Credit Card Center Advertiser Disclosure†

Mortgage Loans

turn on suggestions Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for 
Search instead for 
Do you mean 
Reply
Topic Options
Member
mackandblues
Posts: 6
Registered: ‎07-26-2012
0 Kudos

Collection from a hospital
Options

‎07-26-2012 01:41 PM

My goal is to purchase a home in about a year after I increase my credit score from 554.  However I've been reading that you need to have closed collection accounts inorder to be approved for a loan.  I have a collection of $10k from a hospital, do I need to pay that off before pursuing a mortage?  Thanks in advance

Message 1 of 5 (475 Views)
 
Super Contributor
pizzadude
Posts: 9,668
Registered: ‎01-28-2010
0 Kudos

Re: Collection from a hospital
Options

‎07-26-2012 01:45 PM

mackandblues wrote:

My goal is to purchase a home in about a year after I increase my credit score from 554.  However I've been reading that you need to have closed collection accounts inorder to be approved for a loan.  I have a collection of $10k from a hospital, do I need to pay that off before pursuing a mortage?  Thanks in advance

You'll very likely have to pay the collection as a condition of being approved, unless the collection doesn't belong to you.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 5 (471 Views)
 
Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0 Kudos

Re: Collection from a hospital
Options

‎07-26-2012 05:12 PM

Because that collection is so large, and because it could turn ito a judgment and you could be sued ( and then the judgment would be on your house ) - no lender will approve you as they need to be in "first position" if you default on the house payments.

There are way to deal with medical collections - arranging to pay a percentage, "PFD" which means Pay for Delete, or you can google "HIPAA MEDICAL COLLECTIONS" which explains a process to go about removal, though it requires payment.

Good Luck.
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
Message 3 of 5 (446 Views)
 
Super Contributor
DallasLoanGuy
Posts: 7,915
Registered: ‎07-03-2007
0 Kudos

Re: Collection from a hospital
Options

‎07-26-2012 06:11 PM

pizzadude wrote:
mackandblues wrote:

My goal is to purchase a home in about a year after I increase my credit score from 554.  However I've been reading that you need to have closed collection accounts inorder to be approved for a loan.  I have a collection of $10k from a hospital, do I need to pay that off before pursuing a mortage?  Thanks in advance

You'll very likely have to pay the collection as a condition of being approved, unless the collection doesn't belong to you.

 

 

wrong

 

 

* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' (and now Louisiana)since 2004

* The Loan Officer who you can call anytime... and answers your questions Nights & Weekends

Message 4 of 5 (437 Views)
 
Super Contributor
DallasLoanGuy
Posts: 7,915
Registered: ‎07-03-2007
0 Kudos

Re: Collection from a hospital
Options

‎07-26-2012 06:12 PM

how old is the medical collection?

 

i have seen files close with large collections.

 

 

* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' (and now Louisiana)since 2004

* The Loan Officer who you can call anytime... and answers your questions Nights & Weekends

Message 5 of 5 (435 Views)
 
POPULAR LINKS
Credit scores | Credit reports | myFICO Blog | Affiliates

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.