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Getting ready to purchase a home and dealing with credit card fraud issues.

Is there a letter of explanation that I can provide, or do we need to wait until it has been resolved on the bank's end? I don't want these amounts factored into my DTI. by tori_andrews56 from Prospect, Connecticut. Mar 2nd 2016 Reply


Justin Murray (JustinMurray)
#102 ranked lender in Illinois - 172 contributions

I have a 3rd Party company I can refer you to and assist you in clearing those up immediately or we can have the credit bureau address them if you have documentation. It is a costly process, but fast and my bank will take care of the expense. Feel free to call me office and set up a time to speak. JMurray@WintrustMortgage.com / (312)256-4065

Mar 2nd 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

You will have to wait.. Conforming lending rules are very clear. If you are disputing any accounts on your credit report, then on the credit report, it will show "Item disputed by consumer".. But to obtain financing, the new lender will make you remove the disputes in order to calculate your true credit score.. A cheat that was used in the past was to tell a client to dispute all the bad items on their report. this way, your credit score would ignore the disputed accounts and give you a score of the remaining undisputed items.. This would show a false score.. lenders caught on, and now they require that all credit disputes be removed from the bureau prior to application. If you're disputing because of fraud, then that process is in the hands of the creditor, and they have a process they go through to determine if fraud actually took place.. and no loan officer or credit repair specialist can do anything to make it faster.. You can remove your dispute, and a loan officer or credit repair specialist can re score your report pretty quickly.. usually within a few days, but this means that the account will stay on your credit report regardless of what it's current standing is.. so it's probably best to let the creditors do their due diligence, and hope that it dosent take too long. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Mar 2nd 2016
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Lorne Harvey (lorneharvey)
#81 ranked lender in Washington - 418 contributions

I think the best thing to do is have the investigations done by the creditors that are reporting into your credit, and have them remove those tradelines that are not yours. Hope that does not take too long for you.

Mar 2nd 2016
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

I agree that you'll want to wait until the issues are resolved and reporting correctly on your credit - or, at least you have written confirmation from the creditor of the corrected amount. Typically that will also be required by an underwriter - otherwise there is no way to prove what the account balances should be.

Mar 2nd 2016
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

Realistically, applying for a home loan while dealing with credit issues, AND disputing credit issues, etc, DOES NOT GO TOGETHER. You'll need to have completed and be done with that before bothering to apply in the vast majority of the cases. Sorry. Talk to a local mortgage broker for more information.

Mar 3rd 2016
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Jesse Stroup (jessestroup)
#199 ranked lender in California - 591 contributions

Either way the underwriter will ask about it. In the past I provided the police statment that borrowers files and sent that into the underwriters.

Mar 3rd 2016
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