A friend just got pre-approved for a home loan. The bank then reversed itself saying that they looked more closely and her credit wasn’t as good. So she dug deeper and found the following:
- DATC, a tech school which she never attended, claimed that she owes them money and is delinquent in paying
- Several places listed on the credit report have long since been paid but never updated the information
She can try to contact all of these companies and request statements certifying that nothing is owed to them…but she has only a week in which to get this info to her bank and the process may take longer.
Advice on how to handle this would be much appreciated. Introductions to people who might be able to assist her would be equally welcome.
This happened to my wife as well. We tried to handle on our own, but spent hours on hold with credit companies and never fixed anything. We ended up hiring a private detective specializing in identity theft and credit issues. The woman that we hired was able to fix everything, but it took longer than a week and we ended up having to pay a higher interest rate because we couldn’t get it fixed in time. Unfortunately, she died a year later from throat cancer so I can’t provide a reference. This is such a common problem, there are many of these types of PIs out there. Search for one in your area and maybe if there aren’t too many issues to be resolved they can fix it quickly. Tell you friend that I’m sorry this happened; it sucks…
It’s too late for this advice but; always check your credit report and get it straighted out before talking to a creditor, i.e. you want to be the one to see the garbage and deal with it before the bank sees it.
You may not get the house you had in mind, because of this.
Call Dave Ramsey?
Regardless how it goes, it seems to take at least a full month to buy a piece of real estate, what the inspections and assessments and the legal junk.
Seventy percent of all credit reports contain at least one error.
Nine million people a year are victims of identity theft. It is the fastest growing crime in America.
Credit inaccuracies, and the failure of the Credit Reporting Agencies to correct them, are the number one complaint received by the Federal Trade Commission.
With all of that money available, creditors are going to use reports from the credit reporting agency that lets them charge the highest rates, that is the one that has the most “dirt” on you. So, the creditors, being the customer, are shopping for the best product- your bad credit- and will patronize the agency that delivers the goods. Therefore, it is in the best interests of the Credit Reporting Agency to NOT investigate, thus keeping your score negative.
Spurring most of this is the rapidly expanding sub prime market, and the lucrative debt purchasing market. Every major bank in the United States has a “sub prime” credit division. It is extremely profitable.
I can tell you from my own experience, and others I have spoken to, that there is another component to this- if you raise a fuss and dispute negative items, positive credit items mysteriously disappear from your credit in what appears to be retaliation.
No matter what-it takes time. Even with what is called a “rapid rescore” this process can take several weeks. You friend is probably going to miss out.
http://street-pharmacy.blogspot.com/2007/11/credit-report-conspiracy.html
If DATC has any assets, a suit for “slander of credit” might be worthwhile. Depending on what the others said, that might work for them, too. (If they never reported that a loan was paid off, but did report that it existed and wasn’t in arrears, it would be hard to win against them.)
Not too much to do now. Not against the Bank. The bank is covering themselves on her apparent credit file. So, if I see this right, she needs to get her credit file, contest the erronious entries, and move forward. Its going to take time. I always pull my file 1x per year myself, as a matter of course. And its free at ftc.gov. Better to get your fico too, but you will have to pay. All of us will generally have bad credit entries in our file that are incorrect.
I am a lawyer, for what its worth. I give bad advice. Maybe.
I am willing to consult with your friend for nothing. She/he is not going to like what I have to tell them, but I will give them my thoughts.
Brian.
credit companies have to remove all negative entries that they can not substantiate with proof. The listing company must provide proof or have the entry dismissed. They have 30 days to comply.
You will have to hound each reporting agency (all 3) and make them comply but otherwise it is a simple process. However, there is no way to get it done quickly.
I am going to guess that she thinks she will own the property once she has paid for it, nope! No one owns property in the U.S. Try not paying the rent/tax and you will meet the true owners and their guns. The best thing she could do is not create debt for herself. Don’t borrow from criminals!
Your post is irrelevant and unhelpful, states facts known to everyone, and is merely a soapbox for your pretense of wisdom.
None of us are richer for reading it.