does dispute comment lower score?

[Lel]

Let me make sure I understand things correctly:

Do you currently have open and unresolved disputes?  Or have your disputes been fully investigated and are now closed, but the comments remain?

Are you disputing collection accounts or charge-offs?

Lastly, what were your grounds for the disputes?  Was there actually erroneous information on your credit report that needed to be removed?

[Anonymous]

lel  two are resolved disputes and one is unresolved. one was 30 day late that they said was verified ( it was the last payment when i asked for pay-off, i think it cleared in time but apparently not) ive tried to gw..no luck. comment still remains

the other two are co ( one was verified the other is pending)

I dont know how they state the one is verified (it was a lease that i completed as the terms stated and paid a pet deposit. orginally when i got a call from collection agency about it they said it was for damaged carpet and paint, and i told them i paid for pet deposit and reg deposit that they kept for the one spot on carpet and i ask ahead of time if i could paint and they said yes and approved color) so idk what else to do with it, they are saying 3100 and on report it says current payment of 150 which i havent made because i dont owe them 3000. any advice?

[checkach]

I don't know if it lowers your score, but I am trying to get a mortgage now and there was one old account that had been disputed over three years ago, and I have to get the notation that it was disputed off my credit report before I can go to final underwriting.  What is so annoying is that I disputed it and then we resolved it, so the fact that it was disputed should have been removed three years ago.  I didn't know to watch out for that when I was planning on applying for a mortgage.

Another thing - I had disputed an incorrect merchant charge on my current credit card (I had the receipt showing the correct charge so it was resolved pretty fast).  However, it showed up as a dispute (against my credit card???) even though it was in 2008.  I also had to get that resolved before I can move forward with the mortgage.

What a pain, and how irrelevant to everything, especially since the information was no longer accurate!

[Anonymous]

checkach that is frustrating! My LO also told me the same thing and ive read that eq and tu can be difficult to get the comment removed also that you have to call the creditor and ask them to remove it. So i hope my one pending dispute is resolved soon so i can start the process of removing any comments left.

good luck to you! post back if you have any tips to removing the comments quick!

[ShanetheMortgageMan]

radtc, if you disputed some accounts, they came back verified, the disputes were closed, but the "disputed by consumer" comment still is attached to your accounts, then your loan officers credit vendor may be able to remove those comments from the report.

Disputed trade lines become a problem with conforming loan programs when there is actually a dispute, because the automated underwriting systems they use can identify accounts that are actually in dispute.  Accounts that only have the comments of "disputed by consumer", but aren't actually in dispute, will not come across as disputed trade lines when the automated underwriting is ran.

FHA is different, a lot of FHA program guidelines say that the loan is to be downgraded to a manual underwrite (more stringent guidelines) if there are disputed accounts on credit.  FHA's automated underwriting system, called FHA TOTAL, does not pick up on disputed trade lines so it is up to the underwriter to visually review the credit report to see if any accounts are in dispute.  The naked eye can't differentiate between an account that is in dispute vs. an account that just has the comments "disputed by consumer" because both types look identical, so in that situation the loan officer should test the credit report by attempting to run automated underwriting on a conforming program (which would then identify any active disputes) or asking their credit vendor to remove the dispute comments (which they often will if it's been disputed by the consumer).

When it's run in automated underwriting and there are active disputes, the following comment will appear in automated underwriting (Desktop Underwriter):

DU identified the following tradeline(s) as disputed by the borrower and did not include the tradeline(s) in the credit risk assessment. The lender must verify the accuracy of the tradeline(s) by determining if it belongs to the borrower and by confirming the accuracy of the payment history. If the tradeline does not belong to the borrower, or the reported payment history is inaccurate, no further action is necessary. If the tradeline does belong to the borrower and the reported payment history is accurate, it must be taken into consideration in the credit risk assessment. To ensure it is considered, the lender may obtain a new credit report with the tradeline no longer reported as disputed and resubmit the loan casefile to DU, or the lender may manually underwrite the loan. If the tradeline is a mortgage that was past due by two or more payments in the last 12 months, or a foreclosure that has been filed within the last 5 years, the loan casefile is ineligible for delivery to Fannie Mae.

Creditor	Account Number	Account Type

If the DU findings do not bring that up, then the account isn’t currently in dispute.

[Anonymous]

thanks shane! I do have an open dispute so i better wait to let her run it though. can a LO tells me anything from my printed Myfico reports of things i need to do or if im likely to be approved or would you suggest me waiting till dispute is done then let her run the AU? my lease is not up until june so Im just trying to get an idea of wear i stand and what I can work on until then (also to find out what my TU04 score and EQ score is so i know if im on target)

my current scores are borderline and ive heard there can be big differences between so it would be nice to see if she could suggest me doing something now instead of waiting till time.

[Anonymous]

sorry i meant EX score and TU 04 or 08 whichever they use

[ShanetheMortgageMan]

Your loan officer can review the myFICO.com reports to let you know if there are glaring issues, but also realize that the comments/reporting information from the credit reports at myFICO.com don't always match the same comments, etc. that appear on a loan officer pulled credit report.  It'd be a good plan to have them review now since you have many months to work on anything.

[Anonymous]

just to clarify, let her pull my credit reports to review or let her run it though the AU to review? Plus she said she could let me know if I would have to pay my collection before or if i could wait till closing. How long is a preapproval good for shane? Ive worked so hard to build my credit so i hope my real scores are high enough!

[ShanetheMortgageMan]

Well to get the most accurate pre-approval your loan officer is going to need to run your credit and automated underwriting, they can't do that with your myFICO.com report.  Pre-approvals are usually good until the credit report expires, which is 90 days.  Of course you can't quit your job, file BK, etc. the day after you get your pre-approval and still expect to get approved if you close within 90 days.  Your scores are getting there, I'd say by the time your lease runs out in June your scores should be where they need to be.