Established Member
Posts: 33
Registered: ‎07-30-2012

new collection kept me from getting my mortgage need help :(

I am in the process of purchasing my home.  Just yesterday I was suppose to receive my preapproval letter.  Well, my world came crashing down yesterday morning.  I woke up to an email with a credit score change.  I logged onto and low and behold, I had a new collection account! WOW!  My score took a 33 point dive.  I called the CA immediately because I assumed that since I was calling the day that the debt had been applied to m acct that they would consider a PFD. NOPE!  Nothing!  I paid the creditor in full hoping that this would help.  Well I got my rejection letter yesterday.  Here is the thing, towards the end of last year, the original creditor was DELETED from my credit report, so I assumed that the debt was not valid.  Now, many months later it pops up as a collection.  I have paid the collection in full but the damage is done. I am desperately trying to get this removed so that I can move forward with the purchase of my home. 

Starting Score: 517
Current Score: 638
Goal Score: 700

Take the FICO Fitness Challenge
Regular Contributor
Posts: 212
Registered: ‎09-25-2012

Re: new collection kept me from getting my mortgage need help :(



Sorry about your predicament - I am about to enter the housing market, but worried about COs showing up in the process .... well, take heart, and reapply.  I am sure there is a light at the end of the tunnel.


cheers, Oy

Starting Score: USAA-FACO(10/2012) - EX=498 / EQ = 498 / TU = 508
Recent Scores:
myFICO - Jun-2013: EX=595 / EQ = 582 / TU = 649
myFICO - Nov-2013: EX=634 / EQ = 649 / TU = 666
LenderPull - Nov-2013: EX=682 / EQ=649 /TU=687

Goal Score: 700

Take the myFICO Fitness Challenge

WALLET (Secured):  Capital One: $700  --- WellsFargo: $300 --- CapitalBank: $300

Regular Contributor
Posts: 168
Registered: ‎03-24-2011

Re: new collection kept me from getting my mortgage need help :(

If you paid the OC I would by all means call them! Have them send you confirmation that it was paid and get that proof to the collection company.


I had a similar thing happen to me but I was actually in the middle of the loan process and the underwriter pulled another report and low and behold...a new collection account appeared and they denied the loan, and I lost the house. BUT!... five months later I did what I had to to get my score back up and found a much better house. So don't get discouraged, it will work out. :smileyhappy:

Posts: 12,952
Registered: ‎04-15-2011

Re: new collection kept me from getting my mortgage need help :(

+1  See if you can get that removed.  Also make sure you opt out!

Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Mega Contributor
Posts: 18,444
Registered: ‎03-19-2007

Re: new collection kept me from getting my mortgage need help :(

The only option you might have under the FCRA is if the deletion by the OC of their reporting resulted from a dispute you filed.

In that event, no other party can have the deleted information reinserted unless they first provide pre-certification of its accuracy to the CRA, and the CRA has accepted that pre-certification.  If the CRA had received any such pre-certification, they were required to have sent you notice to that effect within 5 business days of their reinsertion, so they obviously did not do so.  FCRA 611(a)(5)(B).


However, if the OC deletion was on their own, and not the result of their failure to have provided verification in a dispute, any party can reinsert the information without any special provisions.

Posts: 4,189
Registered: ‎03-24-2008

Re: new collection kept me from getting my mortgage need help :(

Locking thread due to similar thread found here..



OP, I combined your threads to avoid confusion but most of all, to give to the best advise as possible.

LIGHTNIN, myFICO Moderator


FICO's Oct 2013 TU711 EQ713 EX723~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+