topic Re: Enhanced Recovery stopping my mortgage in Rebuilding Your Credit

Enhanced Recovery stopping my mortgage

Anonymous — Tue, 07 Apr 2015 01:08:33 GMT

I was pre-approved for a mortgage with a mid score of exactly 640 for KHC loan (Kentucky housing corporation) in early Feb after spending months working on rebuilding my credit after a divorce. Closing date was set, underwriting pulled my credit and I had item with the word "dispute," so took a little over a week to get the disputes removed. Lowered my score, no longer pre-approved. My only hope now at the advice of my LO, is to get the 2 paid collections off my report. One of them I had no problem getting a letter stating they will remove it. It's Enhanced Recovery absolutely will not do it. Help! This is only thing stopping me. Should I contact a local attorney for help? This needs to happen fast before I lose the house

Re: Enhanced Recovery stopping my mortgage

RobertEG — Tue, 07 Apr 2015 01:21:26 GMT

There is no legal basis for compelling deletion of accurate reporting of a collection.

The CRA reporting policy instructs creditors and debt collectors not to delete their prior reporting based on payment of a debt, so their refusal to delete is supported by their credit reporting agreements with the CRAs.

Best bet is to obtain the name of an upper management official who has authority to grant exceptions to their non-deletion polices passed down to their employees.

My question is if the collection was prevsiously known to your loan officer and yet they grranted pre-approval, what has now changed that resutls in their denial unless the collection is deleted? Perhaps a call to an upper management official at your mortgage lendor would be in order, as I see no substantive change since the disute flag has been removed. It seems totally arbitrary at this point.......

Re: Enhanced Recovery stopping my mortgage

Anonymous — Tue, 07 Apr 2015 01:28:58 GMT

As a first time homebuyer, I had to get my mid score to 640. Once it's at 640, it was automatically approved. The dispute didn't show until they pulled credit before closing. When the dispute was removed and lowered my score, the next thing is they ran it through a simulator, if I can get the 2 collections off, my score will jump back over 640. So you are telling me I have no hope? How would I contact someone at enhanced recovery in upper management? I talked to a supervisor and they all kept telling me the same thing.

Re: Enhanced Recovery stopping my mortgage

Anonymous — Tue, 07 Apr 2015 01:29:58 GMT

I would find a different lender. These kind of games do not bode well for actually getting the loan. Pre - approval for a mortgage should mean "we will give you a loan within the next X days." It seems your LO took it to mean, "I'd like to involve you in confusing games."

Why did you need to remove the dispute? I've heard this before and have always been confused on why lenders would require a legitimate and closed dispute to be removed.

Re: Enhanced Recovery stopping my mortgage

gdale6 — Tue, 07 Apr 2015 01:39:02 GMT

@Anonymous wrote:
I would find a different lender. These kind of games do not bode well for actually getting the loan. Pre - approval for a mortgage should mean "we will give you a loan within the next X days." It seems your LO took it to mean, "I'd like to involve you in confusing games."

Why did you need to remove the dispute? I've heard this before and have always been confused on why lenders would require a legitimate and closed dispute to be removed.

Its because certain aspects of the TL are not included in FIco scoring when its marked with a dispute comment so the comments have to be removed so the whole TL is included in the Fico metrics. All mortgage lenders will require this its not illegal nor something out of the oridinary, they want a true Fico on you.

Re: Enhanced Recovery stopping my mortgage

Anonymous — Tue, 07 Apr 2015 01:41:14 GMT

i learned this the hard way, a dispute has to be removed because when something is in dispute status, fico doesn't factor that in your score while in dispute. So, you have a false score. I have thought about switching lenders, but I am with a reputable one.

Re: Enhanced Recovery stopping my mortgage

Anonymous — Tue, 07 Apr 2015 01:48:07 GMT

Gdale, doesn't that only apply to open disputes? If a dispute is resolved, is it still excluded from scoring? That's where my confusion is.

Re: Enhanced Recovery stopping my mortgage

gdale6 — Tue, 07 Apr 2015 02:25:19 GMT

@Anonymous wrote:
Gdale, doesn't that only apply to open disputes? If a dispute is resolved, is it still excluded from scoring? That's where my confusion is.

Any comments of dispute will keep it from being totally scored, this is the info I have on it.

Re: Enhanced Recovery stopping my mortgage

Anonymous — Tue, 07 Apr 2015 02:39:50 GMT

@gdale6 wrote:
@Anonymous wrote:
Gdale, doesn't that only apply to open disputes? If a dispute is resolved, is it still excluded from scoring? That's where my confusion is.
Any comments of dispute will keep it from being totally scored, this is the info I have on it.

Very interesting! I'll have to ask the LO I'm working with the next time we have a check-in. He had suggested items to dispute, as the reporting was obviously wrong (an old car loan that reported 30 days late a month after it was PIF, for example).

Re: Enhanced Recovery stopping my mortgage

Anonymous — Tue, 07 Apr 2015 03:30:41 GMT

I've been doing some more research, apparently if I pay the OC, (original creditor), by law, they will have to remove it. Sprint will not talk to me because I forgot my pin number, and the security questions were something my ex-husband set up. It is going to be a pain, but I have to stop at a sprint store tomorrow, show an ID to get a new pin. I'm not even with Sprint anymore, I have been with Verizon for 3 years. I'm not sure if anyone knows anything about this method, but I just read a very lengthy article and all of the laws from FRCA.

Re: Enhanced Recovery stopping my mortgage

Anonymous — Tue, 07 Apr 2015 03:32:28 GMT

@Anonymous wrote:
I've been doing some more research, apparently if I pay the OC, (original creditor), by law, they will have to remove it. Sprint will not talk to me because I forgot my pin number, and the security questions were something my ex-husband set up. It is going to be a pain, but I have to stop at a sprint store tomorrow, show an ID to get a new pin. I'm not even with Sprint anymore, I have been with Verizon for 3 years. I'm not sure if anyone knows anything about this method, but I just read a very lengthy article and all of the laws from FRCA.

Did they sell it? Sprint is pretty quick to offload debt their consider uncollectable, and if they don't own it they can't take payment.

Re: Enhanced Recovery stopping my mortgage

RobertEG — Tue, 07 Apr 2015 06:41:36 GMT

Paying the OC does not require the debt collector to delete their reported collection.

They are only required to report closing of the collection and update the balance under collecton to $0.

The CRAs have a policy that debt collectors should delete theri collection if their collection authority is terianted prior to payment of the debt, but also have a policy that dect collectors should not delete their collection based on payment of the debt.

You would have to pursuade the OC to delete their assigned collection authority to the debt collector before you pay the OC in order to have the collection deleted.

Re: Enhanced Recovery stopping my mortgage

Anonymous — Wed, 08 Apr 2015 17:12:39 GMT

What is a GOOD number for Sprint to persuade them to remove it from collections and I pay them directly?I have gotten nothing but bad news today. ERC absolutely will not remove it.

Re: Enhanced Recovery stopping my mortgage

Anonymous — Wed, 08 Apr 2015 21:19:21 GMT

Interesting and very SCARY.

I have a pre-approval with a co-buyer (just waiting on paperwork) from my credit that was run on March 20th.

I have three collection accounts that the mortgage broker said nothing about.

Today i get an alert that Enhanced Recovery just added a TMobile collection on my Experian report and my FICO8 dropped about 15 pts so can only imagine that my mortgage scores were hit too.....

so now i am going to and AM worried that Enhanced Recovery is going to screw me up......if my credit is run again.

I got a bill directly from TMobile (a statement) so not sure if i went to them directly to offer full pay that ER will delete collection account?

I hope you find some way to resolve this.......i am right there with you on this and am flipping out...

Re: Enhanced Recovery stopping my mortgage

Anonymous — Wed, 08 Apr 2015 23:15:43 GMT

Kimzoo, I am thinking you will be fine. Mine got messed up because when underwriting pulled my credit right before closing items I had disputed or not showing during the original pull. It took about 10 days to get the disputes removed, when that happened it lowered my score and I didn't have any points to lose. The LO ran my situation through a "what if" simulator. The simulator said that if I could get the two collections off of my reports, my score would jump back up to where it needed to be. If you have collections on your report, as long as your credit score is where it needs to be, it doesn't matter it is an automatic approval, with the type of loan I'm going through anyway. I'm still fighting to get enhanced recovery off, they absolutely will not remove it, the attorney couldn't get them to do it. Now my LO is trying to get them removed directly through the credit bureaus. I wish you the best of luck, I'm freaking out too. Keep us posted!

Re: Enhanced Recovery stopping my mortgage

Anonymous — Thu, 09 Apr 2015 04:29:24 GMT

Home or bust...we r living in parallel universe
....lol
I may be in same situation at close of escrow.... Enhanced recovery will show as new collection account and my score dropped...and I too did not have much room for a drop in score.
Enhanced only,at least so far, reported to experian.
I ha be a small open collection also only showing on experian....so will try to do a PFD....and maybe that will be enough to counter enhanced recovery report.
Worth a shot.

Re: Enhanced Recovery stopping my mortgage

Anonymous — Thu, 09 Apr 2015 06:13:30 GMT

Re: Enhanced Recovery stopping my mortgage

Anonymous — Thu, 09 Apr 2015 06:14:08 GMT

I would love to talk to you about the homeowner ship program. I'm currently in it.

Re: Enhanced Recovery stopping my mortgage

Anonymous — Thu, 09 Apr 2015 06:54:23 GMT

Your score will recover from this without taking the Collections off . But It takes time that you don't have , probably a couple months . Your wasting your time with ERC they go by the book nowadays . If you can pay sprint and get a receipt from them you will have a good chance at getting ERC deleted . First offer them full payment in exchange of deletion and see what they say . If they say no speak to someone from the EO or a supervisor .

Re: Enhanced Recovery stopping my mortgage

DueDilligence — Thu, 09 Apr 2015 06:58:22 GMT

@Anonymous wrote:
I've been doing some more research, apparently if I pay the OC, (original creditor), by law, they will have to remove it. Sprint will not talk to me because I forgot my pin number, and the security questions were something my ex-husband set up. It is going to be a pain, but I have to stop at a sprint store tomorrow, show an ID to get a new pin. I'm not even with Sprint anymore, I have been with Verizon for 3 years. I'm not sure if anyone knows anything about this method, but I just read a very lengthy article and all of the laws from FRCA.

Is this true?????? How many people can tell me if this is true??????