Should we have this tradeline removed?

[fairclok]

HI all,

My sister is about to begin refinancing her home.    Her mortgage has changed servicing companies 4 times in the past 7 years.     One of the servicing companies is no longer in business and they are reporting her at 30 days late twice on 11/2010 and 12/2010.    They held the mortgage for approximately 2 years.

She knows she has never been late on her mortgage.     We sent letters to company but they have not responded.   Their website says they have ceased operations. 

She needs approximately 12 points to quailfy for her refinancing.         

I've been through the rebuilding process and I'm not too sure about this one. 

If we had the entire tradeline removed would it impact her score Positively or Negatively?        This mortgage is showing up two other times on her other credit reports with the new servicing companies with no lates reported.     

I'm thinking the 30 day lates reporting on this tradeline are hurting her more than the positives of this tradeline.

She does have other tradelines (credit cards with lates reporting) and some collections (paid with Midland).  I'm aware the impact to score is relative, but I just want to get a feel from the rebuiding experts what course of action she should take.

Thoughts?

[juggalo9er]

i would say dispute them.....will be a tough one considering there is noone to answer the dispute

[DaBears]

The 30 day lates are no longer affecting her score. Installment loans have a different util compared to credit util. Fastest way to bump her scores would be to get her credit card util between 1-9%.

DaBears

[fairclok]

Thanks DaBears.   Thats what I needed to know.   I will not dispute them then, even though we have documentation showing they are incorrect.    My biggest fear was that since the Mortgage Company doesn't exist, the account would get deleted rather than corrected if we disputed. 

[fairclok]

Just any fyi.   Her Utilization is already between 1-9%.    

[DaBears]

It will be deleted as the company does not exist anymore. That TL will turn positive at 7 yrs from the date of each occurance and will remain up to 10 yrs from date closed.

[fairclok]

So in your opinion, there is no benefit to removing the TL by diputing in the next 45 days for example?   I can't find anywhere on her credit reports to sqeeze out 10-15 points. 

I thought maybe a tradeline with the lates reporting would get me going in the right direction.   (Note:   There are two other 30 day lates on this tradeline but they are from 2008)

[DaBears]

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@fairclok wrote:

So in your opinion, there is no benefit to removing the TL by diputing in the next 45 days for example?   I can't find anywhere on her credit reports to sqeeze out 10-15 points. 

I thought maybe a tradeline with the lates reporting would get me going in the right direction.   (Note:   There are two other 30 day lates on this tradeline but they are from 2008)

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You do not want a dispute comment on that TL. It will raise an eyebrow with the underwriter and he/she will request to have it removed cause having a dispute comment on a OC account removes certain factors out from scoring. 

I keep my util % at 5% every month. That give me the best possible scoring. Took me 6 months to play around with the util%.

[baggy2]

Thanks for the response.   I agree, she does not want any dispute showing up on a TL when going for a mortgage.    Her report needs to be clean.      

I guess where i'm trying to go with this is, if she disputes, waits the 45 days and there is no response from the original creditor, the TL would be removed.     At which point, how would this removal impact her score?

[baggy2]

fyi.  i'm on my sister's myfico account as well with her responding to this post.     we are jumping back and forth as we try and figure this out.