HELP I'm at my wits end!!!

Ok where to start? Ive done stupid things with my credit in the past. Have tried to get it straight. in the past 36 mos I have settled 3 different accts that were mine. Yes they were in collections one went to court I was garnished. payment for that was completed in Dec 05. last 2 accts that were in collections were settled before they went to court in march 07.

When I began disputing repeat listings for the same debt I had over 10 charge offs by various creditors showing a grossly inflated dollar amount. I finally had all three CRA's reporting pretty much the exact same thing. I was mainly concerned with the dollar amount of debt and showing a 0 in the revolving area. Only loan I do have atm is an installment car payment opened jan 07. It has never been late and I have always paid more than the minimum.

Heres where the story gets interesting. I started looking for houses in March of 07 Finnaly got a pre aproval letter in Oct 07 from Wells Fargo bank NA. I had been dealing with a loan officer from there since about May/ June 07. Sine I dont make a lot of cash and my girlfriend has a worse situation than I do on the credit front I was looking at houses that need help and ones that I can get within my price range that wont kill me with a huge mortgage payment. Most of these houses are HUD homes. Finaly found one that suited our needs and my budget in Jan 08.

Problem number 1.
My pre-aproval letter expired Dec 31 2007.
Now I couldnt place a bid with the law firm that was handling HUD homes w/o a pre aproval letter. So it takes Wells Fargo until March of 08 to get me a new Pre aproval letter. (Waiting for them was my first mistake but thats another post)
This brings problem number 2.
HUD changes the firm that represents them in the sate of Ohio. I am told via email that the change should only take 2 weeks. (it took 6 weeks) It is now the middle of May and my pre aproval letter is set to expire. my credit is pulled for at least the third time by Wells Fargo. No changes except that my score increases slightly. Got new aproval letter AND an accepted bid from the new firm representing HUD.
Problem number 3
Person at new firm sends my bid and the revisions to a losing bid needless to say 3 weeks go by before I get a packet to sign and return so I can actually get a contract for house. One week later the firm has the property I have an accepted bid on back on the market with reduced list price by 10k. Everything got ironed out with a lot of phone calls. person that had been handling my case number was fired and I finally had a contract with HUD for a house that qualified for insured FHA 203k financing.

Wells Fargo Bank and insurance (as well as HUD) require that heating, plumbing, and electric all be certified prior to closing. Also needed are property survey and estimates for repairs. Thanks to the Ohio EPA and the county I live in I also have to get a soil bore test done so that I can have an accurate estimate for a new septic system. total out of pocket expense at this point not counting the 500 earnest money required by HUD; $2000.
all the while my credit is unchanged. I have until July 30th to close. I'm feeling good about life. New credit report pulled July 10th. Loan officer takes quick look and says "looks good your score went up again".

All of this book has been leading up to this.

Problem number 4.
July 22 loan officer calls and says theres a problem with your credit. The underwriter wants this explained. WAPII has me in collections as of June 08 for a card that was closed in 05. Wells Fargo wont aprove me with this on my report even though it is bogus. It is only listed by one (TransUnion) of the three CRAs. CRA takes 30 days by law to complete an investigation. I have filed for an extension with HUD but it cost me an aditional $225 for 15 days CRA started the investigation on July 24. 30 days puts me at Aug 23 but I only have until Aug 14 with the extension to close. I know that the FCRA states that I can sue if I am denied a loan based on bad info found in my file, but does anyone know of anything else I can try so I dont lose the house or the time and money already put forth????? Or any way to speed up the investigation and get transunion to remove the bad info faster. Loan officer has said that once its removed there wont be a problem.

HELP