Similar to the construction on 3rd Street in downtown Wilmington that was finally completed recently, a credit dispute can elicit groans of discomfort, hassles and irritations. When it comes to successfully applying for a loan, a credit dispute can substantially impede your progress.
A credit dispute does not have to be a roadblock, however. As it is with many of life’s obstacles and problems, there’s usually an alternate route. My experience is that working with an experienced professional or an industry specialist is the easiest and most effective way to quickly identify a practical, time-tested solution.
The mortgage industry is no different. A seasoned professional can help you save countless hours and hassles when it comes to resolving a credit dispute and successfully obtaining a loan to purchase a home.
Considering that consumer dispute comments on a credit report can often result in delays, rejections and more expensive mortgage rates, it’s worthwhile to weigh the advice of an expert and take all of the information that is available into account.
One of the best ways to ensure that a credit dispute will not prevent you from acquiring a loan is to simply attack the problem several months in advance. Successfully resolving a dispute can take time, and it’s definitely preferable to have it done before embarking on the loan application process.
When it comes to disputing a comment on a credit report with a creditor or one of the credit bureaus, it’s always better to have a written record of what transpired. Even if the record is only contained in an email, that is better than a phone call. According to an attorney who specializes in this aspect of law, in regards to the Fair Credit Reporting Act, disputing an erroneous credit report in writing acquires (legal) rights both ways.
It’s critical for people embroiled in this type of argument concerning their credit to use a form of mail that offers proof of delivery. This could include a read receipt on an email or certified mail where the recipient is required to sign for the letter.
Reviving zombie debt is something that I would definitely encourage people to avoid. For those who don’t know, zombie debt is defined as a form of bad debt so old that a person could have forgotten about it. In many cases, the company to which the funds were owed has given up on collecting it. Zombie debt can haunt a consumer’s credit score if a debt collector buys the debt for a low price from the original creditor in an attempt to recover the money.
Making a payment on a zombie debt is something that should be avoided at all costs, especially if the debt is erroneous, because doing so validates the debtor’s claim. Delinquent collections can drop off a credit report after seven years and six months from the date of delinquency, unless a payment is made in that time period. The rule is 10 years for judgments.
Understanding that most lenders require a credit dispute to be resolved before they are willing to move forward, it’s always in the borrower’s best interest to consult with a qualified professional from the mortgage industry before staring the loan application process.
For a confidential consultation about your credit score and ability to obtain the financing you need to purchase a home, give me a call at the number below.
Patrick Stoy (NMLS Numbers 39527 and 39166) has 16 years of mortgage lending experience. Patrick is CEO of Wilmington-based Market Consulting Mortgage, which he started in 2005 with a mission to build lifelong customer relationships by providing real value. To learn more about Marketing Consulting Mortgage, visit www.macmtg.com. Patrick can be reached at [email protected] or (910) 509-7105.