Does anyne kow if a person is going to be automatically denied mortgage when there is a collection activity on his/her report. I really have a good credit history and wanted to apply for mortgage, but due to this situation i am facing, (discussed in my previous THREAD about clarification of 908b) I am afraid that i will be denied mortgage, or wont be able to lease a car anymore. My score is around 780 right now..... ANy thoughts, experiences? I would have one collection citation to preclude me from getting a leased car or a mortgage... thanks guys P.S. WIll mortgage brokers take into consideration the circumstance of the collection activity, or they dont even listen or care what is going on?
since i highly doubt you will be reported to a CA since they haven't been awarded to your landlord - i don't think you have anything to worry about. if you have excellent credit besides this (should it report) i think a letter of explanation would be all you would need. this is not a GUARANTEE, but strictly my opinion as a mortgage underwriter.
Thanks Jen. I pay my bills on time, and have kept a clean credit history for past 8 years. And I would hate to have a landlord collection account preclude me from obtaining mortgage. As a mortgage underwriter, how are the collections treated in your practice? If someone has a good credit besides that and a steady job, what kind of explanation would you require of an applicant regarding this?
well IF it should show up i would state something like "this collection is currently in dispute. the nature of the collection is due to an accidental fire in my apartment, where liability has not been proven in a court of law". i allow things like that all the time...sometimes there is a collection for disputed car repairs or medical bills that should have been paid by insurance. the key thing in anything you do (including correspondence with the landlord) is always state it as "disputed account". if this is the only thing - i really wouldn't worry about it. remember, you can add a comment on the account when it shows on your credit report.
If you have a 780 with other good lines of credit...3 or more (looking for $2500 or above) for 2 years...that's great. As Jenz said if it does show up they may ask for an explanation...some lenders will make you pay them at close if they are over 1K. GO FOR IT!!!! Ya got nothing to lose but a credit pull!!! GOOD LUCK!!!
I was able to get both a new car and a mortgage this year with a 6 year old medical collection showing on my cr. It was not an issue for the lenders, I was not even asked to provide a letter of explanation.
I have at least 12 positive trade lines with over 70K combined in limists. In fact i have no negatives at all. I also have a steady job with the bank from which i plan to get a mortgage. I would just hate if the bastards placed this 48k collection on my report. In that case I could add a comment to a CR stating that it is disputed and has not been proven in court. So that it could be seen by creditors. If this is the case, then I would rather have a collection rather than provoke them to sue me and get a judgment, because in NC, SOL for written contracts is 3 years, and if they just placed this on a CR, then i would wait till SOL is up and then attack it, once it outside SOL, they would probably remove it.... I also have a leased car, and wanted to lease another one next year once this lease is up, and would hate for them to preclude me to get it.
best to keep it off your credit reports. if a new collection appears those 70K in credit lines could become $0 in a very short period of time handle it before it hands you a nice several years of 500 scores and the subprime to go with it. i just closed, they verify the past 2 years payment history with the place you've been leasing with, and didnt bother to call my work at all just a copy of my paystub. odd. The broker did have to expain why i had so many inquiries "for debt consolidation" that i had to sign. otherwise if you know its gonna appear, make your move now before it does. baddies are a terrible thing to have come back at ya
Credit card companies actually might close my accoutns b/c of a collection? Then I might as well file for BK, if a collection is going to wipe out all my credit lines, how is it any better than having a BK?
You're obsessing on things that may not happen again. I really don't think this is an issue. They are going to have to prove the debt somehow. And the somehow is going to have to be a legal determination of liability. And since their lawyer indicated they don't want to take you to court, don't worry about it. This should be an easy one to fix. I would be practically BEGGING them to sue me. Because I'm going to request a jury trial. And they're going to have to convince a jury that I actually did something to start that fire, and here's the big bad landlord who won't get insurance that is coming after someone just like you, ladies and gentlemen of the jury. I think that's the best thing that can happen. And if they put something on your CR without proper validation, sue them. You really have more power in this than you're letting yourself believe. Don't worry about it until something happens.
Some credit card companies will reduce credit limits or raise APR based on your credit report. But I had a LOT of problems, and only had 2 accounts closed. Most of them lowered limits or raised APR. Again, you can request reconsideration. Start looking at that glass as half full instead of half empty. Or maybe the glass is much bigger than it needs to be.
You are right, I am obsessing about it. I was suggested to use a jury trial, but i cant afford a lawyer. so i would have to do it myself. Plus I have heard, if jury decides in your favor, if the judge notices that the jury have DISREGARDED the law, he might overturn this.... In any case, i would at least would want to have my credit cards and ability to buy a house at some point, even if they prevailed As fas as proper validation goes, Hedwig, i have yet to find somewhere, either on the board, or elsewhere, something that says that a mere itemization of damages along with a fire report they have, wont be sufficient to validate the debt... So the only option I would have is to file a suit against them in an effort to have liability determined, because "VALIDATION" will be their damages + fire report, what else do they need to provide. NOTHING.... So if I want to avoid any negative impact on the CR< i would have to go to COURT.... And if i dispiuted this with CRAs, they would simpy verify this debt with the CA or OC, and the verification would be their damamges and a fire report.... Have not found anywhere anything that says that they would ACTUALLY NEED A JUDGMENT against me.
And what says that the fire report and a bill IS validation? Refuse to pay based on it, and let them take you to court. You won't have to sue them--make them sue you, then enter a counterclaim against them. The time to worry is when you have something definite in your hand. How are they going to get a judgment if they don't take you to court? Only certain government agencies can do that--not a CA. And to get the judgment, when they serve you, you'll answer and counterclaim. The judge will make them prove it. Quit worrying about "what ifs" and take care of "now is." The "what ifs" will likely never happen. You already have indications that they won't really sue.
Well, you are right, they have indicated that they do not intend to sue, but will refer this to a CA. And if i do not pay, then CA might not even sue me and just trash my credit history. How do you deal with that? If a CA does not sue, but rather, places derogatory on a Credit Reports? What claim do i have against them - that they did not validate? basically you saying that if a CA places something on my CR, without having a judgment, I can sue them? based on what? It has already been established that a LL will most likely not sue. The issue is, how do I deal with a CA, who may just vindictively trash my report, and as a validation, just give me the copies of damages, and a fire report..... is there a way to DRAG the CAs to court? I know I am jumping ahead of myself but want to be prepared when i open my mail box, and see a letter from a CA.
They try to collect, you ask for validation. They send something, you say it's not enough. How are they going to make you pay? Only one way--sue. That's why they need a judgment. You're not going to pay without one. And don't worry that you won't get a loan down the road. I had worse problems than that, and just got a card with $20K limit which I filled with balance transfers at 3.99% for life of transfer. And I had multiple late pays, several accounts closed, lots of limit decreases and APR increases.
Hedwig, I understand what you saying. I can keep denying this and keep requesting validation, but they MAY NEVER SUE ME. But RATHER, place this on a credit report, just to screw me up. I am sure if they find out that i have nothing and they can garnishe anything, they WONT SUE ME, but I will be left with BADDIES on my CR... Do you think CAs LEGALLY cant put these things on the CR, without a judgment.... they dont need a judgment to trash my history... I agree with you that they WILL need one to collect something from me, but NOT for spoling my credit... So can i sue them in case where they put this on my CR? without a judgment?
OK...chill...as Hedwig said you are worrying about something that hasn't happened. I don't know the whole story...but, from what I have read IF they send you to a CA...they will give you 30 days to dispute. Wait until the end and DISPUTE!!! They will have to provide the evidence. In the meantime go buy your home at the best rate possible. You may NOT need something from your landlord...12 months canceled checks is preferred. Do you have those? Or find a lender that will not need a Verification of rent (there are plenty). Have you pulled from myfico (or similar?) What addresses does it show? How long were you a tenant at the in question residence? There are many ways to go around it. Just sit back and take a breath...we CAN figure this out! Get in a home NOW!
I was preapproved 3 months back by my bank. They did not ask for rental history. THe issue is, if i buy a house, and then they get a judgment, they might attach a lien to it. So i am gonna have to play it safe... A friend of mine suggested to try to drag this out for 3 years without them suing me, so that SOL will be up for written contracts (lease) I dont know whether SOL applies to damages to a LL? I am in NC, and i did check that SOL for written contracts is 3 years....
Re: Re: Mortgage and Collections THanks Loan Queen. I found out NC is a community state, where real estate belongs to the marriage. So I and my fiance will get it together then, and they cant come after it, if it is owned by a married couple. We just need to get married soon Hedwig. as for jury trial, if I were to request it, is it possible to ask them to award me the attorney fees in case I win, or they do not guarantee this? A lawyer told me it would take somewhere between 30 - 60 hours ( 5 to 10K) to defend me. I dont have that kind of money, and dont know if anyone would take this on a contingency basis.... thats what sux
