MKG122001 Posted April 5, 2007 Report Share Posted April 5, 2007 We are refinancing and are supposed to close in the next week or so. However, the more I read here the more I become uncertain of the path were taking in this. My husband has collections (all older, before I knew him...5+ years) totalling $13K. With the Fannie Mae loan we are getting (6.5% fixed rate), these all have to be paid at closing. That is fine, we have plenty of equity to do so, however, I'm wondering if this is the "right" move. My husband has been able to negotiate this amount to about half of the 13K. We also will probably be moving in 2 years or so, and will obviously need a new loan at that point as well. Is it better to just pay these collections, and deal with his credit turning a little sour for some time, so that we don't have to run into the problem of unpaid collections again? Any idea how bad this will effect his credit- right now his avg is 650. We could go one other route and avoid the collections by going with a different lender, however the interest rate would be extremely high (8.5%)- and that doesnt make much sense to me either. I believe we can ask in our settlement with the collection agenies to "remove it from the report". We should demand and insist on this, correct? Any other advice is truly appreciated! Thank you!! Link to comment Share on other sites More sharing options...
firstsource Posted April 5, 2007 Report Share Posted April 5, 2007 My suggestion would be to go with the lower interest rate and pay the collections. Be sure to pay at closing-not before-but have the agreements from the collection agencies or creditors in writing and send them to the loan officer so they can be forwarded to the lender/investor/bank. Chances are the higher rate loan will have a prepayment penalty and if you can have a loan with out that feature you are much better off. FannieMae/FreddieMac loans don't normally have prepayment penalties.Charles Link to comment Share on other sites More sharing options...
Fishbait Posted April 5, 2007 Report Share Posted April 5, 2007 I have lots of ?'s. I rec'd a letter from a law firm stating they represent Midland Funding LLc as successor in interest to FCB for $917.37. I called them and they told me it was for a credit card back in 2001. I don't recall having that card. They said it was charged off in 2002. I did file a bankrupcy around that time and if I did have this card I am sure it was included in the bankrupcy, but I can't find my documents. I asked this company to provide me with a letter stating what the money they say i owe for is, how they calculated it, identify the orignal creditor and copies of papers showing i agreed to pay what they said i owe.I rec'd a response back from them stating the amt of the debt, name of creditor, name of orignal creditor, orignal acc number, date the account was open and the date of the charge off. They also send a copy of an unreadable terms and conditions page from FCB but nothing with my signature. help what can i do? I don't really think i owe this:cry: Link to comment Share on other sites More sharing options...
firstsource Posted April 5, 2007 Report Share Posted April 5, 2007 I think that the people on the credit repair portion of this site would be able to help you better. Just copy your post and re-post it to http://www.debt-consolidation-credit-repair-service.com/forums/forumdisplay.php?f=173Charles Link to comment Share on other sites More sharing options...
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