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Mortgage Concerns: Looking Ahead


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I didn't want to threadjack, but after reading over this post, I have a couple concerns.

Within the next 2 years or so I plan on applying for a mortgage. But currently, I have 2 or 3 "negative" accounts I plan on validating very soon. But from what was contained in that post, when applying for a mortgage, a lot of previous collectors come crawly again.

Does DV work as a long-term solution or would this be a short-term fix when it comes to the reports they pull for home loans?

Lastly, would "opting out" do anything? Honestly, I still can't say I'm very sure what exactly that means. :oops:

Thanks for any help!

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The best paper trail in the world will not sidestep a persnickety underwriter. You're in their power and you have little recourse against them at that point.

The only certainty that you can ever have that a debt will not affect your mortgage process is to either beat them in court or have a settlement agreement (or letter from them stating a payoff amount) and proof of payment.

Keep in mind though that there are programs that allow for a certain amount of unpaid collections out there. But your goal should be to get into a mortgage program that requires you to be completely pristine in terms of not having old, bad debts hanging around, and to in fact be completely pristine so that you qualify for it without potentially committing mortgage fraud by omitting to to put down on the app some old debt that isn't showing up on your reports anymore. Programs that let you not pay some old debt are going to more than make up for that old debt in higher interest or discount points or fees or what-have-you.

Opting out keeps the CRAs from selling your name and info to people who you don't already have a business relationship with. If you do it the preapproval offers will stop, except for those that come from affilliates of those you already have accounts with (assuming you haven't opted out with them as well).

The sales that go on are what makes the phone start rinigng like crazy whenever it appears you're in the market for a mortgage.

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Ah...now this is making some sense. I guess ultimately, for my situation anyway, I don't want to so much "fix my credit" as much as fix it for a mortgage application in a couple of years.

So if I'm understanding, if I DV a collection for about $500, even if I can have it successfully removed, when it comes time for the mortgage, it may resurface. Is that correct or is it gone forever if I can DV it?

I was kind of thinking I could DV that $500 account and another for $40 that's apparently several years old. Then, with having them removed, choose to "opt out" and hope my information never surfaces when I apply for a mortgage. But just as you mentioned, I don't want to commit fraud by omitting something and have that put a whole wrench in receiving a good rate/approval.


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If they don't validate, they can't collect.

If you have a paper trail on your validation efforts, and can document that they did not validate and then dropped off your reports, you've got a good argument that you didn't owe that amount to that party and that you didn't need to put anything about it on your mortgage app.

If they pop up again, you may or may not be able to slide past the underwriter. You may or may not have a good FDCPA suit against the purported creditor for any damages you suffer as a result of difficulties getting a mortgage.

As with anything else, YMMV.

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Great! That definitely makes sense. It would seem absurd that you could DV something and have it removed only to have it reappear later at what would be a very inconvenient time - to use an understatement. :wink:

So gameplan:

1. DV

2. OptOut

3. Buy me a house! :mrgreen:

Thanks flacorps!

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