score dropped right before closing

[soxcited]

Hi all. A new collection just showed up in my credit report, dropping credit score 24 points. I will close next week so I am freakin out. Is there anything I could do at this stage before the second credit check? The debt is not mine. Can I start a dispute? It is showing up only in TU. How fast is TU in resolving disputes? Thanks in advance for any inputs. 

[soxcited]

Any thoughts?

[Anonymous]

I think your only chance is to pay it and request a paid in full letter either sent to you via fax or to your loan officer.  If you dispute this you will probably not close and will have to wait until the dispute is resolved. Wow...good luck..

[Anonymous]

+1 to sredworb. 

I would also talk to your LO and let him/her know what's going on.  The earlier you have this conversation the better off you'll be....the last thing you want is to suprise the bank right  before closing when they pull that last CR!!  Good luck, let us know how it goes.

[Anonymous]

how much is it? If its a trivial amount and just because ur sooo close to closing, I would say it pay it and get a PFD letter and debt satisfaction letter. Ensure you let your LO know about this and clarify this is not your debt and you are only paying it because you are close to closing.

[Anonymous]

A few points to make.

You need to contact your LO right away and MAKE SURE they talk to your UW.

Depending on your file, the recent collection alone couldbe enough to kill the deal.  They usually want to see 12 months clean credit.  IF your file is otherwise strong it should be something they can figure out.  ALmost certainly they will require it either removed or paid off prior to close.

You can attempt to get a PFD, but there is a very strong chance that even if they agree (which they do not have to), that they will not have it removed and settled by next week

Something like this can be a minor issue that requires little more than a little paperwork or it can be a deal breaker.  It depends upon the situation and the overall file.

Good luck with it.

[soxcited]

It is for $100... I had 12 months clean credit, until this showed up.  I can't believe this is happening...

[JM-AM]

While it isn't at the best time with your closing coming up, since you are saying that this isn't your debt, call the OC and see if they can rectify the error. If they verify the mistake ask them to send it in writing to you asap via fax and or email, both if possible, so you can have it to show your LO if needed. They will delete the negative account if they verified it is not yours., but may not be soon enough for your final CR pull before closing.

Unfortunately if they can't verify the mistake and it was assigned to a CA then you will have to deal with the CA. Being that you have limited time before you close the disputing process with CA will take awhile and not in your best interest. If this is the case I would just offer to PIF for deletion and have them send it to you in writing if they accept. The two issues I see are they do not have to delete the information, and if they do accept your offer and delete as requested, it may not be deleted in time. Either way you still are going to need to pay this debt for mortgage to go through, just make sure you get something in writing saying paid satisfactorily to have on hand for LO.

As mentioned earlier let your LO know asap as this may cause a bigger problem and keep you from obtaining your mortgage.

Hopefully the OC will verify the error for you.

Good Luck