Credit score drop before close

[Anonymous]

Before coming here I exclusively used credit karma to find out what my score was. It said it was 647. Our lender said it was 678 so I guessed the FICO was higher.

A new paid collection just popped up and dropped CK to 599.

I signed up to received FICO to see where those are and only TU is reporting the new collection and it dropped to 607. The other two don’t show the new collection(yet?) but those are at 637.

I’m wondering now what score the lender is using and how dramatically will it drop? I’m trying to get rid of this new collection (showed up paid) with no luck at all. We are under contract set to close July 1.

We are going conventional. I’m sure they’ll do another check so I’m hoping worst case we just have to go FHA? Does that seem realistic. We are trying not to lose this home.

I told our lender everything but haven’t heard back yet.

[Anonymous]

Amazing how even a paid collection will pop-up close to mortgage closing.  An unpaid collector could see this as a chance to get some money from you but why do paid collectors do this? This is so unfair to the consumer.  Had they placed it on your reports earlier you would have had time to deal with it.  Is a medical collection? Medical collections can be cleaned up real fast.

Have you opted-out and removed any old addresses if any?

[Anonymous]

It’s Verizon. They won’t budge on removal at all. 

[JVille]

Here is the Verizon Executive Contacts... don’t start at the CEO, but start with the Primary contact first and Email the bare facts to include you acct # and briefly and politely ask for this to be removed. If you don’t hear anything (or you don’t like his answer) in a few days go to the next contact. Be brief, be factual and ask for help.
Don’t start at the top because once the CEO says no it’s over, you have 3 opportunities for someone to make an exception. Be sure and remind them that as soon as you knew about the past due acct you paid it immediately and never knew it was ever sent to Collection. Why would they send a PAID acct to Collection.
Good Luck!

http://www.elliott.org/company-contacts/verizon-wireless/

[Anonymous]

Since the collection is paid and Verizon is not having mercy, look at all other accounts in your credit report.  Is there anything you can do to the other accounts to gain points? That could raise your score back up. The new collection would still be there but it is paid.  Just an idea.  I feel your pain.

[Anonymous]

I’ve started emailing thank you! Won’t hurt to try!

I’m not sure home much the credit has dropped really. The Fico scores I got were 637 and with the collection one was 607.

However I got the lender report and there’s was 703, 678 and 673. That’s before the collection hitting the TU one.

There’s a CC we can pay down that im sure will give a boost. It’s a 4K limit with a $3400 balance. A couple thousand on that and I’m sure it’ll help. We wanted to save the cash as we will need it for closing but would do this if it’ll help.

[homeloanexpert]

We pull a refresh prior to funding and not a new pull. Meaning we don't get scores. The only reason the lender would pull a new report would be if the report is over 90 days old. For us, as long as your credit report is less than 120 days we are good. A refresh for us is primarily to see if the borrower has incurred any new debt. If a new collection pops up and not like thousands, we'll let it go. But it's at the decretion of the Lender's Underwriter. If you went to a Broker, then that could be a reason that the Lender will want to use the new credit pull. I would hate to see you have to FHA because of a single collection. If you need any additional information, please PM me.

Best of luck to you!