Credit fix report errors stop first-time home buyers from grabbing the keys to their new home. Fannie Mae rushes in to review policy preventing scammers from hiding a bad credit past.
Angry & confused is what happens when new home dream disappears...for now! photo credit: tikibata
Maurice Roberts and his wife found their dream home.
They have 20% to put down.
They have W-2 verifiable income.
They also have good credit.
Should be a slum-dunk, right?
That’s what Maurice and his wife thought until their mortgage professional called them with some strange news.
Click Read More below right now to find out why you should not dispute INACCURATE credit file information if you want to buy a home. This is a little hard to believe.
Oh wait, it’s the government we’re talking about here.
Why didn’t you say so. Anything “shocking” is to be expected when the government’s involved.
DO NOT DISPUTE YOUR CREDIT REPORTS….
Maurice followed the book on buying a home.
He first pulled his own credit reports and discovered damaging credit information that was NOT his.
So he did what I expected him to do. He informed the bureaus reporting this INACCURATE information (in writing).
Maurice didn’t have to do any of this. He was golden with his ultra-impressive 800 middle score and a large down payment.
Maurice could NOT be more golden.
Oops, there’s a problem. Fannie Mae has a policy that requires lenders to hand-underwrite any loans where’s there’s any type of credit dispute. Maurice informed the bureaus in writing of inaccurate account information on his reports. Minor stuff. Obviously didn’t affect his 800.
Still, it’s Fannie Mae policy and you don’t screw with government policy as idiotic as it is.
Apparently, this policy is needed to control/prevent/minimize scammers from using the credit dispute law to hide bad credit.
Of course, this policy is extremely unfair to good people like Maurice and his wife who are simply doing what they should do and that is to challenge inaccurate information.
What will happen to Maurice’s new home? That will depend on how quickly the bureaus can pull the “in dispute” off Maurice’s credit file. In this case, Maurice would benefit from ANY response, even a verified as accurate response.
He clearly has the credit. Anything above 760 is golden. In the meantime, I will not hold my breath waiting for Fannie Mae to review a STUPID, harmful policy. I don’t recommend you hold your breath either.
Credit fix report absurdities often leave me shaking my head. What do you do? You might as well go outside and scream at the top of your lungs and pray the seller extends closing, keeping Maurice under contract. You might be quick to blame Maurice’s mortgage person for not spotting this red flag. In all my years in real estate (and I have a mortgage broker’s license), I have NEVER heard of such a policy. Have you heard of this policy before? Please scroll down and tell me about a similar experience you’ve had or share in Maurice’s and his wife’s anger/despair. Misery loves company.
Welcome back! Got a question for me...or an experience to share? Please go to the bottom of this article to ask a question or share an experience. :) Thank you!
Loading ...
{ 1 trackback }