Credit scores dropped below 700 as we are about to close on a Jumbo mortgage

[Anonymous]

Dear all,

We are first time apartment buyers as we are buying an coop apartment. We expected board approval shortly and then we are close the mortgage. But I have signed up for credit alerts (got 2 alerts last night) and it seems one ER medical bill slipped through (I had mutiple ER bills from same provider which were paid in full and I may have confused them for being paid and dont recall a notice from collection agency) for $50. This $50 collection status with not paid brought 2 of my credits scores to 673 and 695 from 700+ while the 3rd still holds up to 700 (but it doesnt have the collection report on it yet).

We were pre-approved and also have commitment letter and now we are really worried that bank may deny mortgage and we will lose our $110,000 deposit (based on my understanding of contract). It is completely crazy that we can lose $110,000 over a $50 unpaid medical bill for which no one even called.

I am planning to do the following -

1. Call the collection agency first thing tomorrow and paid it off/get receipt and request them to do a rapid reage which I suspect they won't (I will explain them the situation).

2. Do you recommend calling my lawyer or should I call my lender and tell them about the issue as they already ran 2 credit checks (1st during pre-approval and then during commitment letter stage and we expect to close before the expiration of credit check (Mid August/every 120 days).  Do you think the lender can rapid reage the credit? Or Should I keep quiet and hope lender would not run another credit check? 

Or do you think it is a lost cause?

Thank you for any advice as we are really stressed.

Thank you,

[notfancy]

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@Anonymous wrote:

Dear all,

We are first time apartment buyers as we are buying an coop apartment. We expected board approval shortly and then we are close the mortgage. But I have signed up for credit alerts (got 2 alerts last night) and it seems one ER medical bill slipped through (I had mutiple ER bills from same provider which were paid in full and I may have confused them for being paid and dont recall a notice from collection agency) for $50. This $50 collection status with not paid brought 2 of my credits scores to 673 and 695 from 700+ while the 3rd still holds up to 700 (but it doesnt have the collection report on it yet).

We were pre-approved and also have commitment letter and now we are really worried that bank may deny mortgage and we will lose our $110,000 deposit (based on my understanding of contract). It is completely crazy that we can lose $110,000 over a $50 unpaid medical bill for which no one even called.

I am planning to do the following -

1. Call the collection agency first thing tomorrow and paid it off/get receipt and request them to do a rapid reage which I suspect they won't (I will explain them the situation).

2. Do you recommend calling my lawyer or should I call my lender and tell them about the issue as they already ran 2 credit checks (1st during pre-approval and then during commitment letter stage and we expect to close before the expiration of credit check (Mid August/every 120 days).  Do you think the lender can rapid reage the credit? Or Should I keep quiet and hope lender would not run another credit check? 

Or do you think it is a lost cause?

Thank you for any advice as we are really stressed.

Thank you,

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Don't call the CA, call the hospital directly and tell them the truth. This somehow slipped through, and if they could please be kind enough to work with you, you'll pay them immediately for their agreement to recall it from collections and get it deleted from your credit report. Most medical collections will work with you and are VERY kind and nice to work with. I've personally done this twice, with separate medical things and they were wonderful. Like you, it was something that slipped through the cracks and they understood.

[Anonymous]

Thanks, I will try that but do you think there is enough time to removef it from the report as we have to close in 10-12 days.

[songsofexperience]

Ask them to send/fax a recipt/statement of payment. See if they'll include a statement that  it was pulled back from CA, paid in full, and will be deleted from your CR. You may need to confirm the the CA that it's been pulled and paid. You may want to send that to all three CRAs (your lender can advise how best to handle). You can get a rapid rescore once you're sure it has been removed.

Good luck!

[notfancy]

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@Anonymous wrote:

Thanks, I will try that but do you think there is enough time to removef it from the report as we have to close in 10-12 days.

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I'm sorry I don't know , but it shouldn't take that long at all

[TheGardner]

Can also try a PFD with the CA. In your situation they may have a heart and comply. Some do in situations with less on the line.