Question about Credit Report Disputes

[designated_knitter]

So I have been reading about how you can't get a mortgage if you have the word DISPUTE in any of your credit reports.  I get that for scoring purposes -- sometimes disputes artificially inflate fico scores (though, frankly, that hasn't been my experience -- if anything, I'm punished when I dispute something).

But my question is this:  After the dispute has been resolved and the CRA has declared what they are going to do, why don't they update to indicate that the dispute has been resolved rather than leaving the "Consumer disputes this"... 

And if I'm getting ready to apply for a mortgage next year, should I be going through my credit reports now and have them remove the "dispute" comment for accounts that were disputed long ago and resolved?  (I still have one active dispute going because GMFinancial or Equifax apparently can't report the correct status to save their lives -- I've disputed it 3 times for 3 different errors but they still have it wrong today and it has been that way for nearly 6 months now)

Thanks in advance.

[RobertEG]

You cant get the dispute comment itself removed.  It is a fact.

What you need is to have the dispute shown as resolved, such as by stating "Meets FCRA requirments""

[DallasLoanGuy]

google my username + dispute comments.

the first result in google should be an article i published(written by shanethemortgageboy)

i have had 100% success rate of clients getting all comments removed.

[DallasLoanGuy]

fyi.... our loan software cannot distinguish the difference between an account in dispute and a comment remaining after a dispute is resolved. that is why it has to be addressed. 

the software will be flagging less and less files moving forward as they updated it.

so, you dont have to get them all removed. just the ones flagged by the software.... technically.

some lenders may interpret this different and want them all removed.... so ymmv

[designated_knitter]

Thanks for the responses...

Is it better to get these comments resolved now (about 11 monhts out from applying for mortgage) or wait until mortgage app and see what the LO/UW says?

To me it seems like it is a catch 22 -- if the statistic is something like 70 percent of folks have inaccurate items on their credit report that need to be disputed but then you can't get approved for a mortgage because you have disputed inaccurate and potentially damaging information, then how does anyone get a mortgage.

For example, I've been having a problem with EQ and GMFinancial.  For awhile, EQ was showing the status of my account as 30 days past due.  I disputed that.  Now they are showing "pays as agreed" (step in the right direction)... but they are not showing any payment activity for all of 2015.  They show the date of my last payment as 12/1/2014... so I have disputed yet again (Logic would presume that if GMFinancial really hadn't received a payment since 12/1/2014, then a), that wouldn't be paid as agreed and b) I wouldn't still be driving said car.  Obviously, this is a problem that needs to be corrected because anyone looking at it would say "well, she hasn't made a car payment in 4 months!  That's a bad thing.  DENIED!"  

However, since I'm disputing it (now for the 3rd time in 4 months), I have the infamous "Customer disputes" flag on the account and presumably it will be there forever even if EQ starts reporting correctly.

When and if EQ actually shows me as paying my car every month, then I would like to get the "dispute" comment removed.  And when I dispute items with EQ -- they certainly aren't making my score jump... if anything, I have found that filing disputes with EQ actually makes my score go down.

Ah well, thank you again -- especially DLG for your response.  I had read your blog posting which is what lead me to ask the question in the first place.  

Cheers.

[DallasLoanGuy]

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@designated_knitter wrote:

Thanks for the responses...

Is it better to get these comments resolved now (about 11 monhts out from applying for mortgage) or wait until mortgage app and see what the LO/UW says? you can wait. or follow the steps in my article a couple of days before you apply

To me it seems like it is a catch 22 -- if the statistic is something like 70 percent of folks have inaccurate items on their credit report that need to be disputed but then you can't get approved for a mortgage because you have disputed inaccurate and potentially damaging information, then how does anyone get a mortgage. if you are disputing, you arent ready for a mortgage. if some old comments remian from old disputes, then you get them removed. pretty plain and simple 

For example, I've been having a problem with EQ and GMFinancial.  For awhile, EQ was showing the status of my account as 30 days past due.  I disputed that.  Now they are showing "pays as agreed" (step in the right direction)... but they are not showing any payment activity for all of 2015.  They show the date of my last payment as 12/1/2014... so I have disputed yet again (Logic would presume that if GMFinancial really hadn't received a payment since 12/1/2014, then a), that wouldn't be paid as agreed and b) I wouldn't still be driving said car.  Obviously, this is a problem that needs to be corrected because anyone looking at it would say "well, she hasn't made a car payment in 4 months!  That's a bad thing.  DENIED!"  wrong. if the uw catche it, then a credit supplement can be ordered. a supplement is just where we use a third party to verify pmt status. you wont be denied. 

However, since I'm disputing it (now for the 3rd time in 4 months), I have the infamous "Customer disputes" flag on the account and presumably it will be there forever even if EQ starts reporting correctly. it can be removed.... although it is a temporary solution using my strategy... they can come back next reporting cycle

When and if EQ actually shows me as paying my car every month, then I would like to get the "dispute" comment removed.  And when I dispute items with EQ -- they certainly aren't making my score jump... if anything, I have found that filing disputes with EQ actually makes my score go down.

Ah well, thank you again -- especially DLG for your response.  I had read your blog posting which is what lead me to ask the question in the first place.  

Cheers.

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