anonymous]

Thanks for all the responses.  Wow, I didn't think having those dispute comments left on your CR was that big of a deal, but I guess it is...just another thing to worry about credit-wise

All three of mine are with Wells Fargo, who is no fun to deal with, so I guess I will start by calling them.  Thanks for the advice and I'll start the process now so hopefully I can get these corrected by the time I want to get a mortgage.