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DHI Home Buyers Club

New Contributor

DHI Home Buyers Club

My husband and I applied for a DHI Mortgage. We were referred over to the HBC. We got our credit plan and we only have to take care of 3 collection accounts. I paid two of them today because they were small balances. The last one is $853 from Verizon Wireless. The credit consultant said we need to do a pay for deletion but we have to do the full amount. We can't settle for less or it will negatively affect our credit. All the things I have read on the forums say the opposite. I'm just wondering if anyone has any advice. I have the funds to pay for the $853 but that will cut into our down payment funds. Thank you in advance.
myfico scores 12/04/15 rebuilding since 5/2015
TU:624- started at 512
EQ:610- started at 526
EX:616- started at 502
4 REPLIES
Frequent Contributor

Re: DHI Home Buyers Club

Settling the debt will not negatively affect your credit. Having the collection on your credit was the negative effect. If the collection is still reporting as opened and updating on your report every month, it's best to take care of it because it will hold down your scores until it's addressed. 

 

Settling the debt will get the creditor to report the account as closed, and you will stop action on the creditor's part in trying to get money from you. The balance owed should update to $0 with the remark "paid in full for less than balanced owed" OR "settled in full". 

 

Asking the creditor to delete the collection usually requires a full payment of the debt. Deletion from your credit will have it show that this collection nor the account ever existed, which is why creditors typically won't settle with you for something like this. 

 

When did the Verizon collection happen? Depending on how old it is, you may be able to call the credit bureaus and request an early exclusion. 

FICO8 Scores - 625TU / 640EQ / 649EX
On Mortgage Journey
Starting Mortgage Scores (Feb 17) 523EQ / 547TU / 564EX
Mortgage Scores Aug 17 624EQ / 649TU / 650 EX
New Contributor

Re: DHI Home Buyers Club

It happened in October of 2014. I have another question that maybe you can help me with? We called the number listed on the credit report to pay in full as long as they delete it. It was a number to Verizon. When my husband called the lady he spoke to said it is now with Jefferson Capital Systems. My husband, myself and the credit consultant with HBC are now concerned that it's going to start reporting under Jefferson which would drop his score a lot. Do you think it's just reporting wrong on the credit reports? We are so close to getting this mortgage.
myfico scores 12/04/15 rebuilding since 5/2015
TU:624- started at 512
EQ:610- started at 526
EX:616- started at 502
Frequent Contributor

Re: DHI Home Buyers Club

Early exclusion would not work for you then if it happened in October 2014. 

 

If it's with another collection agency there's only a matter of time before they start reporting. If that is the case, I would pay in full and ask Jefferson Capital not to report. Your HBC consultant is right, if they report, it would drop his score because it would present itself as a new collection. 

 

It would also be helpful if you type Jefferson Capital in the search boards of the forums. You can see if others had issues with them and how they handled it. 

FICO8 Scores - 625TU / 640EQ / 649EX
On Mortgage Journey
Starting Mortgage Scores (Feb 17) 523EQ / 547TU / 564EX
Mortgage Scores Aug 17 624EQ / 649TU / 650 EX
New Contributor

Re: DHI Home Buyers Club

So we called Jefferson Capital and my husband entered his SSN and they said his account was not being handled by their office so he called Verizon back and his account was then. It was very strange. He has another Jefferson Capital collection on his account as well. (We were young and dumb) We told our HBC consultant and she said we should dispute the other Jefferson Capital collection on his report.
myfico scores 12/04/15 rebuilding since 5/2015
TU:624- started at 512
EQ:610- started at 526
EX:616- started at 502