Posted by James Strange on September 03, 2003 at 22:37:39:
Follow the good advice from Bruce. And be prepared to show the lender what happened.
James Strange
Credit/Apartmnet Building Finance Problem - Posted by DJ-n-NC
Posted by DJ-n-NC on September 03, 2003 at 06:38:46:
My wife and I were in the process of purchasing an apartment complex of 162 units when we found out she has a newly reported 30-day late on her credit that was perfect before (never late on anything). We had a situation that she paid one of her creitors with a check but did not know… Let me start from the beginning. There is a company (Comp A)that we paid for services that cost $2000 We paid this company several months ago with a check over the phone. The problem is I have a very common name (so this company’s story goes) and they credit my payment to another customer yet they render the service. We think everthing is fine and go on with life. My wife pays one our creditors (creditor A) with a check from the same account. Unknown to us Company A has set up themselves an ACH draft of our checking account for the funds they thought they had not received so when our check to Creditor A attempts to clear the bank it bounces. Creditor A dose not immediately notify us but tries to rerun the check which along with fees and a missing $2000 dollars sets off a chain of bank charges and fees. Well once we find out we contact all our credits and let them know the deal along with getting them a copy of a letter from Company A admitting they screwed up. All our creditor agree not to report negative info on our bureaus assumimng there is some to report. This goes smoothly for the first 30 Days then I pull credit a week ago and I see that Creditor A has reported a 30 day late even though the agreed not to (not in writing) we contact them they now say that since “technically we got our money late there is nothing we can do now.” I’ve said all this to say is there anything I can do? I’ve heard of companies that can correct your report in as little as 5 days if you have a letter from Creditors stating that the info being reported is incorrect. Will this work for me? All I have is the letter from Company A stating that they screwed up. What can I do?
Re: Credit/Apartmnet Building Finance Problem - Posted by Bruce Lawson
Posted by Bruce Lawson on September 03, 2003 at 09:50:59:
Hi DJ,
Late pays are one of the easiest things to repair on a credit report. Dispute the late pay with the reporting company, they have thirty days to investigate. During their investigation they will discover the company who reported the late can not come up with the proof of the actual time that payment was late, therefore the 30 day late was an inaccurate entry on your credit report. The Fair Credit Reporting Act states that if an inaccuracy is discovered it must be corrected or deleted from a credit report immediately. In the situation you are discribing that entry eill be updated to paying as agreed never late. I would suggest you check all three credit reports for the same error.
Feel free to e-mail me if you would like.
Sincerely,
Bruce Lawson
Re: Credit/Apartmnet Building Finance Problem - Posted by ohyeah
Posted by ohyeah on September 03, 2003 at 07:12:05:
First off…, if your capable of buying 162 units…the lender will be able to understand documentation to support ONE 30day late excuse…if you can’t float 2,000…, you won’t be buying 162 units.
Now the real story…, Just ask a real question…the problem is that most financial firms automatically report payment history’s via computor and this can not be corrected by a human…you can dispute the late pay with documentation to the credit agencies and this will help…If you are in business, I suggest some sort of overdraft line to compensate for errors in the future.
Re: Credit/Apartmnet Building Finance Problem - Posted by DJ-n-NC
Posted by DJ-n-NC on September 03, 2003 at 07:36:53:
the reason I stressed that the transactions were all from one particular account is because that this is/was a seperate account we usually use only for bill paying we do not keep extra funds in it to sit around and do nothing. that is exactly what the problem was we only keep enough money there to pay for what checks have been written plus the bank fees. We have already been approved by two diiferent lenders for the complex my fear is that they will repull credit before closing and I will end up with a problem. once again it wasn’t the $2000 but the lack of pre-planning for a $2000 dollar error in checkbook balancing. besides it should have been clear that if I told you we were buying 162 units that floating $2000 dollars would probably not be a problem