True Stories

 

10/21/09 - Experian 600 score.  Open collection account $177 with an account type of OPEN instead of COLL.  Usually paying off a third party collection agency account will NOT raise the score.  However, often, the repositories have the wrong account type.  It should have been COLL.  But because it was coded as OPEN, we decided to take a shot.  The consumer paid it off, we submitted it for rescoring.  The score went up 29 points!!!!!

**** Eleventh Hour Closing Crisis!  FHA Mortgage.  Our client needed a landlord verification, NOW - within 15 minutes.  All we had was a property address in Port Charlotte, FL.  No landlord name, no landlord telephone number.  I went to the county appraiser's web site and got the name and address of the owner of the property.  It was First Church of something or another.  After checking directory assistance, there was no phone listing for that organization.  We went to another web site and did a reverse address search and found a listing for another type of organization with a religious name.  We called that number and it was the correct party.  We were able to do the landlord verification within 15 minutes.  Deal Saved!

**** Client pulled a tri-merged infile credit report.  Borrower is applying for a $750,000 refi.  There is a 1995 charge-off of $36,000 with a well-known national bank.  This charge-off was reported by only one of the repositories.  After 12 phone calls, we were finally able to reach someone who found information on the account.  They would not discuss the account over the phone, would not accept a fax request, insisting that we mail our request.  We finally received a reply and the date of last payment was 10/15/91, well beyond the statues of limitations.  As we've all seen, outdated items consistently appear on credit reports due to auto-data tape errors wherein they are looking at the date of charge-off or some other incorrect date, rather than the date of last activity.  Since by this time, I had established some sort of rapport with the recovery department representative, I faxed her a letter advising that the account was no longer reportable pursuant to section 605 of the Fair Credit Reporting Act.  I asked her to call me just to confirm that she acknowledged that I was removing this item from the credit report.  She did call and did concur that the account was no longer reportable.  The account was removed.  Loan closed! 

 

**** Another Eleventh Hour Closing CRISIS!  The underwriter wanted verification that the applicant was NOT a first-time home buyer.  The applicant had a paid mortgage with GMAC Mortgage in 1998.  The paid account was NOT showing on the credit report.  After calling GMAC Mortgage, they could not locate any paid account, stating that it was probably purged off their system.    The applicant could not locate any of their paid documents.  We went to the county clerk's web site, did a name search and found the original mortgage as well as the satisfaction.  We printed them out, faxed to our client and another deal was saved. 

**** A file we've been working on for a month.  $2,000,000 Refi.  Satisfied tax liens, unsatisfied judgment.  There was also a foreclosure trade line for the same public record unsatisfied judgment item.  We checked the judgment and found it was satisfied.  The judgment was filed 5/97 and satisifed 12/98.  However, the trade line for the same bank showed a date reported of 11/00 and a date of last activity of 6/99.  The underwriter would not approve the loan due to the recent foreclosure dates.  We had to obtain the correct dates of the foreclosure.  Further digging at the county clerk's office showed that a Lis Penden was filed on 6/96.  We also obtained the name and telephone number of the judgment attorney from the public record item.  After verification of the dates, we are able to update the tradeline with the accurate dates.  LOAN APPROVED (Finally!)