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@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.
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.
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!
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.