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$10K Med Coll Bill (2004), but 700 Fico - Problems Obtaining FHA Mortgage? DFW Area

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RobSteal
Valued Member

Re: $10K Med Coll Bill (2004), but 700 Fico - Problems Obtaining FHA Mortgage? DFW Area


@DallasLoanGuy wrote:

apply.

 

see what the lender says,

 

i always suggest people pay collections AFTER they close if they are allowed.

 

you are past statute of limitations i think.... so should be ok

 

underwriter discretion as usual

 


Do you mean that if my SOL is up, there is a better chance I would not be forced to pay the bill off with mortgage companies? I definitley would rather just wait for it to fall off after a year or so than pay it off. 

 

On a side note, I'm new to these forums and noticed your sig. Are you a broker here in the DFW area? Any suggestions on reputable lenders here in the DFW area? I've just started the process for my first home.

 

Message 11 of 14
Anonymous
Not applicable

Re: $10K Med Coll Bill (2004), but 700 Fico - Problems Obtaining FHA Mortgage? DFW Area

there is a higher chance they will let it slide if SOL is past, but a 10K debt that you are refusing to pay is also an issue to them no matter SOL.  An underwriter sees a 10K debt that you are not paying and are ignoring as a sign that if times are tough, or if it is convenient to you, you will walk away from an obligation you owe.  Unless you have a good explanation while it has not been paid that at the same time would not hinder your ability to pay a new mortgage (kind of a catch 22), this will concern them.  Myabe enough to make you pay it, maybe not...  It just depends on the file as a whole, and the lender/uw.

 

 

Message 12 of 14
happy0510
Established Contributor

Re: $10K Med Coll Bill (2004), but 700 Fico - Problems Obtaining FHA Mortgage? DFW Area

My 2 Cents Rob is that this is a medical debt and there is no large debt more understandable than this.  I would apply. Worse case scenario they make you pay it (which I highly doubt it would be the full amount) and you would have to reapply at a later time. Let us know what happens. Good Luck!


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Message 13 of 14
llecs
Moderator Emeritus

Re: $10K Med Coll Bill (2004), but 700 Fico - Problems Obtaining FHA Mortgage? DFW Area


RobSteal wrote:

Thank-you for the info. According to the Experian credit report, the $10K medical bill first went into collections on 7/2005. I should be good on the SOL in TX, which is 4 years. I should be good They cannot pursue litigation at this point, correct? Also, according to Experian, the collection is set to come off on July 2011, about a year and a half.  I think I'll wait out.

 

With that in mind as well, do you think I will be in better shape with the mortgage companies since the SOl is up?

 

I also initiated the opt outs with the credit bureaus. Thanks for the heads up on that.

 

I just hope this medical bill doesn't become a giant roadblock in purchasing my first home. Is there anything else I should know or do as well? 


If SOL in TX is 4 yrs, and that expired, then you should be OK. I don't know about TX, but some states allow for SOL to be reset if a payment was made after DOFD or if you admit to the debt anytime after DOFD, so keep an eye on that.

 

It is a YMMV situation as to whether or not it'll be an issue. Every lender has their own requirements.

 

 

Message 14 of 14
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