FHA..... Disputed Accounts & Collections. UPDATE!!!

[Startfromwithin]

Hi DallasLoanGuy!

Will requesting that Dispute Statements be removed have an impact on my score? I don't have any ongoing disputes, but I did notice a comment about a completed dispute on my CR.

Thanks!

[llecs]

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@Startfromwithin wrote:

Hi DallasLoanGuy!

Will requesting that Dispute Statements be removed have an impact on my score? I don't have any ongoing disputes, but I did notice a comment about a completed dispute on my CR.

Thanks!

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It can in some situations. It'll only impact an OC account. FICO will ignore certain aspects of an OC account while in dispute like the balance, CL, and payment history. 

[Startfromwithin]

Got it. Thanks for that info llecs.

My Broker just told me that because the entries that have a comment about a dispute all show a Zero Balance, then I don't have to have those comments removed. I ultimately paid the debt months ago.

That is a relief!!

[toi34]

....so what does that all mean?? Please explain in laymans terms. 

[samdubs]

Trying to get those dispute comments removed is running into a roadblock after roadblock. LO stated that I did not have to get the comments removed as one of my conditions to the UW, we will see how that falls out. 

[aussiesareforever]

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@samdubs wrote:

Trying to get those dispute comments removed is running into a roadblock after roadblock. LO stated that I did not have to get the comments removed as one of my conditions to the UW, we will see how that falls out. 

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PM if you need help with an Equifax comments dispute. I talked to a woman named Dorothy and she got it off in 24 hours. My LO told me the same thing about my comments but I went ahead and took it off anyways. I just didn't want anything to stand between qualifying for my loan.

[ShanetheMortgageMan]

Posting this here for the latest information: http://ficoforums.myfico.com/t5/Mortgage-Loans/FHA-changing-collection-account-judgments-amp-dispute...

[sherpoms]

Do you mind sharing who your lender is that said repo's aren't a problem as long as they are 2 years old and not effecting credit scores?! My lender told us to "settle the debt"....also we disputed them, now we have to remove disputes which they say may drop our scores......or pay off repo's! any advice.....we tried to go VA....Thought they didnt care about disputes...seems now they do....so we dont know what to do...our bad debt is 4 and 5 years old!!!

[1awesomedude]

Charge off's - new rules state if charge off's are present must use capacity testing.  Nothing in FHA guidelines addresses the statue of limitations.  In California, a charge off cannot be pursued through the court system after 4 years from last payment, so essentially once you are past the 4 year SOL in Ca, if creditors ask for the money, you tell them no way, and they have no recourse but to maybe try again. 

My question is; if the charge off was more than 4 years ago and outside the Ca SOL laws, does the FHA rules apply when there is not risk of a lien against the property?

[DaBears]

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@1awesomedude wrote:

Charge off's - new rules state if charge off's are present must use capacity testing.  Nothing in FHA guidelines addresses the statue of limitations.  In California, a charge off cannot be pursued through the court system after 4 years from last payment, so essentially once you are past the 4 year SOL in Ca, if creditors ask for the money, you tell them no way, and they have no recourse but to maybe try again. 

My question is; if the charge off was more than 4 years ago and outside the Ca SOL laws, does the FHA rules apply when there is not risk of a lien against the property?

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The money will always be owed, SOL is when a creditor or collection agency loses their chance to sue you legally within a certain time frame, which in California is 4 yrs. Charge Off's are only an internal book keeping measure that the OC ( Original Creditor ) has to do after 180 days per the IRS. At tax time they recoupe some of the money but the debt is still owed from the consumer who defaulted on there obligation.