topic Re: Question on USDA mortgages with disputes on old charge-off in Mortgage Loans

Question on USDA mortgages with disputes on old charge-off

Samy13 — Sat, 20 Aug 2022 22:25:45 GMT

Hello

I had disputed an old chargeoff that is 5 years old. It is my only negative item left on my report. How will USDA look at it? Should I try to have the dispute removed ? Will they make me pay this charge-off ?

Thank you in advance !

Re: Question on USDA mortgages with disputes on old charge-off

ShanetheMortgageMan — Sun, 21 Aug 2022 21:13:54 GMT

USDA doesn't require charge-offs to be taken out of dispute. USDA also doesn't require accounts with no delinquencies in the past 24 months to be taken out of dispute. From your description it appears your account meets both of those exceptions so it'd allow to remain in dispute on your credit report. USDA also doesn't require charge-offs to be paid.

Re: Question on USDA mortgages with disputes on old charge-off

Samy13 — Sun, 21 Aug 2022 21:59:48 GMT

Thank you so much @ShanetheMortgageMan

Re: Question on USDA mortgages with disputes on old charge-off

Samy13 — Sat, 27 Aug 2022 01:34:55 GMT

Updating this. My loan officer with Fairway emailed me today that USDA does have issues with disputes and wants to pull a new report. I told her to hold as I do not want an inquiry until I fix what needs fixing first.

Any thoughts @ShanetheMortgageMan ???

Re: Question on USDA mortgages with disputes on old charge-off

ShanetheMortgageMan — Sun, 28 Aug 2022 19:59:15 GMT

@Samy13 wrote:
Updating this. My loan officer with Fairway emailed me today that USDA does have issues with disputes and wants to pull a new report. I told her to hold as I do not want an inquiry until I fix what needs fixing first.

Any thoughts @ShanetheMortgageMan ???

The way I'd personally respond to it is ask the LO to send you USDA's guidelines regarding disputed accounts and ask which disputed account(s) requires the dispute to be removed. It's important to get the guidelines from them because this will prove to you that the loan officer either knows USDA's guidelines or not, they might just be thinking "I see a disputed tradeline, therefore the dispute needs to be removed" when in reality that might not be the case.

USDA's disputed trade line guidelines are: