rebornRN

mortgage broker requesting a letter. What do I do?

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Long description but I need help ASAP!!!

I have spent the past 3 years cleaning my credit after a divorce. I have now been approved for a refinance on my home (which I have to complete due to property settlement) with only one major hold up. I am not sure how to proceed...

I still have one negative account on my CR from Asset Acceptance that is out of SOL. I initially disputed this account in hopes of having it removed. Experian has a TL of "disputed by consumer-verified". Both of the others still read "disputed by consumer." My broker said that in order to complete the loan I will need a letter from AA stating that the account is no longer in dispute or a letter stating that the account should be deleted. I am not sure how to go about this without re-aging the account or admitting to AA that I should be paying on it.

Any help would be greatly appreciated since I am in limbo until I get something back from AA!

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You are between a rock and a hard place.  Asset isn't going to give that letter knowing you need it to refinance unless you pay.  I don't foresee a solution to this besides paying them unless you want to wait until it can no longer report.

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Is this an FHA re-finance? Last fall the rules changed in favor of debtors in your position. Previously a borrower had to make arrangements with creditors, but, with the new rules, they can apply a formula to the alleged debt. Basically they see if you could still pay the mortgage even if the creditor was granted a judgement down the line.

 

I had to switch lenders until I found one that understood the rules.

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Call the credit bureaus and tell them that you do not want to dispute the account anymore and you want the statement removed.

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I know I've been "missing" for a long time, so, if there has been a change, please share with me.

The last I recall was that when a TL is in dispute with a CRA, it is not shown to potential creditors, but, will show on the consumer's copy. Yes, that is during the time the dispute is being processed. And, yes, "verified" would only show on the consumer's copy upon completion. No potential creditor would see this at any time.

What did I miss?

I just looked at your state's SOL. You did not tell us what the debt was. If it is for a CC, the SOL is 3 years. All others are 10 years. You said the SOL has run, you have been working on this for 3 years, so, I'm going to assume the debt is for a CC. The debt may only report for 7 years total, even with A$$et now owning the debt. Your CR will show what date it will fall off. If not there, look at the TL reported by the OC, not A$$et. You should see what the DOFD is, and go from there. If the OC is no longer reporting, then challenge A$$et in that they have reaged the debt. They will have to prove the dates they use are the same as the OC. Some years ago, A$$et convinced a court in Michigan that since they now own the debt, they are now the OC. They did try this in Florida, but, lost. The FDCPA clearly states they are a collector,, not the OC. If the 7 year date is near, either wait it out, or, inform the broker it will take some time to resolve this, and must suspend the refi for a time. And, see if the broker has any ideas. Blame it on A$$et at all times. On occasion, a current CR can be held for 30 days, then, a new one must be pulled. And, if within that 30day window, it will be considered a single pull on your CR, as it is for the same purpose.

You could write a letter to A$$et stating that they do not have any legal recourse, and that by verifying the debt with the CRA's, in some states, can be considered continued collection activity, which is illegal, as defined in FDCPA 807(2)(a), for misrepresenting the legal status of debt. You would also cite Kimber v. Federal Financial. I wrote a piece on this several years ago. If you want, look in the archives for it.

As to reaging the debt, the only way that can be done, is based on your state's statutes, which is either making a payment, or, entering into a new, voluntarily signed agreement/contract.

Lastly, and has worked a few times for others, is to continue disputing it with the CRA's. By this, you challenge the dates, the amounts, anything you can find on the TL. We all know that "not mine" is the first dispute reason, thus you only have what is left. What happens is when the CRA submits your dispute, an employee simply notes a two digit number on the form and, it is sent over. All is done electronically. A$$et then simply looks in their files, finds your info, and responds as verified. They most often do not check the actual account for any items reported in error. Remember, all of this is done by representatives, no legal person, or management.

If I can think of anything else, will let you know. Remember to be creative.

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