LVNV Funding ruining my credit report. Should I call or send a letter?

[Burned2manybridgesB4]

...and I'd recommend reading the "common threads" in rebuild.

This one is critical for you to read.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/What-Steps-Do-I-Take-Do-I-DV-PFD/td-p/337142

[RobertEG]

A lot depends upon what issue your mortgage lendor is raising.

Is the issue primarily that they are requiring satisfaction of the debt as a pre-conditon for loan approval, or is the issue primarily removal of the collection in order to obtain a necessary score improvement?

First, regarding a DV, that would not be my recommendation.

A DV, if timely sent, meaning within 30-days after their dunning notice, imposes a cease collection bar on the debt collector, but does not impose any period in which they must respond.  Provided they do not continue collection activities, they can delay verification at their liesure.

I would presume that it has been more than 30 days since dunning notice?

Even if your DV were timely, the cease collection bar that it would impose would prevent them from any negotiations on the debt until they first provided debt verification, so you would be in limbo regarding any efforts to negotiate either a settlement of a pay for delete offer.

As for the next step, the most favoarable outcome would be for them to accept a pay for delete offer, which would both satisfy the debt and remove it from credit scoring.

However, if time is of the essence based on your need to satisfy the debt or get their reporting deleted as part of your loan process, you have no control over their acceptance, and may get no immediate response.

If time is of the essence, then I would recommend calling them.  Oral negotiations are more apt to give you a quick feel as to their willingness to accept a PFD or settlement.

Just make sure not to admit to the legitimacy of the debt, but rather state that you are negotiating simply to resolve the issue.

Thus, I would call and offer a pay for delete, and see where they stand.  Additionally offering a settlement for less will add another condition, and may affect their willingness to accept a PFD, so you I recommend you anticipate decline of a settlement for less, and whether you wish to stick by that additional stipulation in your negotiation.

[Shogun]

---

@thalia8424 wrote:

....So I think that means open, right?

---

All collections are basically considered "open" until paid.

[thalia8424]

my lender is advising me to take care of this issue to bring my score up to the minimum score required for FHA loan, 640.

I am currently anywhere between 522 and 608, depending on what CRA report you check.

I just called Transunion and was told they won't delete, but the debt is due to fall off my report by July 2015.

I'm just very scared to call LVNV. They haven't contacted me via postal mail or phone, so i'm afraid calling them will open the issue back up, and give them reason to update their dates on my report and start the whole cycle over again....

[Burned2manybridgesB4]

---

@thalia8424 wrote:

my lender is advising me to take care of this issue to bring my score up to the minimum score required for FHA loan, 640.

I am currently anywhere between 522 and 608, depending on what CRA report you check.

I just called Transunion and was told they won't delete, but the debt is due to fall off my report by July 2015.

I'm just very scared to call LVNV. They haven't contacted me via postal mail or phone, so i'm afraid calling them will open the issue back up, and give them reason to update their dates on my report and start the whole cycle over again....

---

Honestly. Wait. It sucks to hear, but believe me, I was in the same rush to buy my first home, and it costed me.

Another year, or two will save you how much more in interest? How many baddies are gone in two years? How many thousands of dollars do you want to save over the next 15 to 30 years? The home upkeep itself will suck you dry, so don't add more stress to it.

[thalia8424]

so let's say i wait until July 15, it falls off, but then it will be what, another 6 months to a year after that until i see any improvement, correct?

this is literally the only thing wrong with my report. a measly $1600 that just won't go away.

[Burned2manybridgesB4]

I don't want to give you nightmares. There are ways for lenders to see the non paid, out of date delinquencies.

It's called an FF Report. Very rarely used, but it lists everything. Usually loans over 150k are the prime usage point.

I'd consider settling on the CA,  pennies to the dollar, just to get rid of them.

Then you might have the headache of a 1099-C, but I'm not sure if that applies to CAs and OCs, or OCs only.

Takes more dilligance to get a mortgage, than just saying "I want it."

[beanie7132]

---

@thalia8424 wrote:

so let's say i wait until July 15, it falls off, but then it will be what, another 6 months to a year after that until i see any improvement, correct?

this is literally the only thing wrong with my report. a measly $1600 that just won't go away.

---

Granted that LVNV is reporting/updating monthly, once it falls off your score improvement is immediate. 

If they are not updating monthly, then score improvement may be minimal depending on when they last updated.