“Stop Disputing Accounts When You Owe the Money”

“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

Subscribe to my blog via Email:

 

Enter your email address:

Delivered by FeedBurner

 

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

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

Like me on facebookfollow me on twitterConnect with me on linkedin

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.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 35 commentsJoe Petrowsky • September 25 2015 07:28AM
“Stop Disputing Accounts When You Owe the Money”
share
“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… more
“Get Verification When You Pay Collection Accounts”
share
“Get Verification When You Pay Collection Accounts” Many clients that I obtain a credit report for have collection accounts and often say these accounts are already paid. I will explain that I need evidence so that I can send the information… more
“Location or Price? ”
share
“Location or Price? ” A Realtor referred a prospective client this morning to discuss a mortgage. The specific loan that he wanted to address was a FHA 203 K. The main discussion was that the home they are interested in was not in the best… more
“Love When Things Come Together”
share
“Love When Things Come Together” The challenge was finding the home that my client wanted to purchase and needing to sell her current residence. After speaking to the agent, she told me that property was being listed at a price that will sell… more
“You Just Never Know Where that Next Referral is Going to Come From”
share
“You Just Never Know Where that Next Referral is Going to Come From” I was at a networking event the other day, probably 30 people there. I normally am not shy about going up to someone to introduce myself, even better if there is a group of two… more
“It Doesn’t Always Start off Easy”
share
“It Doesn’t Always Start off Easy” “Hey Joe….. I want to first start off by apologizing to you for my rude behavior yesterday. I wasn’t having a good day, but that was no excuse for me acting like a putz, so I apologize for that. You’re a nice… more
“Attorney tells his client, If You Don’t Close by October it May NOT…
share
“Attorney tells his client, If You Don’t Close by October it May NOT Close this Year” This is not the first time I have heard a client make this kind of statement. These kinds of statements to prospective home buyers are pretty foolish. Scott… more
“Extraordinary Customer Service Costs Nothing Extra but it can Cost…
share
“Extraordinary Customer Service Costs Nothing Extra but it can Cost YOU Future Business” “It was a pleasure speaking to you Joe. Thanks very much for the quick response for the pre-qualification letter and the inspector referral. Thank you. ” … more
“Now that Your Business is Drying Up”
share
“Now that Your Business is Drying Up” That was the heading of an email that I got from a company selling leads. First, I don’t buy leads. Second, would you buy leads from a company that promotes their business in this manner? Here is the… more
“There is Nothing like Repeat Business”
share
“There is Nothing like Repeat Business” “Good morning Joe, It will be close to four years since you handled our refinance. We are now selling our house and looking to buy a condo and would like to work with you again. Thank you very much. ” … more