My brother went to close on his house and right before he closed they pulled his credit again and the score went from 650 to 450 in 30 days. The only difference is that 2 collections popped up. What should he do to get scores up quickly? VERIZON $135 PARKING TICKETS $1200
Are they valid collections or mistakes? If they are valid then he has to pay them off or the purchase contract will probably expire by the time he disputes everything.
They are valid. You mentioned purchase contract, can you please explain. Also, are you saying that if he pays them off his score will go up? I thought It wouldn't go up because it was a collection.
A purchase contract is a legal contract you sign with the seller when you buy property. It spells out the details of the transaction including an expiration time if the buyer cannot find financing. If he disputes them, the process may take a few months and the seller of the house he is buying will most likely end the deal and try to find another buyer. If he pays them off he can make a deal to have them taken off his reports or at least all collections will be paid and he may still get some kind of mortgage.
To those who want to apply for a mortgage: opt out with the CRA's several months before applying!!! The CRA's sell a list of people who have mortgage inquiries to the CA's who then try to match up the names on the list with names in their files. They know they are almost guaranteed to get paid.
Re: Re: Score Dropped 100 Pts In 30 Days What are you referring to? If he pays them, yep, he will no doubt have another score hit. If he does not, he can't close - you can't close with an open collection on your report. There are other solutions of course - if the account is his, and within the SOL, he can hold off on the mortgage and go for validation. If he really wants that house, quite often the debt can be paid at closing.
Re: Re: Score Dropped 100 Pts In 30 Days I was responding to the topic and the first message. Says the scores went from 650 to 450 in 30 days
Re: Re: Score Dropped 100 Pts In 30 Days This is true. I applied for mortgage and now I have a few CAs rearing their ugly heads. Luckily, I tried to get pre-approved first! - hreid3
Re: Re: Score Dropped 100 Pts In 30 Days This is very interesting, so when you apply for a mortage and it shows up on your CR, that sends a flag to some CAs, telling them what you are doing, then the CAs screw w/ your Credit? How can we avoid this? Thanks Gang
Re: Re: Score Dropped 100 Pts In 30 Days Yes. A week after my first pre-approval I got a letter from a CA asking for money for a debt that is almost as old that it is due to drop off later this year. Coincidence?
Re: Re: Score Dropped 100 Pts In 30 Days "OPT-OUT" STOPS PRM'S...what would that have to do with CA'S???
George, From what I understand of what Breeze is saying, A CA could request PRM type header information ie name and address, and as part of their search criteria use recent mortgage apps. or something like that. Then, match up names and addresses with people they have in their files, and then ding their credit reports. As said, you can't close with open collections, so its almost a "sure thing" for the CAs to get paid if they find a match.
Exactly! Mycroft, that comes from experience. The method by which the CA's obtain the names is a theory, but it is the most likely one, IMO, and people who have opted out, in the right time frame, have not been harrassed by CA's during the mortgage application process. We know for a fact, apply for a mortgage, and if a CA has your name (or even a similar name, perhaps not yours), they will wake up and come after you. Sometimes it is phone calls, but most of the time it is their silent collection method - put it on your credit report and wait for you to be affected by it. We have someone now, reporting a collection from a 1989 debt - showing up on their report because they applied for a mortgage. This is a common occurrence - so common that David Szwak is bringing class actions in just about every state over it , trying to stop the practice. One of our gals apparently lost the house she wanted. (She was posting the questions on both boards.) http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&threadid=47991 I think we all know you can't close on a mortgage with an open collection on your report.
I can't find it now, but I thought all CRA's had a service where they sent names of people applying for credit to CA's and banks to match up with names on their collection lists. I remember reading about it on Trans Union's business customers website and it worked somewhat like the creditor would supply a list to watch to the CRA and they would get a warning when the person applied for credit.
Mycroft, Remeember this from YM? From: evelovespugs (Original Message) Sent: 5/20/2003 7:45 AM In my earlier post I indicated that my husband was phoned by a collection agency in regards to a debt over 9 years old. We are about 40 days away from closing on our house and I am ultra paranoid about everything going right. Anyhow, he has received a letter now and I want to respond with a letter of my own demanding that they stop contacting us and that the debt is too old to collect. Also, I want to be damn sure that they don't try to stick it on his credit report. I've ran our reports twice over the last 6 mos. in preperation for the house purchase and it has not been on any of the three. Anywhere I can go to find such a letter on line? Anybody want to help a girl out with this one? I really want to make sure I do this right. Thanks, Eve Fortunately, Dr. Picantel was on duty and bailed her out!
