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Posts: 1
Registered: ‎07-20-2012

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: 1,979
Registered: ‎04-07-2009

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 815 5/28/2012, 818 on 7/28/2014 . Average of Accounts 12 years and no Installment accounts. MyFICO TU 810 6/26/2012 809 4/21/2013 MyFICO XPN -805. 2/26/2014 Discover TU FICO 813 App free since 9/2011
Senior Contributor
Posts: 3,889
Registered: ‎05-24-2011

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.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Posts: 99
Registered: ‎05-30-2012

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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