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Dispute with Experian if can provide proof when the account was paid off submit it with the dispte. The lates should not report after the account is paid off.
Actually, since you are in the middle of mortgage approval, your mortgage lender can take the paperwork you have about the loan being paid in full in Feb 2012 and either do a credit supplement with the CRA or just use the paperwork as is. Pretty sure they will want to do a credit supplement. Speak to your LO for guidence They don't want you to have active open disputes on your credit report during mortgages (typically).