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luke · Joined: 21 Aug 2008 Posts: 10 5.53 Dollars($)

I have a credit question but it relates to mortgage approval.

As I mentioned in a previous post, I do not have any collections on my account except for one account that is listed as "disputed by consumer" and showing a balance of about $1500 is due.

I have disputed this with the credit reporting agencies multiple times and it drops off and then gets re-reported the next month. I have filed multiple disputes/complaints without resolution.

At this rate it looks like a lawsuit is the only thing that will correct my credit.

My question is this...if a mortgage lender is looking at my app and the only negative is listed as "disputed" will this still stop a loan or will it be overlooked as a dispute?

We are looking at buying a new home soon and I know that even if I were to sue, it can take months in my area to get to court and get some sort of resolution.

Should I be concerned about this as far as mortgage is concerned?

adonis · Posted: Tue Aug 26, 2008 10:05 pm Post subject:

Welcome Luke,

I suppose if you have disputed items on your credit report, it doesn't affect your credit score. What matters is whether you've paid off the collections partially or in full. Any lender would like you to pay off the dues. By the way, have you applied for a loan yet? what sort of a loan are you looking for?

I suppose filing a lawsuit against the creditor won't be a wise decision. The best thing is to pay off the collection and move on with loan shopping.

luke · Joined: 21 Aug 2008 Posts: 10 5.53 Dollars($)

Why would I pay them?

Their entry on my credit report is incorrect...I don't owe them anything. They are claiming I do and refuse to correct my report. I've tried everything but they are still claiming I owe them money.

So I'm wondering how badly it would affect my loan chances if its reported as disputed on the report?

Caron · Posted: Thu Aug 28, 2008 5:45 am Post subject: RE: collections on credit report

Hi Luke,

Welcome to our forums.

If the balance shown on the credit report is incorrect, then obviously the creditor has to correct it. But if he doesn't agree, then you can talk to the credit reporting agencies from where you pulled out your report.

If you don't owe the amount, you shouldn't pay the creditor. Who knows he may not delete the item even after you pay off the dues. Finally if the credit reporting agency doesn't have a solution for you, then it''s better to file a lawsuit against the creditor after consultation with an attorney.

Good luck

Posted: Thu Aug 28, 2008 6:15 am Post subject:

luke, the creditor apparently feels justified in reporting this debt. when you dispute an item, the credit reporting agency will note it in dispute, but if the creditor in question can document that you are indeed the debtor, it will continue to show up.

a lawsuit might not do the job - maybe a quick note from your lawyer would persuade them to document precisely why they consider this to be your debt.

luke · Joined: 21 Aug 2008 Posts: 10 5.53 Dollars($)

Thank you for the responses...

Yes, this reporting on my credit report is incorrect. I have disputed it with the collector and the credit reporting agencies. They simply send me a note saying that the listing is "verified" but will not produce any sort of evidence as to what it is or how it was "verified". I know it is incorrect.

I had to go to court with another collection agency last year for a similar thing, and it took nearly a year to get to court and get the matter resolved.

That's why I'm asking this...I need to buy a new home soon, not in a year.

Therefore, if I apply for one and the best I can do is to have it listed as "disputed" on my credit- do you think a lender will overlook that or will it hurt me?

These collection agencies completely flaunt the law and for those of you who've never dealt with them, you're lucky. The credit reporting agencies don't care either as they continue to allow the entry to reappear on my credit.

brian1 · Posted: Thu Aug 28, 2008 5:14 pm Post subject:

Luke
These days everything goes through an automated underwriting system. If you haent applied there is no way to know for sure until you do. If it gets refered instead of approve then you will have to document to an underwriter. How old is this? FHA Loans do not require you to pay collections.
I would apply and see what happens at least then you know for sure where you sit.

I wouldnt pay either. Not until it came down to a lender telling me pay or you cant get the home. Then I might but would still take it to court to get resolved.

Good Luck
Brian

luke · Joined: 21 Aug 2008 Posts: 10 5.53 Dollars($)

Thanks Brian, the "debt" is 5 years old. So even if it were valid it is still beyond the statute of limitations for collections in my state. However, it can stay on my credit for 7 years as you probably know.

brian1 · Posted: Thu Aug 28, 2008 9:10 pm Post subject:

Luke
something that old should not hang up the system
It might but I do not tink so
A good broker will know how to get a loan done with that on there

Good Luck
Brian

Guest

do you know if mortgage lenders verify income 100% of the time?

jameshogg · Posted: Sat Aug 30, 2008 1:12 am Post subject: RE: do lenders verify income?

Hi Becky torres,

It’s not that a borrower's income is always verified. It depends upon the loan program you choose. For instance, if you go for no doc mortgages, the lender won't verify your income, employment, assets and these are not required to be stated on your loan doc. For such loans, only your credit profile and property value is being verified.

There are also the No-income/no asset verification mortgages or the NINA loans which doesn't require documentation regarding your income and assets.

What loan program are you looking for? Are you self-employed or working for an employer?

Thanks

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