Best Way to Remove "Account In Dispute" for Mortgage Loan

[ShanetheMortgageMan]

If you had a high debt to income ratio, or couldn't provide rental history verification, or don't have enough re-established credit, then manual underwriting could be an issue.

[bbb3601]

Thank you for helping all of us layman.

[Anonymous]

If the DTI is under 50% and there is rental history verification and a long history of credit, are there any negatives to manual underwriting? 

[Anonymous]

I am going thru the same situation right now.  When you say your score went up...do you mean after getting the dispute flags off the accounts? I spoke to a Quicken loans agent and I am under the impression that removing disputes your score will raise.?.?

[Walt_K]

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@Anonymous wrote:

I am going thru the same situation right now.  When you say your score went up...do you mean after getting the dispute flags off the accounts? I spoke to a Quicken loans agent and I am under the impression that removing disputes your score will raise.?.?

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Not sure which person you are replying to.  When you reply, in the upper right there is a quote button.  If you use that, it will be easier to track.

As far as how removing the dispute will affect your score, that depends.  If it is an inactive disptue, i.e., there is just a dispute comment in the remarks section, it will not affect your score at all to have it removed. 

If it is an active dispute, the account is removed from FICO scoring while the dispute is pending.  Once the dispute is resolved, FICO scores the account again.  Whether that increases or decreases your score depends on whether the account is having an overall positive or negative effect on your score.  It can't be answered in a vaccuum.  For example, you could have an account with 30 day late payments that you disptued thinking it was a negative account, but depending on the age of the late, and the overall age of the account, it might be helping you more than hurting you.  Removing it from FICO scoring would cause your score to go down, then when the dispute is resolved, it would go up regardless of whether the 30 day late was removed or not.  However, if you dispute an account with a major derogatory, especially a recent one, you are likely to see an increase with the dispute, and then see a decrease once the dispute is resolved, if the derogatory is not removed.  So it really depends on how the dispute is resolved, and whether the tradeline was positive or negative on the whole.

[Anonymous]

FAKO scores must be off quite a bit from FICO scores. I disputed a five year old paid collection on my credit report some time back and while my FICOS stayed the same, equifax fako plummeted 50 points and transunion fako jumped 30. When the dispute was settled-verified, equifax went back up 50, transunion fell 30 and the walmart tu fico and equifax fico did not waver.

[Anonymous]

Hi all,

I have been doing a lot of recent research on this topic of late, as it directly affects me.

I have been approved for a VA loan, with one condition of approval, and that is that all the "Consumer disputes the information in this account" notation in the remarks section, be redacted/removed.

I compiled lists of the applicable accounts for each agency (note they do vary from agency to agency as to which ones show up) and made phone calls this a.m.

I phoned Experian first, and they were very nice and non-plused by my request.  The agent advised me they would be removed within 72 hours and they would notice me via email.  Exactly 4 hours later today, I received the email which stated the affected reports had been updated and the statement removed!!  Wow!

Next, I phoned TU and they also were non-plused (no questions or arguments etc.) and they advised me that it would take up to 30 days, but the agent stated to me that it would most likely be much sooner than that and they would be removed.

Feeling really good, I then phoned EQ and basically have hit the proverbial brick-wall!!  First, I asked to be transferred to a USA representative, as soon as I detected that I was most likely in India.  Then after getting the US agent and explaining my situation, I immediately got the "sorry, we are unable to accommodate that type of transaction, you must contact the creditor."  I tried to explain that I just had this done at TU and EX, but to no avail.  I then asked to speak to a supervisor (very politely) and was put on hold for over 10 to 12 mins.  When the supervisor came on, she just restated what the agent had stated and she told me they had no process for my request, and that it must go through the creditor.  I then asked, what if I send you a certified mail letter with a list of the 6 accounts and the account numbers?  She said that would not work and would not be accepted just as the phone call would not. Even sharing with the supervisor that I was a disabled individual, would not sway her.

I waited an hour and called back, this time allowing the agent in India to help me; wherein, she immediately had the same response (as the EQ US agents), that I would have to deal directly with the creditor.  She did offer however, that I could submit it via E-Oscar the automated dispute system and see if that might work.  Having run out of obvious options, I agreed and she said I would hear back within 30 days.  All of my accounts with these dispute notes are old collections, which are due to drop off (7 years) in about 12 months; left over from my divorce six years ago.

I am feeling so very frustrated right now, with an approved VA loan, mid FICO score of 718, and wanting to relocate as soon as my daughter is out of school at the end of the month and have this type of issue to hit us in the face.  I understand what an active dispute is, and how it affects the score; however, it is beyond me as to why they have lumped any 'dispute' language, even one that is just the consumer stating (in remarks) he/she does not believe the data is correct, and which has no impact on FICO scores, can cause a mortgage loan to be derailed....especially for a VA loan.

I am hopeful that there is some remote chance that this electronic dispute will do the trick?  Does anyone else here have any new info on getting by EQ on this??  I am sure that there are many, many folks across the country who are facing this debacle, and it must be having a tremendous impact on not only buyers, but also mortgage companies with lost or long delayed loans?

Again, anyone have and answer to getting through this, in an easy manner as it was today with TU and EX? 

[Anonymous]

Equifax When you call let them know that you would like to speak with someone that can help you remove the dispute remarks that are on your credit report. They will transfer you to the dispute department. This part is kind of tricky. The first time I called they were not able to help me. The second time I called the representative took them off without any type of push back. With Equifax you have to speak to someone that is not an outsource representative. I find the outsource reps to be the least helpful. If you have an open investigation it will still continue but the remarks will be removed once the investigation is over. You will have to wait until the investigation is over before your credit report can be pulled again. Now if that does not work call 404-885-8300 and asked to be transferred to the executive customer service department. They are able to remove the dispute remarks and stop an investigation if one is in progress. If when transferred and a live agent does not answer leave a message and they will return your call. Explain you situation and provide the account information that has the disputes remarks and include your contact information and social security number. They are really good on return the call within 24 hours. If the person from that department does not assist with getting the remarks removed contact one of the two ladies from below. Mod Cut was the one who helped me out but from searching online it seems like Mod Cut is very helpful also. Executive customer service department Mod Cut Office of Executive Consumer Services EQUIFAX (Region 043) 1550 Peachtree Street, MD-H13 Atlanta, GA 30309

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Sorry but personal information is not allowed to be posted - MarineVietVet, myFICO moderator

[Anonymous]

Thanks so much for the great info!!

I sent you a PM, but maybe you have not seen it?

I will make contact with EQ again on Monday.

This is such a simple issue, I hope it will be resolved soon.

Thanks again!!!

[JonRun]

"The total outstanding balance of all disputed credit accounts or collections are less than $1,000, and
Disputed credit accounts or collections are aged two years from date of last activity as indicated on the most recent credit report."


I have a charge off I disputed with Wells Fargo. In the date of last activity, it says "N/A". The date of first delinquency shows 08/2010. Does this mean I will have to wait until after 08/12 to get an FHA loan if I don't have the dispute comment removed? Or should I just have it removed anyway?