PFD-CA deleted without payment?

[Anonymous]

Please be kind. Although I have been using these boards for information the past few years, I have never felt the need to post. So here it goes!

My husband and I relocated out of state two years ago. We pulled a credit report last year to become prepared for a home purchase. I disputed what was SOL or incorrect and got two collections deleted. The rest, which I knew were wrong or SOL stayed as "verified". Nice work Equi/Trans/Exp!

Fast forward to Feb 08. We spoke with a mortgage broker at Wells Fargo, she pulled our report (score of 523) and said, "We can get you an FHA at 6.25%!". I work as a Realtor and thought she was pulling my leg. She asked about the credit report and I explained everything to her. She stated she would have a company (RELS) work on it and get those errors corrected and removed. I asked if I should DV them myself first as not to tip off the collections I was hunting for a mortgage and quite possibly have a better chance at having it corrected. She explained she would handle everything and it should not be a problem.

Two days before closing...."Everything came back verified. You will have to pay (approx. $5000) at closing." Needless to say I flipped a little and asked what was and how it was verified. She had no response other than "It was verified. You want the house don't you?" I immediately went to her superior. It wasn't pleasant...for her anyway.

So we bit the bullet and had everything rolled into the closing costs with the Title Company holding in escrow the monies due to these collection agencies. They printed checks for us to mail out to everyone after closing.

After doing more research on this board I decided to PFD them all modifying a letter found on this board. I sent everything CMRRR about two weeks after closing stating that I would request total and complete verification within 15 days after receipt if I do not hear back from them.

I waited.....and I waited and now still nothing in the way of mail from any of them. The checks are only valid for 90 days from the date of issue and I have a month to get this settled. So today I went and pulled our free yearly reports from all 3 agencies and Porfolio Recovery, Citi Corp, and Sears vanished from all three. The only things that remained are 3 medical collections!

Now I am going to be contacting the title company and wells to show the updated reports to see if we can have our monies returned to us for the accounts that were deleted, send out the others immediately CMRRR with a good faith letter pushing the point home for deleting them, all the while keeping my fingers crossed.

My question is to anyone that has experienced anything like this. Sending a PFD with the explicit request for DV if not agreed upon and had them just delete without a letter or anything. What are the chances they will show up again sometime in the future? If they do, how would I handle that seeing as they are gone now and I did not dispute them through the CRA? If they do reappear, can I send copies of the PFD letters and the reports showing them before and after deletion? I just want to be prepared if they do pop back up. Of course if they did, the first thing I would do is DV the CA immediately.

Thanks for your patience in reading this.

Message Edited by leadman on 04-25-2008 12:58 PM

[llecs]

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leadman wrote:
My question is to anyone that has experienced anything like this. Sending a PFD with the explicit request for DV if not agreed upon and had them just delete without a letter or anything. What are the chances they will show up again sometime in the future? If they do, how would I handle that seeing as they are gone now and I did not dispute them through the CRA? If they do reappear, can I send copies of the PFD letters and the reports showing them before and after deletion? I just want to be prepared if they do pop back up. Of course if they did, the first thing I would do is DV the CA immediately.

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Welcome to the forums!

As you learned, lenders are good at lending but they don't know much about credit repair (unless you are a lender on these forums).

First, above all, I would pull all three of your reports through MyFICO. Sounds like you deleted some OCs and that could have killed your score if you had an established history with them. If these were newer accounts in relation to your other open accounts, then I wouldn't worry much. Removing an old CC account with a bunch of lates can actually hurt your score.

Unless I read wrong, and may have, you can only send a DV to collection agencies.

Ideally, you want to separate the DV and the PFD. I know why you combined them: due to timing. But I believe you should resend the DV to the CAs still reporting. It is possible they each deleted not becuase of your letter, but because they either didn't want to mess with answering it or they received payment and out of a kind gesture they deleted.

Sending copies of your modified PFD probably won't help if it gets reinserted. By law though the CRA but send you a letter stating that has happened. I think the likelyhood of reinsertion is low.

[Anonymous]

leadman-

I don't have any advice to offer, but I sure am sorry. Sounds like this agent had an under the table agreement w/ the repair company & that is shady of her. I hope it works out!

Please do post again with the final results. I'm sure you'll get lots of good advice from the board in the next couple hours.

[Anonymous]

A CA may take your PFD as a DV causing them to remove-

If they remove it- NOT from a dispute- they can re-insert

IF you know these debt were yours AND are valid

I would be very careful- might just want to send the check w/ PFD -

with an agreement not to report-

[Anonymous]

I apologize. I am thinking maybe I wasn't being clear enough in the original post.

The home purchase did go through the end of Feb 08. They close fast down here as opposed to up north where it can take 2 or more months. The shock of having to pay to Collections Agencies (not the Original Creditors) has wore off. The mortgage broker/salesperson, once everything was explained to her regional manager, has since moved on. Your reputation is everything in the Real Estate world.

What I was trying to say was that maybe our story is a bit of a success story of sorts. Of course this depends on the outcome.

Here is a breakdown of the events (for anyone who cares to read), followed by a question on my approach, and the potential result.

Contacted mortgage broker through relocation reference from husbands job.

Was offered an FHA @ 6.25% with a credit score of 523, 20% down, 3% seller assist.

Found and made offer on home at 20k less than list.

Offer accepted with 20% down and 3% seller assist.

Contacted lender to ask how to proceed on collections accounts showing. She said she would dispute them all on our behalf.

Two days before closing. Still no commitment letter. Debts were verified through RELS. They called and said "Hey is this theirs?" answer "Yup sure is!" Verified. LOL! Must pay approximately 5k at closing.

I contacted the Regional Manager for Wells Fargo who I knew was new to the area and looking to build her business/branches. Explained the situation and she took over our loan processing. Still have to pay the collections at closing but reworked the loan for 10% down with the 3% seller assist in order to do so.

Feb 29th (gotta love leap year) closed on the home. Title company printed checks from their escrow account for each collection company. Here is the break down.

NCO Financial SOL Hospital Bill
National Recovery Hospital Collection
Powell, Rogers and Speaks No idea who the OC is
Account Recovery Hospital Collection
Portfolio Sears SOL since 1995
CBLAV Hospital Collection
Capital Management SOL Capital One Card

Signed the papers, took the checks and the HUD sheet. Got the keys and moved in.

I researched this forum. Decided if I was going to be forced to pay then I would send out PFD letters to everyone. I modified a PFD letter from this forum and sent all out CMRRR.

Got little green cards back between 3-8 and 3-15. Never heard another word. No letters. No calls. Nothing.

Escrow checks good for only 90 days. I have to distribute them within enough time.

Today I pulled all three credit reports from Trans, Exp, and Equifax. Here is what is showing.

CBALV
National Recovery
NCO
Powell Rogers and Speaks
Accounts Recovery

There is no more Portfolio Recovery or Capital Management. I'm sorry if I got them wrong in the first post but I have a gazillion papers lying around me. Please forgive.

Now, I have these checks. And I have checks totaling $2800.00+ for Portfolio and Capital. Since I PFD'd them, they removed the items from all three reports without responding or receiving payment.

My hope is that with this proof and the way the original mortgage broker/salesperson mishandled everything, I can go back to the regional manager and request with this proof that we need not pay Portfolio and Capital and that the monies can be returned to us from the title company escrow. The other checks will go out asap with a "pretty please, here is your money" delete letter...fingers crossed.

We are in the home. Made our first mortgage payment already. What I want to know is those two collections companies, Portfolio and Capital, having removed the collections from all three reports, can they pop them back on at any time? They are both SOL and I have copies of our credit reports from back in 2000 through to today. If they pop them back on, wouldn't they have to show the date and that would show SOL? Can we not dispute them with the Credit Reporting Agencies sending copies of everything we have to make them once again go away? Or would they even replace them in the first place?

I will definitely let you all know how it goes with trying to recover our escrow monies from the title company. I personally do not see, under the circumstances how Wells Fargo can force us to pay something that no longer appears on our credit reports. Especially once I provide them with copies of the letters sent, the little green cards, and updated credit reports. But we will have to wait and see.

Thanks a bunch for listening. I hope I made better sense this time around!

BTW, the Portfolio Recovery account is for a Sears charge card we closed in 1995 and paid through CCCS. We paid CCCS (Consumer Credit Counseling Service, a government run agency to keep people out of bankruptcy) who paid Sears who never told Portfolio they were paid. Unfortunately the information on this is long since gone and Portfolio keeps changing the date on the accounts activity. Even going so far as to report we paid them $100 a year ago! The Capital Management is an SOL Capital One credit card closed in 2000. The original balance and credit limit was $500 but somehow was still showing as revolving and now at over 2k owed! How can something be a revolving charge card through a collections agency? What a bunch of crooks!