“Stop Disputing Accounts When You Owe the Money”
I recently met with a client to discuss future plans to purchase a home but it wasn’t going to happen anytime soon. There were 13 Collection accounts that were on the credit report. All showed as disputed and when I asked the client about these obligations, she admitted they were all in fact owed. But she explained that the company that she has been paying to repair her credit said they will be putting disputes on the credit in hopes that the collection agency or the creditor will remove them, but it seldom happens.
When the credit bureaus then contact the collection agency or the creditor asking if the obligation is still valid, what do you think they are going to say? These companies are not stupid and understand what the credit repair companies are doing.
If the obligations are real they need to be settled otherwise the credit bureaus are going to be notified every month or most of the time. Two things need to happen, each collection agency or creditor needs to be contacted and the debt needs to be negotiated. I always recommend to start with the smallest debts first. Second, all the disputes need to be removed from the three credit bureaus.
Sometimes the debts total an amount that would be impossible to handle and bankruptcy may need to be considered. That is not something I usually recommend but it needs to be considered. If someone goes that route and credit is re-established, a Government mortgage can usually be obtained after 24 months, a conventional loan after 48 months.
If there is a foreclosure, deed in lieu of foreclosure or short sale involved it may take longer.
Image courtesy of StuartMiles/freedigitialphotos.net
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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