Disputing Disputed Accounts
Have you reviewed your Credit Report and Credit Scores recently? If not, I urge you to do so. For a number of reasons.
But if you have: I applaud you. Did you find a debt, account, or error there though? After finding it, did you contact a Creditor, a major Credit Bureau, or take action to "dispute" the account?
If you're planning on borrowing money SOON ... I'd advise against disputing an account or error that's appearing on your Credit Report ...
Mortgage Underwriting platforms have changed their stance on "disputed accounts". Disputes used to be seemingly harmless actions. Not so anymore. Underwriting changes have made it possible for disputes to hold up ... or even prevent ... Mortgage Approvals.
A recent Borrower of mine can sadly attest to that fact ...
In my Borrower's case: It took hours and hours of phone calls to explain, detail, document, and sort out a dispute. A dispute originally lodged by the Creditor.
To make this situation even more frustrating, we came to find that the Creditor's action had been taken in error. Nonetheless, it cost my Borrower time, stress, and money to straighten it out. Requests to rush a revised Credit Report come at a cost.
Many times: The best option for a Mortgage Applicant may be to leave the account "as is" ... in error and undisputed. At least temporarily, while trying to gain Mortgage Approval or while in the Mortgage Process.
But what if you've already taken steps to "dispute" an account prior to applying for your financing?
First: Have an in-depth conversation regarding the situation with me or your own Mortgage Lender.
There is no set answer for this predicament. That's important to know and remember. A discussion with your Lender will help you find a solution and take action based on your personal scenario.
Secondly: I may ask that you write the 3 Major Credit Bureaus (Experian, Trans Union, Equifax) AND the Creditor itself, to request they remove the dispute.
Be prepared to take action and follow-up on it. As your Lender I may provide guidance throughout, but I cannot make requests on your behalf. That remains the responsibility of the Account Holder.
Understand: Removal of a dispute may be the best and fastest way to address this issue. It will also address the changes in Underwriting that I mentioned earlier.
In the case of my client, the Creditor later stated that "they guess they needed to review their policies" regarding the placement of disputes on accounts. Hearing that was of little satisfaction to my Borrower. And it didn't reimburse them for their expenditure of time and money.
I will point out, that this issue could have been avoided had my client checked their Credit Report earlier or on a continual basis, as the dispute had lingered there for years.
So Bottomline: Reviewing your Credit Report on a regular (I suggest annually, at minimum) basis is a smart financial move. And it will eliminate issues from arising in the future during your Mortgage Pre-Approval and Processing.
If you're thinking of buying or refinancing a home soon, take action now. Talk to me soon ... and check your Credit Report. Both will make your home purchase or financing go more quickly, easily, and successfully ...
* Are you hoping to Buy or Refinance a home in the Chicagoland, Illinois, Wisconsin area? Contact Me today! I'll put my 37 years of Mortgage experience and expertise hard to work on your behalf.
I can be easily found at:
NMLS #216987 - IL Lic. #031.0006220 - WI Licensed
American Portfolio Mortgage Corp.
Gene Mundt, Mortgage Originator, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, & Portfolio Loans in Chicago and the greater Chicagoland region, including:
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.
Your Referrals are Greatly Appreciated!