SecretAgentWoman Posted April 17, 2007 Report Share Posted April 17, 2007 Just curious. I have one that may not be deleted, it doesn't expire until 2011, and I'm not gonna pay if they don't agree to delete.I was wondering even if it's disputed, with a mortgage company require it paid before loaning? It will be out of SOL by then. Link to comment Share on other sites More sharing options...
JessFolk Posted April 17, 2007 Report Share Posted April 17, 2007 Wouldnt you wanna just try to dispute it off before going for a house then? I wouldnt pay it either:-) Link to comment Share on other sites More sharing options...
pinkeysas Posted April 17, 2007 Report Share Posted April 17, 2007 Im in the same situation right now. From what i've been told by informed mortgage people on this site it sounds like it depends on how much the amount is for. If that is the only thing looming over you I would think it could be over looked. Of course all lenders have different requirements. Some will work with you and others will not.Also, I have been told that some lenders will agree to pay it off for you at your closing. Although then you lose your PFD leverage.I am going to sit down with a lender tonight so hopefully I'll have some better answers to this question for you tomorrow. Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted April 17, 2007 Author Report Share Posted April 17, 2007 Wouldnt you wanna just try to dispute it off before going for a house then? I wouldnt pay it either:-)Oh I've disputed, sent nutcase letters, called several times, offered pay for delete until I'm blue in the face, but since it's still in the SOL, I think they think they can scare me into paying. They said they could sue, I said go ahead. It's only $244, and you can't use small claims in Texas, it would cost them more to sue then they could collect.I've come to terms it may stay until 2011, no problem. But I wondered if the mortgage company would be understanding. Link to comment Share on other sites More sharing options...
buckeyechick1219 Posted April 17, 2007 Report Share Posted April 17, 2007 It depends on the company and any program you may get into. My friend just bought a house and had to pay off all delinquent debt, and part of their good debt (to lower their debt to income ratio) before getting approved. The program we got in allowed us $5000 or less of negative debt, so I only had to pay the judgement against me to get approved.ETA: I do still have multiple collections against me, and at the time my CR were pulled, they totalled probably $3000. Link to comment Share on other sites More sharing options...
firstsource Posted April 17, 2007 Report Share Posted April 17, 2007 It just depends on the loan program. Many will not make you pay off collections as long as they total less than 5,000.You will pay a slightly higher interest rate but will be able to get a loan. Charles Link to comment Share on other sites More sharing options...
ybrew Posted April 17, 2007 Report Share Posted April 17, 2007 I had one unpaid collection when I got my VA loan. It was old, past SOL and the lender didn't bat an eye at it. Link to comment Share on other sites More sharing options...
melisadawn Posted April 17, 2007 Report Share Posted April 17, 2007 We went FHA had medical collections less then year old. Forget the amount but under 600$ Had to be paid in full before closing Link to comment Share on other sites More sharing options...
tme1 Posted April 19, 2007 Report Share Posted April 19, 2007 since it's still in the SOL, I think they think they can scare me into paying....... It's only $244 Why not just pay it if it is such a small amount? Once it is paid, you can dispute it within a couple of months. The CA's dump the records once payment is recieved.You want a house but you are not willing to pay existing debt that is minor? The idea of credit repair is to get back on track, not keep running from what we owe! Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted April 19, 2007 Author Report Share Posted April 19, 2007 I don't think you've read this site very thoroughly.If I pay NOW, with no agreement to delete, I may reset the 7 year clock and they can stay on my report for LONGER. YOU NEVER PAY A COLLECTION AGENCY WITHOUT AN AGREEMENT FOR DELETE. Period. End of story.It's not the money, it is what they CAN and WILL do to my report.I don't know where you got the idea that they will "dump the record" in a few months and you can dispute. That is a falsehood. I have one paid collection (paid OC before I knew it had been sent to collections) that is 4 years old that ain't getting deleted despite numerous letters, disputes, and even a goodwill letter to the CEO. Link to comment Share on other sites More sharing options...
lyle7289 Posted April 19, 2007 Report Share Posted April 19, 2007 Why not just pay it if it is such a small amount? Once it is paid, you can dispute it within a couple of months. The CA's dump the records once payment is recieved.Don't bet on it!! I have 5 paid medical collections all for under $100 each that are still on my report 5 years later!! They verify every time I dispute!! Link to comment Share on other sites More sharing options...
tme1 Posted April 19, 2007 Report Share Posted April 19, 2007 No Falsehood just Facts...Not trying to argue with you but I am speaking out of experience. I have raised my score by over 100 points in the last 90 days so I know that it definately works regardless of what this board says. If you read all the threads in detail, there are times that you have to make a call that is specific to your situation.Paying it off will not reset it, it will only show up as paid which, is true, its not much better than being delinquent HOWEVER....you want to build trust with new creditors especially for buying a home.Keep reading, not everything on this board is set in stone. Link to comment Share on other sites More sharing options...
hopen4800 Posted April 19, 2007 Report Share Posted April 19, 2007 "Trust" in a financial context is reduced to a mathematical formula. No right or wrong, just numbers. The glitzy ads that portray human sensitivities are fluff (The droopy-eyed father figure says Countrywide Can, etc). When we meet the mathematical thresholds we get stuff. When we don't we get nothin'. We come to this site to learn the weakness and vulnerabilities of the flawed (are there 2 "W's" in flawwed?, no just 1,I think) formula and to sometimes laugh a little, certainly to get carried along by one anothers successes and experiences. We also come here to know the laws and the weaknesses therein. Anyway I can hear the soapbox creaking under the enormous weight of my ego. Anyway I love the spirited exchanges!-A lurker with occasional bouts of verbal diarrhea, Peace Link to comment Share on other sites More sharing options...
Ahntara Posted April 20, 2007 Report Share Posted April 20, 2007 "...If I pay NOW...I may reset the 7 year clock..."Paying a defaulted debt should NOT reset the Reporting Period. Such a thing would make a tidy little lawsuit for violating the FCRA. It IS possible, but not likely, since the last update (FACTA 2003).Paying DOES cause the TL to get updated. The new 'Date Last Reported' on a defaulted account is what lowers your score by making the TL appear recent to the scoring software. This is easily overcome during the home buying process by offering to pay at closing (after all your CR's have been pulled in conjunction with the loan). Link to comment Share on other sites More sharing options...
amortgageman Posted April 20, 2007 Report Share Posted April 20, 2007 Posted by TME1:Why not just pay it if it is such a small amount? Once it is paid, you can dispute it within a couple of months. The CA's dump the records once payment is recieved.You want a house but you are not willing to pay existing debt that is minor? The idea of credit repair is to get back on track, not keep running from what we owe!Posted bysecretagentwoman:I don't think you've read this site very thoroughly.If I pay NOW, with no agreement to delete, I may reset the 7 year clock and they can stay on my report for LONGER. YOU NEVER PAY A COLLECTION AGENCY WITHOUT AN AGREEMENT FOR DELETE. Period. End of story.It's not the money, it is what they CAN and WILL do to my report.You are both right!!!!Secretagent woman, I guess you can take a higher interest rate and refinance for a few thousand dollars, later on, once your debt falls off or gets deleted.You are in the mortgage forum now, and you may fill out an application. On this application, you will state that you owe no other debts, other than what you have listed on the application. Suppose you do finally get a delete, it does not matter, if you still owe the debt. Lying on a mortgage application is fraud. Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted April 20, 2007 Author Report Share Posted April 20, 2007 Wow, I didn't know my personal integrity would be called into question on this board when I asked a question.If it's out of SOL, then legally, yes, I can say I don't owe any debts.And for your information, this all devolved out of a legitimate dispute with Sprint PCS over the contract and the terms therein, thus why it wasn't paid in the first place. I have no other unpaid items that will be listed on my report but this one at the time, I've been debt-free and budgeted well for almost 4 years now, so I really wish the deadbeat and fraud accusations can be left on the forums for all the perfect people who pay every debt, legitimate or not, and can stand tall on their soapbox above the rest of us. Link to comment Share on other sites More sharing options...
jq26 Posted April 20, 2007 Report Share Posted April 20, 2007 ...this all devolved out of a legitimate dispute with Sprint PCS over the contract and the terms therein, thus why it wasn't paid in the first place.OT comment, but I'm not surprised. Sprint PCS had sent me back to back $600 cellphone bills in error. I wrote a three page letter to the customer dispute center as I was instructed to do. They didn't even have the coutesy to acknowledge receipt of the letter. Then they placed my account into collection. Although I intended to pay it and continue with Sprint, I was about to BK anyway and just included the debt into the filing, then went with Verizon wireless. Link to comment Share on other sites More sharing options...
hopen4800 Posted April 20, 2007 Report Share Posted April 20, 2007 SecretAgentWoman, I didn't mean to assail your integrity in any way at all. I have valued your posts and from that standpoint you have been a lot of help to me. My ramblings were to imply to poster tme that most lenders aren't there to make "friends" with us. It's commissions based and can be very cutthroat. If you find a good broker, great.Regarding Sprint...they're IDIOTS. When we used them in our business we spent hours every month on the phone trying to get our bill right. We actually "settled" our bill every month, never resolved it. Their accounting and weird charges defied comprehension. They couldn't even figure it out , so every month it came down to "OK if you pay this much is that good?"(quoting CSR). This is all very new to me. That is, to ponder a question or make a comment and cast it out upon the sea of humanity and wonder what the response will be. For the most part it has revived some hope in my fellow passengers on this moist dirtball we live on, other times....well, not so much.It did seem to me that a shot was taken at you and in an obtuse way I tried to deflect it. Peace Link to comment Share on other sites More sharing options...
woody Posted April 21, 2007 Report Share Posted April 21, 2007 Hey im newer to this board but i work in the mortgage industy. FHA and VA do not requred collections to be payed unless they have to do with the goverment i.e. school loan some are government backed. also judgement and tax leins will have to be paid. also you will get a better rate with FHA your rate will be better than a A paper loan. 6 percent would be standard right now. Link to comment Share on other sites More sharing options...
amortgageman Posted April 21, 2007 Report Share Posted April 21, 2007 Wow, I didn't know my personal integrity would be called into question on this board when I asked a question.If it's out of SOL, then legally, yes, I can say I don't owe any debts.And for your information, this all devolved out of a legitimate dispute with Sprint PCS over the contract and the terms therein, thus why it wasn't paid in the first place. I have no other unpaid items that will be listed on my report but this one at the time, I've been debt-free and budgeted well for almost 4 years now, so I really wish the deadbeat and fraud accusations can be left on the forums for all the perfect people who pay every debt, legitimate or not, and can stand tall on their soapbox above the rest of us.Re read the entire thread.........NOWHERE do you mention that it is not a legitimate debt, and I am not going to search 500 some posts to try to find out your last baddie on your credit report. As a matter of fact, you state in your post, that you have some little piddly collection, that you refuse to pay. In my posts, and in Charles' post, we both stated that you may be subject to paying higher interest rates because of a small little collection. My statements regarding lying on a mortgage application still hold, because it is the law. Now that we know that it is a contested debt, that you may not owe, then a simple letter of explanation scan get you decent financing. Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted April 22, 2007 Author Report Share Posted April 22, 2007 I just think you need to watch your assumptions that everyone who refuses to pay a debt is automatically trying to get away with something, and is going to lie, etc.The ethical question of whether or not you should pay a junk debt buyer/collection agency has been gone over and over on this board. I am of the group that believes in paying the OC, not bottom feeders.See, I started the thread saying the mortgage company would know about it, so why would you a$$-u-me that I would lie and say it's not? My first post implies honesty on my part. I had a decision - to pay what I otherwise feel is an invalid debt to better my chances of a mortgage, or continue my dispute if it will not effect me too terribly.I have no problem with the posts that explain I may be subject to higher interest rates, I may have to agree to pay at closing, etc, because that is what I came here to know - the risks and my options. I didn't come here for this however:You want a house but you are not willing to pay existing debt that is minor? The idea of credit repair is to get back on track, not keep running from what we owe!Suppose you do finally get a delete, it does not matter, if you still owe the debt. Lying on a mortgage application is fraud. Link to comment Share on other sites More sharing options...
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