I'm having troubling getting a home loan with Bank of America due to a resolved dispute.?
I was told that my wife and I were pre-approved for a home loan by Bank of America. Now, after finding a house and signing a contract agreeing on a price and closing date, I'm told that because we disputed a charge, we felt we were charged too much on a vet bill, we are being told we cannot get the loan. We dropped that dispute and now it is listed as resolved on Experian. Despite this we are told we would be downgraded and would not be eligible for a loan. I'm a bit confused. You should know that we have no debts. The only other thing we have going against us is a negative report Sallie Mae made on a education loan a year ago. That has been completely paid and we were told, in person and by email by our loan officer, that the negative report would not hurt us in our efforts to get the loan. As I stated earlier the only thing hurting us is the presence of a dispute marked "resolved" on Experian.
- Simpson G.Lv 71 decade agoFavorite Answer
The negative report from a year ago may be affecting you. Remember, banks are being very fickle about giving loans and any blemish can be used an excuse to deny you.
I'm not sure we are getting the full story on the vet bill dispute. A dispute does not appear on your credit. If you failed to pay your credit card bill due to a dispute, then yes, you have a blemish for not paying your credit card bill.
When you dispute a charge, you are still obligated to pay the part of your bill that is not being investigated. You also must have an active investigation going on with the credit card company regarding the dispute. The dispute must have been made within a certain period of time, usually within 60 days of the billing statement with the disputed charge.
If you followed all these rules, then your credit card company needs to remove the negative issue from your credit. They CANNOT report you to a credit agency for failure to pay as long as their guidelines are followed.
I've disputed many charges on my credit card, and it has NEVER shown up on my credit record. One dispute dragged on and on for months and actually ended up involving the police and USPS, but I have no blemish on my credit record from it.
- Anonymous1 decade ago
It depends on what type of loan you are applying for.
If you are trying to get an FHA loan you should be fine, but it depends on your mid scores.
If you're trying to get a conventional loan and you are not putting 20% down, the PMI company may be the issue.
The main thing you need to know is that lenders have their own guidelines so this could very well be a specific issue that Bank of America has.
You should start looking for another mortgage banker/broker.Source(s): I'm a mortgage banker/broker http://www.fhamortgagesdoneright.com
- ChristinaLv 44 years ago
First thing I think home mod are a myth and really do not exist. I see short sale all the time but no loan mods. Think about it this way, you want the lender to lower your interest rate or lower the balance on the loan. Your credit is now shot to hell. It is easier for them to do a short sale or just foreclose and take a loss. I do foreclosure appraisals and short sale appraisal all the time, but Never have I done a loan modification appraisal and never heard of anyone getting one.
- MikeLv 61 decade ago
You will never get worse service while trying to obtain a mortgage than when you go to a huge money center bank.
With your record you'll get a better rate, and less headaches, if you go to a bank that actually wants your business. Try bankrate dot com for your area. The only time I've ever had a good experience with a big bank has been with Citi, and that was only because they were circling the drain.
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- Anonymous1 decade ago
While trying to sort the problem out with B of A, you may want to start looking for a backup lending source. I am not saying that the result will be any different, but it is worth a try. Email me for more info if you would like. I am not a lender, but I would be glad to help.