topic Re: new home purchase in Rebuilding Your Credit

new home purchase

Anonymous — Thu, 25 Jul 2013 14:46:20 GMT

My husband and I are going through the process of having a VA Loan approved for a new home purchase. The loan officer has already looked over our documents and thinks everything should be fine. The application is going into underwriting this week. Our credit scores are at right about 640-650 and the minimum score for their VA Loan program is 620. My husband had a car loan with HSBC years ago (not sure of exact date but its been at least 5+ years). He was in the military and says he can't recall exactly what happened with the loan but he believes the car was repo-ed. HSBC reported a $4k balance on his credit report, then transferred it to a collection agency who also reported the $4k balance on his report. We disputed this since the same account was listed twice and both accounts were deleted from his file. Great news!

Now, after submitting our loan documents and having initial credit scores pulled...we out of nowhere get a letter from a 3rd collection agency regarding the $4k. It hasn't shown up on his credit report yet. The letter says we have 30 days to dispute. Does anyone know if this can end up on his report? Even after the other 2 were successfully disputed? Any advice on how to keep this from hitting his credit file would be greatly appreciated! I know our scores will be pulled again before closing so it would be horrible if this were to impact the status of our loan right before closing.

Thanks!

Re: new home purchase

myjourney — Thu, 25 Jul 2013 16:12:25 GMT

@Anonymous wrote:
My husband and I are going through the process of having a VA Loan approved for a new home purchase. The loan officer has already looked over our documents and thinks everything should be fine. The application is going into underwriting this week. Our credit scores are at right about 640-650 and the minimum score for their VA Loan program is 620. My husband had a car loan with HSBC years ago (not sure of exact date but its been at least 5+ years). He was in the military and says he can't recall exactly what happened with the loan but he believes the car was repo-ed. HSBC reported a $4k balance on his credit report, then transferred it to a collection agency who also reported the $4k balance on his report. We disputed this since the same account was listed twice and both accounts were deleted from his file. Great news!

Now, after submitting our loan documents and having initial credit scores pulled...we out of nowhere get a letter from a 3rd collection agency regarding the $4k. It hasn't shown up on his credit report yet. The letter says we have 30 days to dispute. Does anyone know if this can end up on his report? Even after the other 2 were successfully disputed? Any advice on how to keep this from hitting his credit file would be greatly appreciated! I know our scores will be pulled again before closing so it would be horrible if this were to impact the status of our loan right before closing.

Thanks!

Welcome to the forum

In order to help you and get faster responses I'm going to ask MOD's to move this to Rebuilding Forum where you will certainly get the help you seek.

Best wishes for that new home

MOD's can we please move to rebuilding Forum....Thanks

Re: new home purchase

Anonymous — Thu, 25 Jul 2013 16:50:07 GMT

@Anonymous wrote:
My husband and I are going through the process of having a VA Loan approved for a new home purchase. The loan officer has already looked over our documents and thinks everything should be fine. The application is going into underwriting this week. Our credit scores are at right about 640-650 and the minimum score for their VA Loan program is 620. My husband had a car loan with HSBC years ago (not sure of exact date but its been at least 5+ years). He was in the military and says he can't recall exactly what happened with the loan but he believes the car was repo-ed. HSBC reported a $4k balance on his credit report, then transferred it to a collection agency who also reported the $4k balance on his report. We disputed this since the same account was listed twice and both accounts were deleted from his file. Great news!

Now, after submitting our loan documents and having initial credit scores pulled...we out of nowhere get a letter from a 3rd collection agency regarding the $4k. It hasn't shown up on his credit report yet. The letter says we have 30 days to dispute. Does anyone know if this can end up on his report? Even after the other 2 were successfully disputed? Any advice on how to keep this from hitting his credit file would be greatly appreciated! I know our scores will be pulled again before closing so it would be horrible if this were to impact the status of our loan right before closing.

Thanks!

Both the OC and the CA can report the debt so there is nothing illegal about that. In order to determine if the newest one can be reported you would need the DoFD of the originial account. If it has only been 5 or 6 years, yes, it can report for 7.5 years.

Unless you PIF or reach some type of settlement with the CA for not reporting, it can be reported.

Re: new home purchase

Anonymous — Thu, 25 Jul 2013 17:16:19 GMT

What is DoFD (date of...) and how do we obtain it (write back asking for validation)? And I assume PIF is 'paid-in full.' Would this be a huge impact on his score? I thought the longer it has been the less impact...although our lender will still ask.

Re: new home purchase

Shogun — Thu, 25 Jul 2013 18:00:31 GMT

@Anonymous wrote:
What is DoFD (date of...) and how do we obtain it (write back asking for validation)? And I assume PIF is 'paid-in full.' Would this be a huge impact on his score? I thought the longer it has been the less impact...although our lender will still ask.

DoFD is the Date of First Delinquency. This is the date where the account went into arrears. The DoFD sets the clock for the SOL and CRTP of the debt.

PIF does stand for Pay In Full. The longer it has been, the less impact is true. But paying it doesn't make it any newer. The only risk you run is if they haven't been updating for ahwile and suddenly update. That could cause a drop in points, but wouldn't change the age of the debt.

Re: new home purchase

DaBears — Thu, 25 Jul 2013 18:02:10 GMT

@Anonymous wrote:
What is DoFD (date of...) and how do we obtain it (write back asking for validation)? And I assume PIF is 'paid-in full.' Would this be a huge impact on his score? I thought the longer it has been the less impact...although our lender will still ask.

Hi mita219, the DoFD would be date of first deliquency you can call the OC(Original Creditor) or if they are listed on your credit reports the DoFD will be listed with Equifax. Transunion and Experian will have fall off dates. Has the account been updated on a montly basis? If not, PIF would more likely hurt your score even more by paying it. it all depend on if your lender will require you to pay it before granting the loan.

Re: new home purchase

Anonymous — Thu, 25 Jul 2013 18:11:14 GMT

I think you guys are misssing an important fact.

OP was asking about a CA that is not reporting yet and how to keep it from doing so.

Paying or settling with the CA for not reporting is what I suggested.

Re: new home purchase

DaBears — Thu, 25 Jul 2013 18:19:07 GMT

Guiness is correct!!!!! I completely missed that!!!! I have been up since 4am. I have no business being on the forums today

Re: new home purchase

Shogun — Thu, 25 Jul 2013 19:23:58 GMT

@Anonymous wrote:
What is DoFD (date of...) and how do we obtain it (write back asking for validation)? And I assume PIF is 'paid-in full.' Would this be a huge impact on his score? I thought the longer it has been the less impact...although our lender will still ask.

Sorry, I was answering this question...

Re: new home purchase

Anonymous — Thu, 25 Jul 2013 19:34:45 GMT

@Shogun wrote:
@Anonymous wrote:
What is DoFD (date of...) and how do we obtain it (write back asking for validation)? And I assume PIF is 'paid-in full.' Would this be a huge impact on his score? I thought the longer it has been the less impact...although our lender will still ask.

Sorry, I was answering this question...

Then I am confused lol. According to OP the OC and first CA were deleted.

At any rate, if the second CA reported, even paid in full, your score would drop significantly.

Re: new home purchase

Anonymous — Fri, 26 Jul 2013 00:56:13 GMT

Sorry for all the confusion.

-The OC (reported but was deleted) transferred the account to CA #1 (also reported and deleted)

-CA #1 transferred the account to CA #2 who we didn't even know existed

-Now the account is with CA #3 from who we got the notice

Neither CA #2 or CA #3 have reported so his credit file is currently clear. My goal is to not have CA #3 report. I'm a little scared to contact them because I feel like as soon as we respond they'll report. Do you think trying a debt validation is worth it? For one, the account has clearly been transferred multiple times so maybe they won't be able to validate it. Second, I know I have 30 days to request validation and then they have 30 days to validate...that would hopefully keep us clear through the end of September. Our closing is supposed to be anytime in October. The original debt was 2008.

Thank you all...I didn't realize I'd get so many responses in one day!

Re: new home purchase

Anonymous — Fri, 26 Jul 2013 01:01:56 GMT

Also like I originally said, my husband doesn't really recall what happened with the account so who knows what would happen with validation. Then I guess the next question is what to do if they do validate. Then I would attempt a pay to delete.

Re: new home purchase

myjourney — Fri, 26 Jul 2013 01:09:55 GMT

@Anonymous wrote:
Sorry for all the confusion.

-The OC (reported but was deleted) transferred the account to CA #1 (also reported and deleted)
-CA #1 transferred the account to CA #2 who we didn't even know existed
-Now the account is with CA #3 from who we got the notice

Neither CA #2 or CA #3 have reported so his credit file is currently clear. My goal is to not have CA #3 report. I'm a little scared to contact them because I feel like as soon as we respond they'll report. Do you think trying a debt validation is worth it? For one, the account has clearly been transferred multiple times so maybe they won't be able to validate it. Second, I know I have 30 days to request validation and then they have 30 days to validate...that would hopefully keep us clear through the end of September. Our closing is supposed to be anytime in October. The original debt was 2008.

Thank you all...I didn't realize I'd get so many responses in one day!

I see you got all your answers.....great

Wishing you the best

Re: new home purchase

Anonymous — Fri, 26 Jul 2013 01:42:58 GMT

@Anonymous wrote:
Sorry for all the confusion.

-The OC (reported but was deleted) transferred the account to CA #1 (also reported and deleted)
-CA #1 transferred the account to CA #2 who we didn't even know existed
-Now the account is with CA #3 from who we got the notice

Neither CA #2 or CA #3 have reported so his credit file is currently clear. My goal is to not have CA #3 report. I'm a little scared to contact them because I feel like as soon as we respond they'll report. Do you think trying a debt validation is worth it? For one, the account has clearly been transferred multiple times so maybe they won't be able to validate it. Second, I know I have 30 days to request validation and then they have 30 days to validate...that would hopefully keep us clear through the end of September. Our closing is supposed to be anytime in October. The original debt was 2008.

Thank you all...I didn't realize I'd get so many responses in one day!

Send the DV. You do have 30 days to send it upon receipt of the dunning notice. They, on the other hand do not have to respond in 30 days. They never have to. Once they receive it they have to cease collection activity until they do. If they did, I would offer them a pay for not reporting.

Re: new home purchase

Anonymous — Fri, 26 Jul 2013 02:06:23 GMT

So I could send a DV letter and possibly never hear about it again?

Re: new home purchase

Anonymous — Fri, 26 Jul 2013 03:04:06 GMT

It is possible. Once they receive the DV they cannot report it to the CRAs. If they don't validate they cannot send you dunning notices, call you etc,

The debt could also just be sent back to the OC and another CA pop up.

Re: new home purchase

Anonymous — Fri, 26 Jul 2013 03:16:57 GMT

Thank you again for the advice and prompt replies! I'll update this forum with any progress!

Re: new home purchase

Anonymous — Wed, 21 Aug 2013 03:08:40 GMT

Hi all,

So we got a response to the DV letter. All it included was the original finance agreement from the OC and a document stating the debt was being sold from the OC to CA #1. There was no documentation as to how the debt got to CA #3 nor was there any support of the balance they are attempting to collect. Any suggestions? The letter provided with the documents stated that under the Fair Isaacs Credit Act they didn't need to provide bills (I didn't ask for bills, asked for support on the amount). Should I respond requesting more details?

Thanks!

Re: new home purchase

Shogun — Wed, 21 Aug 2013 03:55:00 GMT

@Anonymous wrote:
Hi all,

So we got a response to the DV letter. All it included was the original finance agreement from the OC and a document stating the debt was being sold from the OC to CA #1. There was no documentation as to how the debt got to CA #3 nor was there any support of the balance they are attempting to collect. Any suggestions? The letter provided with the documents stated that under the Fair Isaacs Credit Act they didn't need to provide bills (I didn't ask for bills, asked for support on the amount). Should I respond requesting more details?

Thanks!

I think there's some confusion. First, there's no Fair Isaac's Credit Act, there's the FCRA. For a DV they must provide the amount of the debt and the OC's name if requested. That's about it. They do not have to supply anything else.

If you agree with the debt, then you can try for a PFD.

Re: new home purchase

Anonymous — Wed, 21 Aug 2013 04:04:23 GMT

I had a feeling my terminology was incorrect 😊. Don't they have to show proof that they own the debt? Otherwise why would we submit payment to them? Also, if we know we owe something but just not sure how much, don't they have to provide how they calculated the amount they are attempting to collect? My husband knows he defaulted at some point during the loan but he isn't sure what the remaining balance at the time was.