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FICOisa4letterword
Posts: 71
Registered: ‎02-26-2012
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$0 balance on really old Providian CO - what will FHA require?

My husband and I are planning on applying for an FHA preapproval in late April. We have been concerned that we will incur more costs at closing than originally planned due to FHA's new rule requiring applicants to pay off any/all collections if the total of all collections is greater than $1000. Information that I previously read about this indicated that this included charge-off accounts. To say the least, this was bad news because I have an old CO CC on my report that dates back to Providian Bank in the 2005 to 2007 era. While this shows as a $0 balance on my report, the CO amount was probably in excess of $2,500-$3,000. Tonight, however; I found two articles posted online this that state that COs with zero dollar balances will NOT have to be paid. This is according to a phone call placed directly from the authoring lender to HUD. http://www.zimbio.com/mortgage+industry/articles/jaBuG7Y0FE1/FHA+new+rules+requires+collection+debts... Can anyone confirm or deny? Thanks!
New Contributor
FICOisa4letterword
Posts: 71
Registered: ‎02-26-2012
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Bump: question for Shane re: $0 balance on really old Providian

 
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fused
Posts: 16,373
Registered: ‎03-12-2007
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Re: Bump: question for Shane re: $0 balance on really old Providian

FICOisa4letterword:

 

I noticed you seem to be having some trouble posting. It is possible to edit your own post if you have posted an incomplete message. To edit your post, go to the post. To the right you'll see "Options." Click on "Options" and select "Edit Message" from the drop-down menu.  If you have accidentally posted a duplicate message, you can use the “Report Abuse to a Moderator” link to asking the moderation team to remove one for you. To find this link, go to the duplicate post, click on "Options," then select "Report Abuse to a Moderator" from the drop-down menu. If you need any help with anything, let me know.  Thanks for your contribution to the FICO Forums!

 

--fused, myfico moderator

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