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Urgent Help FAST!!!!!!!!!!!!!!


wesleep
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I have a closing date in two days on my dream home. My loan packet is getting turned down by the underwriter. I filed bankruptcy and it was dischaged 7/1/04. In december 2004 i was sent to collections by a phone company that I had a balance with since 2002 and had forgotten all about because I never heard from them since 2002. If i knew i owed it i would have included it in my bankruptcy. The phone company orginally sold the debt to 2 other collection agency who did not report it to the credit bureau. The third agency reported in december 2004 and thats when I found out. I at once paid it. Now Im being turned down for my mortage because this was a negative against me since filing bankruptcy. I honestly had no idea I owed this money. Also i found that the collection agency does not have my ssn# link to the account. They can only pull me up by my name. Is it anything that I can do at this point or am i screwed. I have ask that they remove the $48 negative item but they refuse. My loan officer is going to call tomorrow to ask them to verify the collection account by ssn# and date of birth. What do I do now. I really need helpppppppppppp.

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If the debt was delinquent since 2002, whether you specifically listed it or not, it was included in the bankruptcy. You should NOT have paid the collection in 2004, but informed them that the debt, incurred prior to your bankruptcy date, was included in bankruptcy and should be reported as such.

Since they've been paid, they really have no reason to delete anything or help you out. Do you have any proof that the debt was from 2002 rather than in the months after the bankruptcy? If not, you may really not have any options.

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Remember, the reporting period for a negative tradeline begins with the Date of First Delinquency (DOFD). If this account went into default in 2002 or perhaps before, there's a chance that the tradeline could be obsolete unless the current CA is reporting incorrectly. Check your dates and see how close you are to the mandatory drop-off date. It's possbile that this thing should be gone already.

Just an observation, but you know this account is past SOL in North Carolina and by N.C. law, the CA cannot even ask you for payment. What's really going on here is that the underwriter/broker is seizing upon an opportunity to jack you up for more money or a higher rate at the closing table. You don't really think they weren't aware of this from day one, do you?

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You've been given good advice above but I think it should be pointed out that this is not likely to be resolved in two days.

Is this one tiny paid collection the only thing holding this up? It seems a bit unbelievable that one paid collection from five years ago would prevent you from obtaining a mortgage if you've had a good credit history since and are putting enough down.

It sounds to me like this lender is absent a few brain cells; I might start shopping for a different lender no matter what you get worked out with this negative tradeline.

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You may be able to get this resolved in two days. Here's what I would do:

1. Fax a copy of the Bankruptcy Court's Discharge to the CA with a letter satating the following:

Your placing this re-aged account and failing to include the notation "Included in Bankruptcy" on my CBR has caused me $100,000 in damages.

2. It also constitutes a Continued Collection Effort after Discharge in violation of the Bankruptcy Court's Permanent Injunction on Discharge.

Kindly provide to me the name and address of the person who re-aged the account so I may file suit against that person as well as your company, and the name of the Coporate Executive who will be reporting to Federal prison to serve the Contempt of Court incarceration for the violation of the Permanent Injunction.

You have 48 hours to remove the offending trade line from my CBR before I take action.

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Is this one tiny paid collection the only thing holding this up? It seems a bit unbelievable that one paid collection from five years ago would prevent you from obtaining a mortgage if you've had a good credit history since and are putting enough down.

As a former loan officer, I can attest to the fact that the a tiny collection can hold up a mortgage. Ihave had amounts as little as $25 stop everything. And it was at this point that I just said, "for Heavens, sake, just pay the thing."

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As a former loan officer, I can attest to the fact that the a tiny collection can hold up a mortgage. Ihave had amounts as little as $25 stop everything. And it was at this point that I just said, "for Heavens, sake, just pay the thing."

I would say that if you are forced to pay a debt that you don't even legally owe, it's an omen that the "dream home" may well turn into an "nightmare". :)

This is not directed at you, K, but I will never understand why a lender seems to turn of their brains (and common sense) over something like this.

1. If a person had all debts discharged by bankruptcy, and

2. The consumer can show that this debt was part of that discharge, and

3. That the negative tradeline is there simply because some scummy creditor/CA is illegally reporting and trying to collect a debt discharged by bankruptcy

I would think that the lender could figure out that this stupid little collection doesn't say anything about the potential borrower's creditworthiness.

No...I don't understand and I'm not sure I want to. :)

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