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FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13)

Valued Member

Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13

lenders arent concerned with statute of limitations. lenders are concerned with 'willingness to pay'

 


 

Ok, question: I have one collections account (library) from a situation in which someone ELSE took $243 worth of books from the library on MY account and then never returned them. Ironically, a month later I lost my wallet and called the library to cancel my card and they told me that my card had EXPIRED 2 months earlier.

 

Six months after that, I got a letter in the mail from a debt collector... I couldn't afford to pay them off, and got slammed with the collections account on my credit report.

 

Now three years later, I am financially able to pay off the debt, though I have no incentive to since collections won't work with me on a PFD and the library wouldn't work with me, either.

 

So I guess you could say, I am stubborn about paying this thing off, as a matter of principal. Is this hurting my chance at a mortgage this fall?

Message 31 of 64
Member

Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13

I know this may be a silly question. But does "medical" collections include collections from dentists? Thank you for your help!!! 

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Message 32 of 64
Member

Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13

Please advise if the HUD FHA Letter applies to Fannie Mae mortgage applications as well.  I am applying presently for a conventional loan. I have 3 accounts I disputed in 2011. All are zero balance accounts. Two disputes were a request to check balances. One was a dispute that an account was paid off in 2008 after sent to collection (Verizon). Lender made me sign generic letter that I did not dispute the item any longer. My credsit scores dropped. Lender then claimed I don't qualify for same rate on PMI and incentive offered for the loan. The scenario is worse but I don't want to abuse you or anyone else by asking the question.  Just a note - when I applied for the loan by scores were 729, 720, and 720. (after the disputes were removed on the zero balance accounts my scores are 722, 702 and 695) Thanks

Message 33 of 64
Super Contributor

Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13


Dstangel11 wrote:

I know this may be a silly question. But does "medical" collections include collections from dentists? Thank you for your help!!! 


Yes, a dentist bill would count as medical.

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Message 34 of 64
Super Contributor

Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13


dab54321 wrote:

Please advise if the HUD FHA Letter applies to Fannie Mae mortgage applications as well.  I am applying presently for a conventional loan. I have 3 accounts I disputed in 2011. All are zero balance accounts. Two disputes were a request to check balances. One was a dispute that an account was paid off in 2008 after sent to collection (Verizon). Lender made me sign generic letter that I did not dispute the item any longer. My credsit scores dropped. Lender then claimed I don't qualify for same rate on PMI and incentive offered for the loan. The scenario is worse but I don't want to abuse you or anyone else by asking the question.  Just a note - when I applied for the loan by scores were 729, 720, and 720. (after the disputes were removed on the zero balance accounts my scores are 722, 702 and 695) Thanks


No, FHA only.

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Message 35 of 64
Established Member

Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13

I know this is an old thread but i figured it made more sense to reply to it then starting a new one. 

 

The last CA on my CR is from a charge-off in 2009. It's now an unpaid collection with Midland Financial. My prospective FHA LO mentioned setting up a payment plan with them. I've had very bad experiences in the past so i really don't want to deal with them (fought with them for 1.5 years over an account they continued to try and collect on after it was paid in full to the OC). Anyway, because of this and the fact that it is due to fall off my CR next year (i also don't want to risk reaging the SOL) i'd rather just have the 5% of the total ($160/mo) added to my DTI. My DTI in a few weeks will be about 3% (29% with estimated loan) once i eliminate some CC payments so i can afford to take the hit. I realize the lender has the final call, but is this situation something that the lender would likely fight me on?    

Message 36 of 64
Super Contributor

Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13


sjsoto wrote:

I know this is an old thread but i figured it made more sense to reply to it then starting a new one. 

 

The last CA on my CR is from a charge-off in 2009. It's now an unpaid collection with Midland Financial. My prospective FHA LO mentioned setting up a payment plan with them. I've had very bad experiences in the past so i really don't want to deal with them (fought with them for 1.5 years over an account they continued to try and collect on after it was paid in full to the OC). Anyway, because of this and the fact that it is due to fall off my CR next year (i also don't want to risk reaging the SOL) i'd rather just have the 5% of the total ($160/mo) added to my DTI. My DTI in a few weeks will be about 3% (29% with estimated loan) once i eliminate some CC payments so i can afford to take the hit. I realize the lender has the final call, but is this situation something that the lender would likely fight me on?    


why do they want you to do a pmt plan?

 

 

Retired Lender
Message 37 of 64
Established Member

Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13


DallasLoanGuy wrote:

sjsoto wrote:

I know this is an old thread but i figured it made more sense to reply to it then starting a new one. 

 

The last CA on my CR is from a charge-off in 2009. It's now an unpaid collection with Midland Financial. My prospective FHA LO mentioned setting up a payment plan with them. I've had very bad experiences in the past so i really don't want to deal with them (fought with them for 1.5 years over an account they continued to try and collect on after it was paid in full to the OC). Anyway, because of this and the fact that it is due to fall off my CR next year (i also don't want to risk reaging the SOL) i'd rather just have the 5% of the total ($160/mo) added to my DTI. My DTI in a few weeks will be about 3% (29% with estimated loan) once i eliminate some CC payments so i can afford to take the hit. I realize the lender has the final call, but is this situation something that the lender would likely fight me on?    


why do they want you to do a pmt plan?

 

 


That was something she mentioned in the preapproval meeting. She said she would verify all of this me once the contract on the new contstruction is signed. I've signed the contract but the builder hasn't. Long story, lots of delays because it's a new subdivision and new county requirements before building can begin...I'm just trying to stay ahead of the game and see what my options are. This initial meeting was almost 2 months ago and since then i've had some small CA's deleted from my CR. Maybe, the payment plan won't be necessary once my scores improve. mid-score is currently 625

Message 38 of 64
New Member

Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13

I know this is an older thread, but just wondering if anyone thinks FHA would make an exception for a judgment that has been included in a successfully completed and discharched chapter 13 case?
Message 39 of 64
New Visitor

Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13


angelinaballerina wrote:
I know this is an older thread, but just wondering if anyone thinks FHA would make an exception for a judgment that has been included in a successfully completed and discharched chapter 13 case?

Did you ever get this straigntened out?  I'm in a very similar situation.

Message 40 of 64