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Need some advice - here's my story

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sleauxmeaux
Valued Member

Need some advice - here's my story

I'm in the process of purchasing a home. First time buyer. Home is currently being built and will be finished by mid January. I was pre-approved by my broker, a family member is a builder and giving me a great deal.

Now, I had lots of nearly 7 year old negatives on my report. In August, I had the broker pull my scores. Experian - 616, Equifax- 610 and Trans -554. Long story short, I needed a middle score of 640 before we could start the loan process. So, I paid revolving balances down from 70% to 4%. A bunch of the old negatives fell off and now I'm left with 3 collections. All 3 are only reporting to Equifax. Two of the collections are with Crystal Moroney Law Firm (original creditor CVS) and they are supposedly 2 returned checks for $11 and $70 but now with fees and such, they total around $300. I truly had no memory of these returned checks, called the collection company and they seemed sketchy. The other collection is with Telerecovery for a medical collection in the amount of $200.

The two CVS items - I called the CA, asked for some verification and they rattled off check numbers. Of course this was in April 2007 and I have no clue if valid. I asked the guy if I could pay the collections and if they would remove them...he said they would after I paid them. I felt uneasy about it since I had nothing in writing so I just put it aside.

The medical collection - I haven't contacted but it was placed in collection as on April 2009.

So, today my broker pulled my reports again to see where we stood after doing all the things I needed to do...my Experian - 652, Equifax - 637 and Trans - 604. Big improvement over 3 months time but I still need 3 points to reach 640. The lender ask that I call the CVS collection folks again and try to get them removed with something in writing or via email. He never mentioned the Telerecovery item. Do you think it would be in my best interest to contact Telerecovery and ask for a PFD and explain the situation? This item I know for a fact was just overlooked on my part and I totally forgot about it until I had my reports pulled in August. This collection is more recent than the other two so I am curious if you think I should attempt the PFD with them rather than contact the sketchy people?

Any advice is appreciated.
Message 1 of 13
12 REPLIES 12
sleauxmeaux
Valued Member

Re: Need some advice - here's my story

Anyone?
Message 2 of 13
newmomnewme
Valued Contributor

Re: Need some advice - here's my story

If you can do both then do both and see which one works. ...time is of the essence for you right now so playing the letter game right now is probably unrealistic. 

 

Is there anything you can do with your revolving credit? lower your util? or is it still at 4%?  I say call the sketchy people back and see if they can fax you something in writing....or record the phone conversation? 

 

Best of luck!!!

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Message 3 of 13
juggalo9er
Valued Contributor

Re: Need some advice - here's my story

assuming i understood your post right you have collections on your credit report? i would call the collection agency and tell them you will pay in full if they put in writing and mail it to you that they will delete report to cb.

Message 4 of 13
guiness56
Epic Contributor

Re: Need some advice - here's my story

If the medical is a newer collection it would garner more points for a deletion than the older ones.

 

I would try that first, as medical collections, for the most part, seem easier to get deleted.  There are those that flat out refuse to work with you.

Message 5 of 13
sleauxmeaux
Valued Member

Re: Need some advice - here's my story

Thanks all of you!

Yes, I have 3 collections on my Equifax report. Two of the collections are with Crystal Moroney Law Offices (previously Northeast Legal it seems...assigned 4/2007) and they are super sketchy. These two collections are for two checks that were supposedly returned to CVS yet I have no memory of it. Very small amounts! These should fall off sometime early 2014. The other collection is a medical bill for $200 with Telerecovery (date assigned 4/2009).

I sure wish I would have been more conscious of my credit score/reports in the past Smiley Sad

Time is a factor for me being that I'm in the process of a mortgage loan. I cannot do anything to screw up my scores.
Message 6 of 13
sleauxmeaux
Valued Member

Re: Need some advice - here's my story

Update: I called the medical collection company and was told that if I paid it, they would report to the bureaus "PAID" but they did not do deletions. They said it would stay on my report as PAID until the end of 2015.

 

So, i called the doctors office and explained. They agreed with me that it should be removed since it would be paid. They called Telerecovery for me and still no luck. They were told the same thing!

 

So what do I do? I need 3 measly points to get my middle score at 640. Remember that I cannot take out new loads or do anything to jepordize my credit being that I'm in the process of building a house as I type this. 3, THREE, TROIS ...points!

Message 7 of 13
ezdriver
Senior Contributor

Re: Need some advice - here's my story

A 640 score permits auto underwriting and slightly less documentation requirements. A 620 is the minimum required for manual underwriting. Is you continue to pay your bills on time and drop your utilization to 3% or below, you should easily get to a 640 by the time you close on your house. Also, your lender should have a tool available to them to model your credit profile and see what various actions will produce what likely results. If they do not have such a tool, you should consider finding a better-equipped lender.

Message 8 of 13
sleauxmeaux
Valued Member

Re: Need some advice - here's my story

Hi there. My lender did provide me with suggestions based on the tool. He stated that getting one of the collections removed would do the trick. My utilization has fluctuated over the last 3 months from >20% to 7% to 2% and so forth. My score (from myfico) has stayed the same over the last month 1/2 though. I figured if I went down to 1 or 2 % it would do the trick but it never budged!

 

Anyway, I paid the two collections from CVS just a few minutes ago. BEFORE I even asked about removal/delete, the CA guy told me he would make sure they are DELETED from the bureaus. I said "I do not want them reported as Paid...I want them gone...like they never existed" He verified that they would. He will send me a letter via email stating just that as soon as the payment was processed. I received email confirmation that the transaction was complete but it hasn't showed up as pending on my bank account yet. As soon as that happens, I hope he holds his end of the deal and removes them.

 

Next question: Once he contacts Equifax and says to REMOVE them, how long before I see that they are gone?

Message 9 of 13
rootpooty
Valued Contributor

Re: Need some advice - here's my story

your not going to get accepted offers via phone on a PFD.  If you want better results send a PFD letter and you stand a better chance on getting your offer accepted

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Message 10 of 13
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