Starting disputes on my spouse's credit

[sawyersdada]

Greetings,

 

I'm starting the process of disputing items on my spouse's credit report, so that we can get our scores in line for an FHA mortgage during the Spring of 2014. Our scores currently range from my high of 655 to a low of 617. Hers are a high of 624 to a low of 610. We're both pretty close to being in the zone required for FHA. A couple of quick questions regarding my plan of attack:

 

1. There are 3 tax liens against a failed business showing unpaid on her TU report. These were taken care of 3 years ago, and I have sent the proof of satisfaction to TU and asked for correction. Once these are updated, will these have an impact on her score?

2. My first wave of challenges will be to question all and any accounts that are listed as 'Charge Offs', 'Write Offs', or 'Transferred / Sold to another lender'. These are accounts that existed prior to a Ch. 13 BK that was discharged in 02/10. Is this a good approach? 

 

Also, on my report, there was a collection that was challenged twice and both times EQ 'verified' the collection. I never received any documentation from the CA so I sent a certified Validation letter to them a couple of days ago. It was originally reported in 2010, so it's well out of the initial 30 day period. I'm fairly certain the bill in question is ours, but the amount they are reporting is not accurate. It's about 20% higher than what it should be based on my memory of the medical bill. If I don't hear back from the CA, should I re-challenge the collection on the CR with a 'wrong amount' claim? From what I understand, if the amount is not correct, they are obligated to delete the collection. Any thoughts are appreciated.

 

I will be posting plenty throughout this process, but wanted some feedback on the initial effort.

 

Thanks in advance for any feedback.

[TomnTex]

Make sure you look up TFC-392 and read the entire tihing. Then, in your disputes make sure that you reffrence the TFC-392 and not the FDCPA as the TX law has more teeth. Look for my Texas thread under resources.

[sawyersdada]

Does it make a difference that all of the reports on our credit file are when we lived in Washington State? We just moved to Texas within the last couple of months.

[TomnTex]

Some states like Montana you become a resident as soon as you enter the state, Texas, I am not sure of. I would think that normally you have to be a resident 6 months to a year. Google resident requirements for Texas to be sure. Probably wouldn't hurt to go ahead and try to claim the TFC-392 in your favor. If your military you should be good to go to. If it was me, I would go ahead and try it, all they can do is try and deny it at this time. Thing is, your in Texas now, they will have to sue you there, so thats why I think you may be okay.

[admin]

@sawyersdada

 

 

1. There are 3 tax liens against a failed business showing unpaid on her TU report. These were taken care of 3 years ago, and I have sent the proof of satisfaction to TU and asked for correction. Once these are updated, will these have an impact on her score?

2. My first wave of challenges will be to question all and any accounts that are listed as 'Charge Offs', 'Write Offs', or 'Transferred / Sold to another lender'. These are accounts that existed prior to a Ch. 13 BK that was discharged in 02/10. Is this a good approach? 

 

If the liens are satisfied, and this is not reflected on her credit report, updating this info will help.  However, I would dispute as "not mine" first to see if any of them will fall off.  If they don't, you can go ahead and update the info in your next round of disputes.  

 

I would also dispute the Chapter 13 BK on your credit report.  However, since the BK was discharged, it's possible that this will fall off pretty soon, since most Ch13s take at least 3 years to go through.  

 

Pull a copy of your LexisNexis report and see what's on there.  You may be able to dispute with them regarding any negatives.  

[S. Louis Blisko]

The IRS will withdraw a Notice of Federal Tax Lien if the Notice was filed while a bankruptcy automatic stay was in effect. The IRS may withdraw a Notice of Federal Tax Lien if the IRS determines that…

(1) The Notice was filed too soon or not according to IRS procedures.
 

(2) You enter into an installment agreement to satisfy the liability unless the installment agreement provides otherwise.

 

(3) Withdrawal will allow you to pay your taxes more quickly.

 

(4) Withdrawal is in your best interest, as determined by the National Taxpayer Advocate, and the best interest of the government” See - IRS.gov; www.irs.gov/taxtopics/tc201.html

 

Point being. If you show the credit bureaus that the liens are "paid" they will update the report and not them as such leaving them for the duration of whatever would constitute the 7 year period.

 

However ... If you get a "release" or "withdrawal" of lien from the IRS you can get it removed from your credit report easier because only "3) Paid tax liens which, from date of payment, antedate the report by more than seven years" must be removed / deleted.

 

In other words. The FCRA does not allow for Withdrawn or Released Liens to stay on a credit report. Only those paid and unpaid.

 

May the Schwartz Be With You!

[sawyersdada]

Great information, thank you. The liens in question were actually State and not IRS.

[admin]

@sawyersdada - You might want to call the office of the comptroller to see how state tax liens are handled in bankruptcy.  

[sawyersdada]

Got a quick response from TU on the wrong status of the liens. They were updated to 'paid' from 'unsatisfied'. Her TU score jumped 20 points thanks to the update. Next step for these is that I'll wait 60 days, then try to get them removed for good.

[CordusAdmin]

@sawyersdada - that is great and looks to be moving in the right direction!  Any response from Equifax or Experian yet?

[sawyersdada]

@lionhunter - I didn't have to dispute them with Experian or Equifax, they weren't listed there at all. It made that part of the job easy 

[chemteacher]

I got the withdrawal of federal tax lien form 10916 from the IRS and submitted it to the three credit bureaus. I have received one response so far from Experian and they won't take it off. Don't they have to? The statement on my credit report that they mailed back shows it as "paid/released" and they say it will stay on my report for up to seven years from the date it was paid, which was 2010. What recourse do I have to get these taken off? Will it make a big impact on my score? Trying to qualify for mortgage and have these liens and several charge-offs/collections I'm trying to deal with as well. Need help!

[admin]

@chemteacher - It stays on 7 years from the date it is paid.  However, I'm confused by the phrase "withdrawal of tax lien".  Are they saying it shouldn't have been filed at all?

[chemteacher]

It's something the IRS started doing this year, I believe. They are offering a "withdrawal of tax lien" as an incentive to get people to pay (mine was already paid) and in exchange they will file a withdrawal where it was filed (County clerk in my case) and provide you with a copy to file with credit bureaus to have it removed from your credit report. At least that's the way I understood it. I thought they would delete it with that form from the IRS. Experian did not delete it and I think they should have.

[admin]

@chemteacher - sounds to me like that form means the IRS is saying they should have never filed the form.  I would write Experian back and tell them the tax lien is illegal to have on your credit report.  You could also try pinging Lexis Nexis and Choicepoint with the form.  That's where Experian gets its legal data.