Mortgage Loans

[playedout]

I'm so mad!  I applied for a USDA direct loan a couple weeks ago - I checked my credit and everything looked good.  I got a copy of my credit report back from the USDA and now I have a collection showing up that was just reported this month from a charge back last year in 2011.  I only owe $117 and can immediately pay it off, but is it even worth going through the process now or am I pretty much screwed?

Edit:  My mid score is 675, so hopefully this will help me?

[playedout]

Anyone?

[llecs]

I'd take steps now to remove it via a PFD letter to the CA.

The damage varies per report. Obviously paying it won't help you any, but a new paid or unpaid collection reporting can ding your score by quite a bit. I'd certainly pull EQ on here if reporting to at least have an idea. Your lender would be using the same version.

[germaine47]

Did they say if you are pre-approved?   I went USDA Guaranteed so the MB went over my CRA reports personally.  Call the Department personally yourself and see what needs to be done. 

[sophmore]

I went USDA Direct and right before I applied I had a collection show up on my report.  It was also under $150.  I could have disputed it because the CA was illegally reporting but my scores were all over 660.  So, I decided to ride it out and see what happened.  It was never an issue because of my scores.  I applied at the end of February and closed mid-July.  By the way I just had the collection removed off of my reports last week. 

Your local field office where you applied should be able to tell you if it is a problem though.  I would check with them to make sure.  I have noticed that different field offices interpret things in different ways. 

[playedout]

Thanks for the information everyone...I sent in a PFD to the CA so I'll see what happens.  I haven't heard anything from the USDA office about it yet.  I'll give them a call tomorrow and see what they say, hopefully it won't be a problem.

[playedout]

I contacted the USDA today regarding my status - the collection seemed to be a non-issue.

It may not be that big of a deal after all.

[Shogun]

Let's hope not.  You did opt out right?

[playedout]

I didn't before I applied, but now I have.  

[playedout]

Well the good news is the CA mailed me a reply that they would remove the collection from my credit report if I pay them.

The bad news is they want me to pay them by tomorrow, which is funny since I only got the letter in the mail yesteday.

Unless they take a credit card over the phone I'm not sure how that would even be possible.  It's almost like the purposly put a early date on it knowing it's nearly impossible to pay them on time.

What a joke.