Divorce, Bad Credit, and first time home purchase…?

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Long story short…

I went through a divorce 3 years ago…it ruined my credit, and I’m in the process of bringing it back up. I’ve disputed several things on my report that should have been removed from the divorce. Some have been removed and I’m still waiting on others. There are items on there that are listed 2 times and the company will not remove it. However, I have raised my credit score from the low 500’s to 701 according to experian. I’m currently trying to get pre-approved for a home loan…it will be my first time purchase, but these duplicate items are what is holding me back now I believe. I talked to a loan officer at a local bank and when he pulled my report he listed those items to me and said they would need to be taken care of before I could get approved even though I have a credit score in range.

My question is…what are my options…these items were from the divorce, and it’s for some reason showing as a duplicate on my report…what can I do to get approved for a home loan? Are there any companies out there that help with special situations or is there any other way I can get this removed?

Thanks for your help!

4 Comments
  1. Reply
    Bills.com
    November 10, 2011 at 4:30 am

    The Federal Trade Commission lists the following steps as the appropriate method for resolving credit reporting inaccuracies:

    Step 1: Get Your Credit Report
    An amendment to the FCRA requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months.

    The three nationwide consumer reporting companies have set up a Web site, toll-free telephone number, and mailing address through which you can order your free annual report. To order, visit AnnualCreditReport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can print this form. Do not contact the three nationwide consumer reporting companies individually.

    Step 2: Look for Errors
    Review the report and compare the information it contains to information you know to be accurate. In particular, make sure the report contains your accurate information.

    Under the FCRA, both the consumer reporting agency (i.e., Experian, Equifax, or TransUnion) and the information provider (i.e., the person, company, or organization that provides information about you to a consumer reporting agency) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under this law, contact the consumer reporting agency and the information provider.

    Step 3: Correct the Errors
    Tell the consumer reporting agency, in writing what information you think is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request that it be removed or corrected. You may want to enclose a copy of your report with the items in question circled. Send your letter by certified mail, “return receipt requested,” so you can document what the consumer reporting agency received. Keep copies of your dispute letter and enclosures.

    Consumer reporting agencies must investigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information.

    After the information provider receives notice of a dispute from the consumer reporting agency, it must investigate, review the relevant information, and report the results back to the consumer reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file.

    When the investigation is complete, the consumer reporting agency must give you the results in writing and a free copy of your report if the dispute results in a change. This free report does not count as your annual free report. If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The consumer reporting company also must send you written notice that includes the name, address, and phone number of the information provider.

    If you ask, the consumer reporting agency must send notices of any corrections to anyone who received your report in the past six months. You can have a corrected copy of your report sent to anyone who received a copy during the past two years for employment purposes.

    If an investigation doesn’t resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the consumer reporting agency to provide your statement to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service.

    Step 4: Dispute the Errors
    Tell the creditor or other information provider, in writing, that you dispute an item. Be sure to include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct — that is, if the information is found to be inaccurate — the information provider may not report it again.

    I hope this information helps you Find. Learn & Save.

    Best,
    Bill
    http://www.bills.com/blog/

  2. Reply
    Billy
    November 10, 2011 at 5:02 am

    Wells fargo bank is the best bank for bad credit home loans. Requirements are easy and simple. First you MUST have a credit score of 600. You qualify just with that. And apon that it is usally ony $ 100 Down!

  3. Reply
    spidergoat2
    November 10, 2011 at 5:27 am

    There are attorneys that specialize in dealing with credit reporting companies. But before that, send a registered letter to someone higher up in the company. Simply state that you are trying to buy a house and their incorrect records are preventing you. Unless they correct your record immediately, you will take every remedy available to you by law.

    What that means is that you will sue them. If your credit is damaged, they have to pay. If you can’t buy the house because of their screw up, that have to pay big time. I wouldn’t worry about not getting the house. If you lose it, it will mean big bucks for you.

    You will need a written statement from your loan officer stating that you are being denied a loan because of the entries. You may want to consult with a lawyer now just to get everything you need for a lawsuit.

  4. Reply
    Anil S
    November 10, 2011 at 6:18 am

    Forget all and marry a nice person who can shoulder the responsibility and together both of you make a nice life . Also the past experience shall guide you the behavioral science and both of you will refrain the mistakes to maintain best future . Lots of cases, i found and they are all happy. Only thing, while selecting a man who comes in your life with laurels, should not be examined with the skeptical yard stick of cast creed, ethnicity etc .

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