Rebuilding Your Credit

[pecic23]

Hello all,

I am currently trying to get pre approved for an FHA loan to buy a new house.  My scores are Ex: 623, Eq: 641, TU: 642, but the loan officer (Wells Fargo) is telling me that my application will have to be manually underwritten because I have an account in dispute on my credit report.  The problem with a manual underwrite is that they will only loan me up to 41% DTI instead of the usual 45%. 

 The account in question is thru Midland Credit Management, in which I sent a DV letter to but heard no response.  Now, they have stopped trying to collect the debt and all that, but they are still screwing me on buying a house. 

I guess I just don't know what to do now...  Just pay the debt to get them out of dispute status on my CR?

Thanks in advance

[Creditaddict]

Have you disputed this with the credit reporting agency's to have it deleted and it comes back verified?

[pecic23]

No, I haven't done that...  I need to look into how to do that

[llecs]

If you dispute it, that comment will stay even longer.

When did you send the DV?

[pecic23]

I mailed out DV on Sept 28, 2009 and got the signed copy of the return request about a week later

[llecs]

2009? If from last year, you could try calling the CRAs and ask them to delete the comment. That may or may not trigger a new dispute though.

[pecic23]

So they would just delete the comment and that's it? 

But then wouldn't I have to still pay for it, even though they never validated the debt?

Thanks

[llecs]

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pecic23 wrote:

So they would just delete the comment and that's it? 

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It usually works, though I hear EX can be a problem.

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pecic23 wrote:

But then wouldn't I have to still pay for it, even though they never validated the debt?

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Depends on your lender. Some care and some do not. I'd talk with your LO.

[MelindaF]

I'm not sure how much time you have and I can't say it will for sure work for you, but I got rid of my Midland tradelines by disputing them with the credit bureaus. I never received a response to a DV either.

Good luck!

[pecic23]

I'm not sure how much time you have and I can't say it will for sure work for you, but I got rid of my Midland tradelines by disputing them with the credit bureaus. I never received a response to a DV either.

Melinda, how did you do this???