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Gracie14232

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Disputing a collection account after paying
Ok, so here's the situation. I've been working on my credit for quite a while now following a ch. 7 bankruptcy nearly 4 years ago. My score has jumped from 480 to 627! My husband and myself have been wanting to buy a home through the USDA program which would give a low fixed interest rate with $0 down (although we do have a small down payment). Everything we qualified for with FHA had a much higher interest rate.
Everything was excellent with our lender for USDA and then we hit a snag. USDA requires zero collections accounts in the past 12 months. We reviewed the collection accounts and found out that they were inaccurate and never should've happened. One of the two places immediately resolved the issue and the entire account was deleted from my credit report. The second one was for a medical bill that my insurance was supposed to fully cover. I was assured at the time of the visit that it was covered 100%...well, it wasn't. To make matters worse, it was for $69!!! If I would've known about it I would've paid it then and there! We also moved and my phone number changed (got a promotion and my company started furnishing my phone). Of course the creditor wouldn't talk to me and the insurance agency that was supposed to cover this will only argue with me. I've called AAMS (the CA) and even sent good will letters to the CEO. One GW letter even included the payment amount (I was desperate) and now it is showing as as a "closed" collection account with a zero balance. I'm LITERALLY $69 from being approved for our home loan. Is it possible to dispute this charge with the CRA's and have it removed? How likely is it that it would be removed? It NEVER should have been there to begin with!

PS
Sorry for the life story ;)

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Yes, you can write letters to all three CRA's and state it was placed in collection in error and ask that it be removed.  If that doesn't work, visit www.naca.com, you can get a house thorugh them with 4% interest, zero down, zero closing costs and credit scores don't matter.  They are a legit non profit agency.

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