kcnjamie

HELP! Must clear collections for Mortgage finalization!!!

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Hi Everyone!

I received a pre-approval for a mortgage (YAY!) BUT I have to clear up some credit report items before the loan is finalized. The items we have to clear up are 3 charge-offs that show from OC's and a collection from Midland Funding. The mortgage is a VA Loan and this type of loan requires that the 4 debts  be paid with a proof of payment from the creditor.

More than likely all 4 debts SOL has passed, but I don't have the time to do any of the preferred credit repair steps when dealing with debt that SOL has passed.  I need to be able to provide something to lender showing the debt doesn't exist or is paid as soon as possible.

So after doing real quick research on what options are available, I was thinking the quickest and simplest way to get this taken care of is to contact the OC's and offer to settle and request a letter that debt is paid in full. 

So my questions are:

1) Have I missed other options I can pursue?

2) If I do settle and make a payment, will that restart the clock?

3) What is a reasonable percentage to offer for settlement? All of the debt is old and would have fallen off in the next year or so. (YES, bad planning on my part!)

Thanks in advance!

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