My Mortgage Company is Giving me the Run Around. I’m in Foreclosure. What Should I Do?

Posts Tagged ‘dispute’

My Mortgage Company is Giving me the Run Around. I’m in Foreclosure. What Should I Do?

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Q: My Mortgage Company is Giving me the Run Around. I’m in Foreclosure But Can’t Get a Straight Answer About My Options or Payment Plans. They Say I Owe $5,300, but They Say I Have $2,400 in Money That They Have Not Applied and $3,048 That’s Up in Their System Through Western Union Payment That They’re Sending Back Because It Wasn’t the Right Amount. What Should I Do?

A: My best advice is to keep very detailed records of all your transactions, conversations, payments and all correspondences with your lender. Sometimes, mortgage companies and banks will refuse partial payments. And rather than cash a check that they deem to be less than the full amount due, they’ll return the entire check. It sounds like something to that effect may have happened in your situation – at least with that roughly $3,000 payment they’re allegedly going to return. I noticed that the full amount of money in dispute — that $3,000, plus $2,400 that supposedly has not yet been applied – actually equals a little more than the $5,300 that they claim you owe.

I know it’s frustrating to get the run around and to not have clear answers. But I think you really do know (or should know) if you are in arrears or aren’t. You said you’re in foreclosure. And I assume that’s because you’re behind on your mortgage. Are you behind solely because of these disputed payments, or is there something else going on? If your payment delinquency is only due to these outstanding payments that you’ve made, but have not yet had credited to your account, then I would get some legal help in dealing with this matter. Reach out to a free legal aid clinic in your area, or turn to a reputable foreclosure prevention group for additional help. One good anti-foreclosure group is NeighborWorks (http://www.nw.org).

NeighborWorks is a national non-profit organization that employs a team of mediators to act as go-betweens for lenders and borrowers. NeighborWorks counselors often work out deals for homeowners. They also run the popular toll-free foreclosure prevention line: 888-995-HOPE.

How do I know if someone offering me a mortgage is legitimate or a foreclosure rescue scam? (askthemoneycoach.com)
Foreclosure Rescue Scams: How to Recognize Bogus Mortgage Help (askthemoneycoach.com)

How to quickly boost your credit score

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Author: The Money Coach

Q: I Have a Credit Score of 625 and Am Trying to Refinance a Loan. The Bank Says My Credit Score Must Be a 700 to Get a Loan With Them. I Have an Existing Loan and When I Got it 4 Years Ago, My Score Was About a 710. I Need to Fix My Credit Soon Because My Loan is a Balloon Loan (That Comes Due) In About a Year. How Can I Clean Up My Credit Quickly?

A: The two absolute fastest ways to significantly boost your credit scores both involve getting negative information deleted from your credit files. If you have anything negative on your Equifax, Experian or TransUnion reports that is outdated, inaccurate or that can’t be verified, try contesting that information directly with the credit bureaus. Use their online credit dispute services for the fastest possible results. I’ve disputed information online and had erroneous information removed in just a day or two. Here are the direct websites for the credit bureaus to initiate an online dispute:

http://www.investigate.equifax.com
http://www.Experian.com/disputes
http://www.Transunion.com/investigate

Additionally, since you are trying to get a mortgage, you can utilize a service known as “rapid re-scoring” also known as “credit re-scoring.” Read this post about rapid re-scoring to learn how to get errors removed from your credit report in just 48 hours.

There’s no guarantee that either of these methods will boost your credit score by the 75 points you are seeking, but it’s certainly worth a shot. And if there is negative information that gets removed, you will likely experience some boost to your FICO scores.

However, if there are no mistakes to dispute, trying paying off some or all of your credit card debt. That will usually improve your credit scores. Even though it may be a hardship to come up with the money to pay off credit card bills, it’s helpful to become debt-free. Not to mention the short-and long-term savings it will net you from snagging that better loan when you are able to refinance.

For more tips on how to improve your credit score, pick up a copy of Perfect Credit: 7 Steps To A Great Credit Rating

If I Dispute Something on My Credit Report Will It Re-Start the Time on the Debt?

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Author: The Money Coach

Q: If I Dispute Something on My Credit Report That I Feel Is Not Legit Will It Re-Start the Time on the Debt? I Have a Debt That Will Drop Off in Another Year and I Want to Dispute It But I Don’t Want to Restart the Clock on the Debt. Should I Dispute It or Leave It Alone?

A: Disputing a debt with the credit bureaus will not restart the clock on the debt. Therefore, if you feel the debt is not legitimate, I would encourage you to contact Equifax, Experian and TransUnion to get the debt removed from your credit files. After you initiate a dispute, the credit bureaus have 30 days to reply to your request. Any information that is outdated, inaccurate or that can’t be verified must be removed, in accordance with the Fair Credit Reporting
Act.

The best way to dispute a debt – and to have it quickly removed from your credit reports – is to do an online dispute.

Use these websites to reach the credit reporting agencies and dispute errors:

http://www.investigate.equifax.com

http://www.Experian.com/disputes

http://www.Transunion.com/investigate

Can I remove a medical dispute from my credit report?

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Author: The Money Coach

Q: My Credit Report Has Three Medical and Hospital Delinquencies that are Being Reported as of 2006 – 2011. However, These Alleged Charges for Which I Have Always Disputed Were From the Years 2002 and 2003. Can These Charges and Reporting Be Removed From My Current Credit Report?

A: In a word: yes, those old, alleged medical and hospital delinquencies can be removed from your credit report, but it will likely take some focused work on your part to get them eliminated. Sometimes, medical collection accounts show up on a credit report even after 7 years if a person has paid monthly payments on the debt or has somehow “reactivated” the account by giving lump sum payments, partial payments on settlement payments to get rid of creditors. In your case, you may not have done this, since you said you’ve always disputed the debts. Nevertheless, be aware that a medical bill alleged to be past due might take a year or so (could be more time; could be less) before it’s reported as a collection account. If you had a hospital bill they claimed you owed, from 2003, and it wasn’t reported to the credit bureaus until 2004, that information would remain on your credit report until at least 2011.

Here’s what to do: if the debts are, in fact, more than 7 years old, simply dispute them online at Equifax, Experian and TransUnion. When you specify a reason for your disputes, state that the debts are outdated. If you get nowhere with the credit bureaus, write to the hospital or medical institutions in question directly. Let them know that they are violating the Fair Credit Reporting Act by reporting a debt that is more than 7 years old, and issue a firmly-worded letter insisting that they cease and desist all such reporting to the credit bureaus.

Ask The Money Coach

Posts Tagged ‘dispute’