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Paying off collections


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Ok a friend of mine is getting a mortage her loan officer said she was pre approved but she needs to pay off two collection accounts. The one is suppose to fall off in Oct of 2004 its for 150.00 and the other is suppose to fall off jan 2005 --If she pays these off will it start the 7 years all over again. Both oc have long been gone from her report. The sol have expired and she even called the underwriter and send him info on the sol but he said nope they need to be paid. She is refin here home to a fixed rate. Her score are 674-631-573

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That's a tough one because time is of the essence. Because the SOL has expired, there is no reason for the CA to continue collection activities.

Try writing the CA's directly and point out the SOL has expired. If they want any money, they will make a settlement offer and delete the entries upon payment.

Anyone else?

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Do not, for any reason, let the CA's know you are refinancing your home. If they have knowledge, they will hold for the whole balance.

Use wording such as "I am aware the SOL has expired and you have no legal recourse to the debt, but, I would like to offer you a settlement to assure this matter is resolved amicably. My offer is (25%) of the amount you claim I owe, along with your deleting your TL from all of my CR's." More than likely, they will not accept it, but, will usually offer a counter of at least 60%. You would counter back at maybe 40%. Then again, they may be nasty and want it all. This is a hard one to do, but, can be done with persistence.

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Not a problem, Doc. Remember, we always watch each other's backside. Especially if we missed something.

:)%

Problem is gents, if the CA's take a peek at his/her report they will see the mortgage inqs

Very true if it's listed as a mortgage co. Many use third party report services, so the name actually comes up as that company's name, not the actual mortgage company. Kinda like ChoicePoint.

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