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Posts: 1
Registered: ‎07-20-2012
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Medical Debt and Mortgage Refinance

When attempting to refinance our mortgage, we learned that there is a medical bill that is appearing our credit report which has dropped our credit score from 720 to around 660.  The debit is from last year and should have been covered through our insurance.  Since it has been turned over to a collections agency it appears on our credit report.   


We are wondering what our options are at this time.  Our ultimate goal is to refinance at a preferred rate, but do so while rates are so low.  


Thanks in advance for your help.

Valued Contributor
Posts: 2,000
Registered: ‎04-07-2009
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Re: Medical Debt and Mortgage Refinance

[ Edited ]

Talk to the provider of the service. Offer to pay in full and see what they will do about the account in collections.

Equifax My FICO score 814 11/29/2016, Discover TU FICO 807 12/29/2016 Citibank Equifax Bankcard FICO score 827 12/27/2016 Average of Accounts 13 years and no Installment accounts, 1 TU inquiry in 2015
Senior Contributor
Posts: 3,889
Registered: ‎05-24-2011
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Re: Medical Debt and Mortgage Refinance

Dont pay unless they agree to delete it. It's called 'PFD - (Pay for delete) - you would work with the collection agency reporting to do this.

OR - go back to the medical provider and your health insurance company and see if they can fix it on their end - either way, you are going to have to pay it.

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Posts: 102
Registered: ‎05-30-2012
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Re: Medical Debt and Mortgage Refinance

If it should've been covered through your insurance, contact your insurance company and find out why they did not pay this bill.


If it turns out they should have, in fact, paid this bill, it's possible your insurance will go ahead & submit payment to the original creditor.


IF this happens: wait until you get confirmation from your insurance company that they have paid the original creditor.  Contact the original creditor to verify they've received payment, then ask them to have the account removed from the collection agency.


A lot of people will tell you this above scenario won't work, but, FOR ME, it did.


I'll also e-mail you add'l information regarding the HIPAA process for medical bills.  This process ONLY works if you pay the Original Credit, NOT the collection's agency.


Good luck!

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