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Paying off Collections to get approved for a Mortgage


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What do you suggest for someone who is trying to get approved for a home? I know you say to do a debt validation or dispute it on the credit reports but I am trying to get approved by January 2004. A lender will not approve you with collections on your report. What you are suggesting probadly will work but it is time consuming. I have two collections. I have the money to pay them off. I am considering settling the accounts for less money. My lender says my score should improve once the collection are showing paid on my credit report. She says the longer a collection stays on your report the lower my score will remain.

I have about $2,000 in collections. I paid on one of the accounts this summer. I owe $752 on that account which I plan on paying off once I have settled. The other collection item is for $1300 which I was considering settling just to have it closed.

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First and foremost when you are at the point of being ready to settle you want to make sure about the SOL of the debt. If it is past sol, the time they can take you to court, then that gives you a bit more room to get what you need.

Second, never ever ever, believe what they tell you to be true. Oc's ca's and cra's do lie and say what they know you want to hear.

Third, everything is to be done in writting and never make a move without this.

Give your state and the types of debts these are, are they with ca's or ocs? When was the last time you paid these to the oc's without any late fees or derog itmes on it? Also list the state that the ca's are in, and you can pm me the name of the actual ca's so I can look up their license info.

Also are you willing to pay in full or would you hope for a smaller amount?

Have you started to rebuild your credit? Do you have open cc's and installment loans that report each month on the good side?

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