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Cherylbelinda

Collections showed up that were removed/homebuying first time

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HELP!

I am in the underwriting process of applying for a mortgage.

Today,I received a notice from my credit union credit monitoring system that two new accounts were added to my credit file.

I subscribe to transunion credit monitoring and they didn't have it showing in it's entirety yet, but something was there.

They are two medical collections accounts.

I went back and looked at old credit reports and found that these accounts had been on my credit report back in 2014 but for some reason they were gone.

Now as I try to become a first time homebuyer here come these walking dead accounts.

Please advise what i can possibly do?

I am crying because i have spent money on appraisal, home inspection, earnest money and I really want this house.

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Can you break down the accounts by OC (original account holder or creditor, and/or whether it was a state, private, or nonprofit hospital), CA (collection agency or debt buyer where the debt currently is), amount, and DoFD (first nonpayment occurrence that led to the charge off)? Having unpaid collections accounts does not always mean that you cannot get a mortgage. Often all you have to do is pay them or start a payment plan.

 

I'm aware that this will not help you, but for others who come across this thread: This is exactly why members of this board so often recommend to do a test/dummy mortgage application 6-12 months before seeking a mortgage. CAs sign up with all of the major CRAs to get alerts when someone applies for a major loan like a mortgage, knowing that they will likely have to pay.

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I think you would get more responses if you posted in the regular credit forum with the default font.

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I'm aware that this will not help you, but for others who come across this thread: This is exactly why members of this board so often recommend to do a test/dummy mortgage application 6-12 months before seeking a mortgage. CAs sign up with all of the major CRAs to get alerts when someone applies for a major loan like a mortgage, knowing that they will likely have to pay.

+1 I try to stress this to everyone - this should be the final step of credit repair. Run a fake mortgage app. For exactly this reason.

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HELP!

I am in the underwriting process of applying for a mortgage.

Today,I received a notice from my credit union credit monitoring system that two new accounts were added to my credit file.

I subscribe to transunion credit monitoring and they didn't have it showing in it's entirety yet, but something was there.

They are two medical collections accounts.

I went back and looked at old credit reports and found that these accounts had been on my credit report back in 2014 but for some reason they were gone.

Now as I try to become a first time homebuyer here come these walking dead accounts.

Please advise what i can possibly do?

I am crying because i have spent money on appraisal, home inspection, earnest money and I really want this house.

I really feel your pain and your post just reminded me of the potential pitfalls that I still have to navigate with my Mortgage application..............I did a test mortgage application last year and nothing came out of the gutter to plague us since then, BUT two days before I submitted my mortgage application a few weeks ago, the last shared collection between my wife and I fell off EQ (3 months early).....this allowed her to get her score up to qualify so it was huge for us. We are finished with underwriting and everything is good to go but the closing isn't for another month (thanks to a screw up on the part of our Realtor and us for not catching it in time) and so I have to nervously wait for another month, hoping that the accounts that were just deleted from EQ don't come back and during my clean up over the last year, there were a couple of my wife's medical accounts that did fall off before I even had a chance to dispute them which could easily come back because they were well within the SOL........all this wouldn't be a problem if it wasn't for the fact that the mortgage company pulls the credit one last time before sending the funds to closing which won't be done I am told until the day before the scheduled closing.

 

As for your case, I think the worst that will happen will be they will make you pay the collections as a condition of approval.

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HELP!

I am in the underwriting process of applying for a mortgage.

Today,I received a notice from my credit union credit monitoring system that two new accounts were added to my credit file.

I subscribe to transunion credit monitoring and they didn't have it showing in it's entirety yet, but something was there.

They are two medical collections accounts.

I went back and looked at old credit reports and found that these accounts had been on my credit report back in 2014 but for some reason they were gone.

Now as I try to become a first time homebuyer here come these walking dead accounts.

Please advise what i can possibly do?

I am crying because i have spent money on appraisal, home inspection, earnest money and I really want this house.

I really feel your pain and your post just reminded me of the potential pitfalls that I still have to navigate with my Mortgage application..............I did a test mortgage application last year and nothing came out of the gutter to plague us since then, BUT two days before I submitted my mortgage application a few weeks ago, the last shared collection between my wife and I fell off EQ (3 months early).....this allowed her to get her score up to qualify so it was huge for us. We are finished with underwriting and everything is good to go but the closing isn't for another month (thanks to a screw up on the part of our Realtor and us for not catching it in time) and so I have to nervously wait for another month, hoping that the accounts that were just deleted from EQ don't come back and during my clean up over the last year, there were a couple of my wife's medical accounts that did fall off before I even had a chance to dispute them which could easily come back because they were well within the SOL........all this wouldn't be a problem if it wasn't for the fact that the mortgage company pulls the credit one last time before sending the funds to closing which won't be done I am told until the day before the scheduled closing.

 

As for your case, I think the worst that will happen will be they will make you pay the collections as a condition of approval.

 

 

Yup...that's called a "QC" pull. They do that in order to "catch" folks who are trying to hurry up and get a mortgage closed before any late payments hit their reports. This is especially true for buyers with so-so credit scores. The bank could realistically close in about 2 weeks, but they drag it out on purpose to allow for any pending lates to post to your credit report. The lenders already know all the games, so don't even try to fool 'em.

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I really feel your pain and your post just reminded me of the potential pitfalls that I still have to navigate with my Mortgage application..............I did a test mortgage application last year and nothing came out of the gutter to plague us since then, BUT two days before I submitted my mortgage application a few weeks ago, the last shared collection between my wife and I fell off EQ (3 months early).....this allowed her to get her score up to qualify so it was huge for us. We are finished with underwriting and everything is good to go but the closing isn't for another month (thanks to a screw up on the part of our Realtor and us for not catching it in time) and so I have to nervously wait for another month, hoping that the accounts that were just deleted from EQ don't come back and during my clean up over the last year, there were a couple of my wife's medical accounts that did fall off before I even had a chance to dispute them which could easily come back because they were well within the SOL........all this wouldn't be a problem if it wasn't for the fact that the mortgage company pulls the credit one last time before sending the funds to closing which won't be done I am told until the day before the scheduled closing.

 

 

As for your case, I think the worst that will happen will be they will make you pay the collections as a condition of approval.

 

 

That would be illegal reinsertion, an FCRA violation. If you were denied a mortgage over that, you'd have actual damages in addition to the $1K per violation statutory damages. If they illegally reinsert, send them a letter demanding they delete within 5 days or you'll be filing suit. If they don't delete, sue them. You could be looking at a six-figure settlement or money damages award.

 

That said, the chances they will actually reinsert are small. I wouldn't lose sleep over it.

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I got my mortgage through NFCU and they only pulled credit once, which was good for 90 days. It's possible that they did a SP, but no second HP.

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I got my mortgage through NFCU and they only pulled credit once, which was good for 90 days. It's possible that they did a SP, but no second HP.

 

I'd say it's almost certain that NFCU pulled a QC the day before closing, but you never know. How was the mortgage process with NFCU, anyway? Would you recommend them?

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I got my mortgage through NFCU and they only pulled credit once, which was good for 90 days. It's possible that they did a SP, but no second HP.

I'd say it's almost certain that NFCU pulled a QC the day before closing, but you never know. How was the mortgage process with NFCU, anyway? Would you recommend them?

While I know many people here are anti-CU for a mortgage, they were very quick and responsive and we closed on time without issues. We also got a closing cost credit and a realter referral credit from them.

 

It's also nice to know that my mortgage won't be transferred.

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I got my mortgage through NFCU and they only pulled credit once, which was good for 90 days. It's possible that they did a SP, but no second HP.

I'd say it's almost certain that NFCU pulled a QC the day before closing, but you never know. How was the mortgage process with NFCU, anyway? Would you recommend them?

While I know many people here are anti-CU for a mortgage, they were very quick and responsive and we closed on time without issues. We also got a closing cost credit and a realter referral credit from them.

 

It's also nice to know that my mortgage won't be transferred.

 

 

Good to know...thanks! :good:

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