How To Remove Credit Disputes
This guide will explain How To Remove Credit Disputes On Your Own Fast In Order To Qualify For Mortgage:
Many of you are reading this article because you are either trying to get pre-approved for a mortgage or are in the mortgage process. The mortgage underwriter has put your loan application in suspense due to having credit disputes.
Gustan Cho Associates want to provide useful resources and information to our viewers. Our goal at GCA Mortgage Group is to make sure that every mortgage borrower goes through their mortgage process as smoothly as possible.
Something like a credit dispute may seem very minor and simple and easy to remove. But that is often not the case. No loan officer should issue a mortgage loan pre-approval to any borrowers with credit disputes on their credit reports.
Non-medical disputes with a total aggregate outstanding unpaid collection account balance of over $1,000 and/or charge off accounts need to be removed prior to the mortgage process. Mortgage processors cannot submit files with outstanding credit disputes to underwriting.
The mortgage underwriter will suspend the file and kick it back to processing. Not checking for credit disputes by both the loan officer and/or mortgage processor is one of the biggest reasons there are delays in the mortgage process and can delay the closing.
Medical disputes, non-medical disputes that are older than two years old, non-medical disputes with zero balances are all exempt from retraction. If the total aggregate outstanding unpaid collection account balance is under $1,000, they are exempt from retraction and do not have to be retracted.
Gustan Cho Associates has written this step-by-step guide on How To Remove Credit Disputes.
Credit Repair Companies Can Do More Damage Than Good For Mortgage Borrowers
Credit repair is not required nor recommended for homebuyers with bad credit.
- Do not spend hundreds or thousands of dollars on credit repair if you are planning on doing so just for the sake of qualifying for a mortgage
- You can qualify for a mortgage with outstanding late payments and charged-off accounts without having to pay them off at Gustan Cho Associates Mortgage Group
- Credit repair can often do more damage for mortgage loan applicants than good
- Whatever a credit repair agency can you, you can do it yourself at no cost with the proper guidance of Gustan Cho Associates
Remember that you can qualify for a home mortgage with bad credit, outstanding collections and charged-off accounts, repossessions, late payments, and other prior derogatory credit, BUT lenders want to see rebuilt and reestablished credit with timely payments in the past 12 months.
Basics On How To Remove Credit Disputes And The Mortgage Process
There are thousands of credit repair companies in this country. There are also countless books and online courses teaching consumers how to repair their credit:
- The most common method with credit repair is by disputing derogatory credit items to the three giant credit bureaus; Experian, Equifax, and TransUnion
- Consumers try to get their derogatory item deleted by writing a letter disputing the validity of the derogatory credit item to either the creditor and/or credit bureaus and/or both
- Once the creditor and/or credit bureaus receive the credit dispute letter, they have 30 days to contact the creditor and request the validity of the consumer’s dispute, and send proof to the credit bureau
- The credit bureau will examine the response of the creditor
- They will check to see if the credit dispute is valid or not
- Then make a decision of whether to either delete the derogatory credit item off the consumer’s credit report
- Or let the derogatory credit item remain on the consumer’s credit report because the creditor has confirmed that the credit has justified their bad credit reporting
- If the creditor does not respond or fails to provide sufficient evidence that the derogatory item is valid, the derogatory credit item will get removed by the credit reporting agency investigating the credit rating dispute
The above steps are how the credit dispute process works. However, there are many instances where the credit bureaus will still leave the verbiage the consumer is disputing on the credit report. This often causes major problems for borrowers applying for a mortgage.
Reasons Consumers Dispute Derogatory Credit Tradelines
Again, millions of consumers will go through credit repair in hopes of removing the derogatory credit items from their credit reports and improve their credit scores.
- Many home buyers who had prior bad credit go through credit repair in hopes of removing their derogatory items off their credit report in hopes of improving their credit scores so they can qualify for a home loan
- Unfortunately, credit disputes will backfire on borrowers
- This is because there are specific mortgage guidelines when it comes to credit disputes and the mortgage process
- You cannot have credit disputes during the mortgage process unless the retraction are exempt
- Medical collections, non-medical collections that are older than two years since the date of last activity, non-medical collections with zero balances are exempt from retraction
- If the total aggregate balance of your collections is less than $1,000, they are exempt from retraction
Do not dispute any derogatory credit tradelines unless you have solid facts on paper prior to and/or during the mortgage process.
HUD Guidelines On Credit Disputes And The Mortgage Process
HUD Guidelines on credit disputes are very specific.
Here are the general FHA Guidelines On Credit Disputes and The Mortgage Process.
- Credit Disputes on medical collection accounts are exempt
- Consumers can have credit disputes on all medical collection accounts
- Outstanding balances do not matter and still qualify for an FHA Loan
- Consumers can qualify for an FHA Loan with credit disputes on non-medical collection accounts as long as the non-medical collection accounts have a zero balance
- Consumers CANNOT qualify for an FHA loan if they have any credit disputes on any charge off accounts
- Consumers cannot qualify for an FHA Loan if they have credit disputes on non-medical collection accounts if the total of the outstanding balances is higher than $1,000
If the total aggregate balance of the outstanding collection accounts is under $1,000, then the credit disputes do not have to be retracted.
Consequences And Risks On How To Remove Credit Disputes
FHA does not require you to pay off outstanding collection accounts to qualify for an FHA Loan.
- Medical collection accounts and charge off accounts are exempt from debt to income ratio calculations
- However, if you have outstanding non-medical collection accounts that have outstanding unpaid balances of $2,000 or greater, then FHA Guidelines On Collection Accounts require that 5% of the outstanding unpaid balance needs to be used as a hypothetical monthly debt
- This holds true even though the borrower does not have to make any payments
- Removing the outstanding collection accounts of the borrower’s credit report will solve the lender not counting the debt to income ratios
- This is because deleting collection accounts cannot be found out since they are not public records
- Many borrowers with larger outstanding collection accounts and higher debt to income ratios try to dispute derogatory credit accounts by settling with the creditor via pay for delete
- However, there are times where the creditor and/or credit bureaus will give you a very difficult time when you try to retract a credit dispute
We will explain in this step-by-step guide how to remove credit disputes from your credit reports and how you can do it yourself.
How To Remove Credit Disputes Off Credit Report: Fast Track
This rapid correction method on how to remove credit disputes can help consumers who need to get the verbiage of “Consumer Disputes This Account” statements that are showing on their credit reports removed from an account quickly This can take anywhere from 30 minutes up to 2 hours to accomplish.
What You Need to Get Started:
- Get your Credit Reports directly from Experian and Equifax (this has been discontinued in 31 states) (TransUnion does not require this)
- You will need the Report Number on the reports provided by the credit bureaus from Experian.com and www.Equifax.com
- Note the names and account numbers of the accounts that have the Dispute status on your credit report
Make The Calls:
- Once you have found this information you will need to call the credit bureaus that is showing the credit disputes
- The telephone numbers provided are for the dispute department that you will need to contact to speak with to accomplish this task
During the conversation, you will give the representative of the credit bureau the account number that is being disputed. You will also need to ask if the dispute has been placed by the credit bureaus or the creditor and/or company.
WARNING: Reaching a human at each of the credit bureaus will be next to impossible. Gustan Cho Associates has a step-by-step guide on how to reach a human credit bureau representative. Please take a few minutes to read this popular step-by-step guide on reaching a human representative. Click This Link HOW TO REACH A HUMAN AT THE CREDIT BUREAUS
ASK THEM TO REMOVE THE DISPUTE!
Original Creditor Dispute:
- If you find that the account was put into dispute by the creditor, you will need to contact the creditor directly
- Ask them to remove the account from disputed status and to update the credit bureaus with the information that this account is no longer in dispute
Follow Up:
- To ensure that the account has been successfully removed from Dispute Status you can call the above-listed numbers to find out the status
- The above process of removing the credit disputes usually takes 5 to 7 days to be completed
Sign up for Credit Karma. There is no fee for this. You can check your credit scores and credit report on Credit Karma at no cost. Credit Karma will also send you an email alert if there are any changes to your credit report.
Conventional Method on How to Remove Credit Disputes
The second way on how to remove credit disputes is by completing the form that is listed below and faxing it to the credit bureaus and the creditors and requesting that they remove the credit disputes.
- Credit repair experts recommend that you send this to both the credit bureaus and the creditors
- The fax numbers listed may not be active, we recommend that you still mail a copy to the bureaus via certified mail as well
This process can take anywhere between 30 to 45 days to complete but works well if the issue needs to be addressed but is not an urgent matter yet.
Dispute Letter Instructions:Step 1: Copy and Paste the text below this box into a word processing application such as WORD. Step 2: Copy and Paste the credit bureau name and address that you are sending this letter to – if you are sending this letter to a creditor then you will need to look up the name and address for the creditor. Step 3: Type out the name and account numbers of the accounts in dispute. Step 4: Type out your personal information in the appropriate places on the form provided below. Step 5: Make sure to include a copy of your driver’s license, social security card, and current utility bill with your dispute. Step 6: Mail and/or fax your dispute letters to the credit bureaus and/or your creditors in dispute. |
Attention: _______________________
Address: _____________________
City, State, ZIP: _______________
The following accounts are being listed on my credit report as being in dispute. I no longer wish to dispute this account and consider it resolved for now. Please remove this statement from the following accounts:
{{{List Account Name and Number}}}
Thank you for your help regarding this issue.
Sincerely,
Name: ______________________________________________
Social: _______________________
DOB: _______________________
Address: _______________________
City State, ZIP: _______________________
The above are the steps on How To Remove Credit Disputes on your own. If you are in the middle of the mortgage process, your loan officer can help you with retracting your credit disputes.
Comments: 13
My sincere appreciation goes to Alex Carlucci and Massimo Ressa, through their relentless efforts my credit score is now 790 from 542, He removed the hard inquiries and collections on my credit, Cleared the eviction and judgments on my report including auto loans and student loans are gone without a trace, just like they were never there. I highly recommend him for all jobs on credit repair. Get in touch with Alex Carlucci of GCA Mortgage Group. The team at Gustan Cho Associates have been stellar and the best group of professionals I have ever worked with. I like to thank Dale Elenteny and Maria Windham of Gustan Cho Associates as well.
How long did it took ?
Resourceful article. You have revealed some of my query. These days, people face many problems that break peace and happiness of their lives and the issues like, immigration help, property settlement, unhappy married life, adoption, abduction, divorce, child support etc. These problems need extra attention to be done legally. If you want more information you can visit Gustan Cho Associates. I like to thank Alex Carlucci for the great informational videos on YouTube and Rumble.
If you have an account that is in dispute (with an “account disputed” comment) but has a positive history, free of any late payments or a charge-off, then disputing negative credit tradelines will increase your scores. Removing the dispute comment will definitely drop your credit scores. I am in Indianapolis, Indiana and I want to get out of land contract and have a better interest than the one I have.
Hi! If the disputes verbiage says it’s been disputed but resolved, will removing that verbiage still make the scores drop? These dispute verbiage has been on our reports for over a year but need the verbiage removed to qualify for a loan. Thanks for any input!
Yes they do.
Hello,
I am looking to see if I qualified for a loan. My husband and I are in a Chapter 13 that should end by the end of this year 2021. Payments are taking out of my payroll and they are always on time.
My husband has a 591 credit score and I have a 600 credit score. We were informed by a lender.
We would like to see if we qualified for any loans while in the Chapter 13.
Thank You
Good day! I am so excited today because, two months ago My bank account details were compromised from the bank data, about $28, 000.00 was transferred out of my account. Bank fraud was said to be the cause, and the squad in charge of fraud is investigating. I was told it will take some days to trace the money, I might not get it all back. I took it upon myself by doing an underground investigation by consulting with Gustan Cho Associates, whom I worked for them many years ago. While I was searching on Bing for something else. I would just like to say cheers to a marvelous fund retrieval and bring justice by revealing the identity of the bank staff who connived with another hacker to steal customers’ money through the help of Tami and Laurie in 24hours. The culprit has been handed to the police for further investigation as he claims he has been doing it for 2 years plus. My friend Javier Torres was also a victim of fraud.
Hello. I’d like to find out about pre-qualification. Do you use the mid number of the three scores or the lowest. Also how do you factor in student loan debt? Kind regards
My credit score was 664 last October, I applied for a credit card but my application got declined (Idk why!)I lost 25 points, then the credit score started dropping down by 35 points in November, 43 points in December and about 27 points in January, I had an outstanding auto loan for $62000 and $300 credit card (I usually pay off biweekly) but I exceeded the limit by $2 one time, and a phone bill paid on time, I didn’t have any inquiries in the last 14 months and haven’t missed a payment in my life, this had affected my Credit so bad. Last month I wanted to buy a house and move my family away from my old house but I was denied, It was a drastic moment, luckily for me I discussed it with my old friend in college, he told me he had similar issues and got it solved with the assistance of Dale Elenteny of Gustan Cho Associates. Alex referred me to people he helped. He referred me to Jon Tulien. Jon said he helped him and his wife removed negative items, collections and finally increased his credit score, I told him “this is too good to be true” he made me know he felt that way too until he gave him a try, we spoke on phone too after several conversations we both got a deal. To my greatest surprised he did the same for me, my late payment change to on-time payment, eviction and debt was removed from my credit report and my credit score increased to 786, This is epic! I couldn’t believe my eye, until I purchased a house with my current credit profile and was approved
Hello,
I began the process of applying for an FHA Loan in 2018. The process was going smoothly until we learned that I had existing IRS Tax Liens. The liens were not discovered by me or the lender, they were discovered by the Title Company I selected. I had no knowledge or the tax liens which were several years old. Oddly, that the IRS had not made attempts to collect on the balances due.
My Lender advised that they could not move forward with the FHA Loan until I established a payment plan with the IRS and three consecutive monthly payments were made to the IRS. I set up a payment plan with the IRS and have completed three payments for the months of April, May, and June 2021; the 4th payment will be on July 28. I was told by the Lender that I only needed to show proof of payment arrangement, three consecutive monthly payments to the IRS, then reapply for the FHA Loan, and I would be approved. However, I reapplied and now the Lender is stating that the Underwriter will not approve the FHA Loan as I have late student loan payment history from 23 and 22 months ago: payments from July 2019 and August 2019. The Lender states that they had to do a manual downgrade because I have tax liens that were not reporting on my credit report in the last 2 years, and with the late student loan payments they could not meet FHA Underwriting Requirements. Even though the late payments from July 2019 are no longer an issue by the end of this month they must use the 24-month payment history from the date the original FHA Loan application was filed, March 2021. These are clearly important details my Lender overlooked and failed to counsel me on prior to me reapplying for the FHA Loan.
I have been with my current employer for four years. I make a good salary. I have received consistent merit increases each year; most recently an increase of over 9%. I have more than enough funds to have covered the down payment and closing cost for the FHA Loan.
I believe that I may be missing something and do not have a full understanding of the FHA Loan requirements as I feel the final decision was based on the Underwriters’ discretion. If that is the case, I do not know how I can avoid this problem moving forward.
I do not know if you service Philadelphia, PA, but I am hoping that you can share some insight into my situation.
Thank you for your time
I am in my 3rd year of Chapter 13 bankruptcy and owe a remaining approx. $60k. I have property with approx. value of $500k, but owe $200k in mortgage. I would like to know if it is possible to redo my mortgage, getting some of the equity to pay off my bankruptcy? I live in South Carolina.
Thanks for your time!
Alex Carlucci will call you shortly. Alex’s number is 630-915-7550. Looking forward to working with you and your family. We are licensed in South and North Carolina.