To pay off collections or to not

[Anonymous]

The mortgage specialist I’ve been talking to says it’s best to have all accounts in collections settled or paid in full, even if they don’t delete them, when applying for a home. I’ve read a lot of things saying this can damage my credit because of how old they are. I’m confused and not sure what to do here 😫 by the way these are medical bills about 3-4 years old

[OmarR]

The more knowledgeable posters here will most likely be asking you for the following:

1. Please list your accounts that went to collections.

2. The date that each of them went to collections (usually 90+ days after your last payment to the original creditor).

3. Have you made ANY payments on the accounts AFTER they went to collections?

4. What state are you in?

[Anonymous]

I am in Maryland. I have collections that are ultrasounds from when I was pregnant. They are 4 years old with no payments made. I also have an urgent care bill from 2 years ago that no payments have been made.

[RobertEG]

Underwriting requirements for different types of loans, and with different creditors even with the same type of loan, vary greatly with respect to whether or not different types of delinquent debt require payment as a condition of approval.

Some, for example, may not require payment of medical collections.

If the mortgage specialist is offering opinions based on the specific type of loan and the underwrting requirements of that lendor for that loan, then the next issue is whether you intend to use that loan/lendor, or shop around for another.

You can often tailor your loan process to your own history, or tailor your payment decisions based on who you decide to app with.