Pili

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So I am planning to buy a house where I match and looked into BOA physician loans. They told me I need a 720 credit report score, which I don't have because there's an inaccuracy in 2 out of the 3 bureaus where a collection agency says I owe them 75 bucks (I don't). I do have >720 in Experian. BOA recommends paying off this inexistent debt. Any other physician loans out there? In the meantime I am trying to get the inaccuracies deleted. Anybody else in this scenario? :confused:
 

Clay

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Check out all of your local banks for professional/physician loans. Most banks do have them and their requirements will differ from bank to bank. Typically, the loan is no money down except for closing costs and a little higher interest %. I actually got one as a medical student. I shopped around and found that 95% of the banks had them.
I don't know anything about BOA loans, but as soon as you know where you are going get in contact with a realtor or bank (in your residency moving packet).
 

Fermi

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Pili said:
BOA recommends paying off this inexistent debt. In the meantime I am trying to get the inaccuracies deleted. Anybody else in this scenario? :confused:
I was actually in a similar situation before I bought my house. An account had been either fraudulently or mistakenly opened by someone else under my social security number, and suddenly I had a collection agency demanding ~$140 for this long-delinquent account. I was in the process of house-hunting at the time, but "fortunately" this came up earlier on and not during the final credit check or something.

The letters sent by the collection agency outlined a process for dispute, which I did. I then filed a consumer fraud/identity theft report with the state in which I was living at the time. It took a couple months but the company cleared the debt.

The most frustrating part of this came when I tried to call the company directly to find out who opened my account. I gave them my SSN and the account number, which I had from the credit report, and said that I was calling because they had sent this account to XYZ collection agency and I needed more info because I was filing a fraud claim. The phone rep asks for the phone number or address on the account. Well, duh, of course I don't have that information because if I did, I would have sent the cops over there a long time ago. So she says she won't give me any information because I am not the account holder. Well, lady, whose SSN is on the account?! So basically, the criminal is protected by the company more than the SSN holder, the only one whose credit is on the line here. Only after I got the state involved was I able to get further information.

Long story short, it could take you a while to resolve your situation. Whether you pay it off or dispute it, you will have to be very proactive in getting the collections people and the credit agencies to clear up your record. Document everything well and possibly show it to your mortgage officer if they raise eyebrows about your credit score. In the long run, I think it will be better for your credit to have the inquiry cleared instead of just paying it off, but you shoudl get professional advice if you're really concerned about it.
 

DJ Trauma

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I was also in a similar situation not too long ago. It was a major hassle to resolve the situation, but in the end, it worked out. Whatever you do, do NOT pay off the "inexistent debt." Once you pay it off, you can no longer dispute it and it will remain on your credit report. Collection agencies will try to bully you into paying it off, but don't be intimidated. You need to contact the company to which this money is owed and let them know that the account was opened fraudulently. In most cases, they will ask you a bunch of questions and then close the account and remove it from your credit report. This can take a few months to be updated on your credit report, so ask them for a letter documenting that they are removing the account from your name, etc. You should be able to get this type of letter in 1-2 weeks, and you can show it to your mortgage lender to prove that your credit score should be higher than is reflected on the credit bureaus' reports.

Another thing that I would advise you to do is definitely contact the company that you owe money to, and NOT THE COLLECTION AGENCY. From my experience, a lot of the customer service folks working at collecting agencies are mean, accusatory, possibly even mildly mentally ******ed, and not helpful at all. I mean, they're paid to collect a debt, not help you dispute it, so it's not part of their job to be helpful to you. I've had much better help when I've contacted the company with whom the account originally was opened.

Finally, to help prevent this from happening again, you can place an "alert" on your credit report with the three credit bureaus. This means that whenever an account is opened under your name and SS#, you will be notified. It's a little bit annoying because now whenever you want to get a loan or a new credit card or whatever you have to take an extra step to verify that it's actually you who are requesting it, but it will also make it harder for anyone to steal your identity in the future.

Good luck.
 
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Pili

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Thanks for the input, everybody. I agree that the collection agency was mentally ******ed, in fact I had to hire a lawyer to send a "cease and desist" letter, as they kept calling and making threats in spite of my requesting they do not. I have sent a letter to the bureaus. If they cannot validate the debt, then they must delete it by law. Unfortunately, the original company are as ******ed or more than the collection agency, so I cannot accomplish anything via them. Also, I only learned about this problem now, when in fact the collection account has been there for 3 years. :(