Please help, desperate - collections, need mortgage

[Anonymous]

Hi - I'm hoping to buy a first home and just pulled my credit from experian directly and also transunion/equifax via CreditKarma.  I've found I have two collection items on my report and need to get one or both removed asap as I am trying to buy a house.

All 3 CRAs list $460 with PINNACLE CREDIT SERVIC or PINNACLE CREDIT SERVICES LLC (depends on cra) from Verizon.  If memory serves, this stems from my terminating service with Verizon in 2011.  I believe the DoFD with Verizon would be sometime in 2011.  EX shows this as first opened with PINNACLE on 4/1/2014, status updated 6/1/2014 and status of "Closed".  EQ also shows it but with first opened date as 4/29/2014 and status is 'open'.  Not sure what this means, and why the dates differ. TU dates match EQ.

I just opened an online dispute for this with TU through CreditKarma and with Equifax via their own online dispute system.  I have not initiated anything with EX yet.  This may have been a mistake out of eagerness to get them off on my part - I read that written dispute is preferred.  I read somewhere to start with CRA dispute and then DV them immediately if they verify it.  I don't know if that is the best route and I am willing to pay if I can get it deleted entirely although I don't agree that I owe Verizon.  I will do that for less than 460 if it will be quicker - I don't have 460 full to pay.  I could probably do 200 if they would agree though.

I also have $180 with AllianceOne from VT Judicial.  That is a speeding ticket, unanswered in winter 2014, collection opened in Aug 2014, last reported Sept 2014.  I would like to pay this and get the derog removed.  I'll pay the full amount, perhaps I should contact the court though and inquire about getting on the docket for this?  Will they recall it from the CA if I do so?  I'd really like to respond and settle up with VT.  I have not initiated any disputes on this one and don't plan to.

One other thing: I still maintain a primary address in NY for most account purposes although I've recently moved to CT.  I don't know if there is any advantage to switching over my address to CT in terms of state departments that handle consumer protection or the AG offices or BBB, or in terms of SOL, or anything else I am not considering with respect to the PINNACLE item...

How should I proceed, keeping in mind I have entered the online disputes for both EQ and TU but not EX?  I know this tends to be a long process but I really want to get the PINNACLE item off at the very least, since that will probably get me into 700's FICO (currently around 680 according to 2 CRAs). Pleaseeeeeeeeee help, I really appreciate the wisdom and my family will appreciate it as well

[Anonymous]

Welcome to the myFico forums.

I'll try to discuss some of your concerns.

First, CK is not a good place to judge your CR scores, they use a Fako score.   myFico sells solid Fico score reports along with good scores.  Credit Check Total (from EX) is another source for reports from all 3 bureaus with genuine Fico scores.  myFico would also provide your mortgage score, which would be different than other scores.

What was the basis of your dispute with TU and EQ?  You will need a reason to dispute to get results that are meaningful.

An excellent place to get the baseline reading and start for credit repair is with your free annual credit reports from the CRBs.  Some people get all 3 at once, some ppl get 1 bureau every 4 months.  Those reports are the basis for the other companies to get their reports.  The EQ report will show the actual DoFD for your derogs and is very useful.  The TU report will show the date it will roll off your reports after the 7 year mark.  EX report is also useful.  Reports from the actual bureaus show more detail than reports from other sources.

The DV process is mainly useful when a CA or OC first contacts you about collecting on a debt.  It must be filed within the first 30 days to be useful.  After receipt by the CA, it suspends debt collection proceedings until they send a validation.  If you send a DV after the first 30 days, they are not obligated to suspend activities and may not even respond.

Many mortgage lenders will not approve a loan with accounts that have not been settled.  An account that has been settled is always better than one that is open. 

GL

 ETA: I would also recommend reading lots of posts in the mortgage forum here.  Lots of folks have been thru similar items and have posted good info.

[Anonymous]

Thx for the reply - I pulled my FICO score directly from EX. The other one I'm relying on is through my Discover card statement (TU info). I'm not relying on CK for scores, only for account info.

The basis of my online disputes with EQ and TU were that I have no knowledge of this account.

I have been through a lot of threads and see a lot of different and sometimes contradictory advice.  One thing I had read was the strategy I was going to follow - dispute with CRA, which will very likley be verified but if lucky could lead to a new notice from a CA, which I can then DV based off of.  I appreciate next and quickest steps I can take.  Most of the threads out there don't help me because of the age of this.

[Anonymous]

In addition to the great info from asbinjax, definetly be ready to negotiate PFD's.

Since you have already submitted the dispute i would wait to see their response before taking the next step. If the creditor doesnt respond, it gets removed. If they do respond and vaildate the debt, it will more than likely and drop your score even more.

Do not be surprised if the collections resuface once your loan officer pulls credit. Collection agencies see that and will report again knowing you need to settle the debt to buy your house.

For that reason, if it were me, I would call each creditor to negotiate a PFD at a price you can afford. Keep in mind they do not have to accept your offer to delete, let alone at a discount, so be prepared to pay in full if needed to get it removed.

The amount of the debt is a small price to pay when looking at the bigger picture - getting the house, getting better interest, less hassle of having to explain collection items to your potential lender.

Good luck.