Prefer to talk in person? Find a mortgage specialist on Zillow

Credit bureaus hit after pre-approval letter.

Any professional opinions out there to this question and thanks to those that have given their opinions.

I have been awaiting the sales agreement from the seller, now I'm getting close to my pre-approval running out, my loan counselor when asked about an extension informed me they will re-run my credit, the problem is that since obtaining the pre-approval two new collection accounts have hit all three of the bureaus, where do I go from here, my loan counselor has no clue. I'm really getting frustrated. Any suggestions would help. I have contacted the collection agency via fax and regular mail in regards to deletions of the accounts once paid,I am waiting on a response,I am applying for a FHA mortgage due to a 630 score which is no longer a 630 due to the new hit on my credit report.



 

  • June 14 2012 - Sapulpa
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (3)

So you have to get your credit scores up and have collection accounts that are unpaid on your report.  Here's the plan of attack to deal with them.


  1. Pull your credit report, all 3 bureaus.  Not all collections report to every bureau.  You can get a 3 in 1 report through just about any credit monitoring website.
  2. Make a list of all of your collections that you intend to pay.  At the end of your report there is a list of creditors that usually includes phone numbers.
  3. Start to negotiate to pay what you can afford to settle.  The dollar amount doesn't factor into your credit score, so start with the smallest ones.
  4. Offer 50% of what's owed.  A lot of times the collection companies will settle for less.  When they agree to a dollar amount, request a "deletion letter" in exchange for payment.  If they won't give you a deletion letter, still pay the debt.  It will be easier to remove via dispute and it will also stop the re-reporting of the debt.  The re-reporting refreshes the debt to the bureaus which is considered a new derogatory.
  5. On the accounts that you obtained a deletion letter, you must then "rapid rescore" the account.   It will be deleted in a week, which will increase your credit scores.
  6. On the accounts that you weren't able to obtain a deletion letter, we will need to submit our written disputes to have them deleted which takes 30 days to get the results.
  • July 16 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I think my question is,does this kill the deal or is there something that can be done (deletion) to turn my scores around, with this hit I'm wondering where it puts me,from 630 to what, upper 500? or lower 600?  Since the seller is my landlord I'm hoping he gives me some extra time to work on this.
  • June 14 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I guess the obvious question is whether those two new collections are legitimate.  If they are, by paying them you will not remove the history and it will continue to affect your scores.  Also, the delay did not likely add to the problem.  Your lender would have done a "refresh" or "soft pull" just prior to closing and that would have revealed the collections. 
  • June 14 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.