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Valued Member
Posts: 125
Registered: ‎07-26-2015
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Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13

My experience is that Midland is not very flexible. Usually, the LO recommends paying one lump sum to do a PFD (pay for delete). Some places do this some don't. Midland will NOT do it for a payment plan. If you do call them to negotiate, I wouldn't mention you need to pay this off for a house because it puts you in a weaker position. Just say something like "It bothers me this is on there. I'll offer you 1% to detele it off my credit report." Go really, really low. Negotiate from there.

 

Now be careful -- because you don't want this to re-open the SOL. It's a tricky business. I'd research online to see who's had success with Midland on this.

 

If it doesn't impact underwriting and it doesn't impact your DTI --- I wouldn't think you'd even need to pay it.

Frequent Contributor
Posts: 395
Registered: ‎11-10-2015
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Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13

Super helpful, thank you!


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Registered: ‎11-12-2015
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Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13

Hello! I have found this sight very helpful. My husband and I have had horrible credit issues and we finally got it all together for the last two years and were so excited when we were preapproved and found our dream home. Then a month ago our account was swept for a twenty ear old judgment my husband thought was paid off to the state for a agriculture loan when he was a commercial fisherman. Friends and family shared in our sorrow so much that they gifted us the $16000 that they said was owed after they swept our account. So appreciated and grateful as soon as we recieved the money we took it to the state. The state in return told us us that the $16000 dollars that we paid plus the $3000 they swept from our account was really not enough because they have to wait for the court to give them the money and that will not be till around February and after that we will then owe $2000 in fees. We have no more places to get that $2000 and the state refuses to settle till they recieve the money from the court and the $2000 but they are willing to make an arraingment with my husband for signing over his Alaska PFD for  5 Years to suffice it. My question I guess is it possible to still have our loan approved we dont want to lose this house and we did truly try to fix it and we had no idea there was a problem. I read that you have to show three months of paying a judgement but in Alaska we only recieve a PFD once a year and that what the deal is not a monthly payment.

Established Member
Posts: 36
Registered: ‎10-30-2015

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

[ Edited ]

ShanetheMortgageMan wrote:

skinsfan83 wrote:

I wonder if the amount has something to do with her telling me to pay it? It's around $6,000. I'm thinking she didn't send it to underwriting because my mid score was only 629 and I have an unpaid judgment. I'm going to pay the judgment in the next few weeks. She also wanted me to pay down my CC which I will be able to do in a few weeks too. The charge off is scheduled to fall off in February so I was just going to hold off and wait until then but if I can get approved with the charge off I would like to start looking now.


Each lender may have their own underwriting overlays.  Per current FHA guidelines, there is no requirement to pay charge-offs or collections or have them entered into a payment plan.  Some lenders still require collections/charge-offs over a certain amount to be paid though, so it's always good to ask about the owing collection/charge-off policy during the initial conversations with your loan officer.


Im currently in escrow, but hit a snag with caivers, have a foreclosure 9/24/12 that is past the three years , sent a letter of supression to HUD on October 30.2015 got a reply back same day saying they sent it to Washington DC with a recomendation for a waiver because BofA delayed in services the loan. My lender said not much they can do without a clear caivrs, however I'm reading HUD doesnt require a clear CAIVRS to approve the loan, would this be a case for manually underwritting? We have a 780 credit score, no other isssues and 65% downpayment. I fear we would get the CAIVRS cleared before our closing date.

Established Member
Posts: 12
Registered: ‎03-24-2009
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Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13

Capacicty Analysis

 I have arranged to pay my collection of 6 years old with the debtor who is refusing to give me a letter of the arrangement. is it legal for them to do that?

Established Member
Posts: 10
Registered: ‎01-28-2016
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Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13

 
Frequent Contributor
Posts: 420
Registered: ‎02-14-2016
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Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13

 


ALASKA1 wrote:

Hello! I have found this sight very helpful. My husband and I have had horrible credit issues and we finally got it all together for the last two years and were so excited when we were preapproved and found our dream home. Then a month ago our account was swept for a twenty ear old judgment my husband thought was paid off to the state for a agriculture loan when he was a commercial fisherman. Friends and family shared in our sorrow so much that they gifted us the $16000 that they said was owed after they swept our account. So appreciated and grateful as soon as we recieved the money we took it to the state. The state in return told us us that the $16000 dollars that we paid plus the $3000 they swept from our account was really not enough because they have to wait for the court to give them the money and that will not be till around February and after that we will then owe $2000 in fees. We have no more places to get that $2000 and the state refuses to settle till they recieve the money from the court and the $2000 but they are willing to make an arraingment with my husband for signing over his Alaska PFD for  5 Years to suffice it. My question I guess is it possible to still have our loan approved we dont want to lose this house and we did truly try to fix it and we had no idea there was a problem. I read that you have to show three months of paying a judgement but in Alaska we only recieve a PFD once a year and that what the deal is not a monthly payment.


 

Alaska1 was this judgment on your report? I had a 600$ one that disspeared off my report and I wonder if it could come back. Can they find judgments that are not in your report?, if anyone else wants to chime in? thanks. If so are judgement eternal?


April 2015 490-510
March/2016 Equifax-636 TransUnion-632 Experian-639
April/2016 Equifax-695 TransUnion- Experian-663
Mortgage Scores:Feb/2016 Equifax-Fico5 591 TransUnion-Fico4 625 Experian-FIco2 569
Goal Score:across the board 725+


Moderator
Posts: 10,243
Registered: ‎03-06-2010
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Re: FHA changing collection account, judgments & disputed account guidelines (effective 10/15/13


mynewcredit wrote:

 


ALASKA1 wrote:

Hello! I have found this sight very helpful. My husband and I have had horrible credit issues and we finally got it all together for the last two years and were so excited when we were preapproved and found our dream home. Then a month ago our account was swept for a twenty ear old judgment my husband thought was paid off to the state for a agriculture loan when he was a commercial fisherman. Friends and family shared in our sorrow so much that they gifted us the $16000 that they said was owed after they swept our account. So appreciated and grateful as soon as we recieved the money we took it to the state. The state in return told us us that the $16000 dollars that we paid plus the $3000 they swept from our account was really not enough because they have to wait for the court to give them the money and that will not be till around February and after that we will then owe $2000 in fees. We have no more places to get that $2000 and the state refuses to settle till they recieve the money from the court and the $2000 but they are willing to make an arraingment with my husband for signing over his Alaska PFD for  5 Years to suffice it. My question I guess is it possible to still have our loan approved we dont want to lose this house and we did truly try to fix it and we had no idea there was a problem. I read that you have to show three months of paying a judgement but in Alaska we only recieve a PFD once a year and that what the deal is not a monthly payment.


 

Alaska1 was this judgment on your report? I had a 600$ one that disspeared off my report and I wonder if it could come back. Can they find judgments that are not in your report?, if anyone else wants to chime in? thanks. If so are judgement eternal?


Judgements can be found in the public records of your county under your name. They may or may not appear on your credit report. The lender checks the public records independent of your credit report. Judgments last 20 years and can be renewed (easily) if they remain unpaid.  Some jurisdictions are 10 years rather than 20, but they can be renewed until paid.  The judgement accrue interest at the statutory rate until paid.  Check your jurisdiction to see how long judgments last in your area and what the renewal criteria is as well as the statutory interest.  Each juridiction is different.

 

The judgment has to be paid and a Satisfacton recorded to put an end to it. OR you can see if your jurisdiction allows for the judgment to be vacated.  You can negotiate judgments too. Don't mention you are buying a house though - the creditor that owns the judgment will not be flexible if you do because they know you have to pay off judgments before you close (lender requirement)

Frequent Contributor
Posts: 420
Registered: ‎02-14-2016
0

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

midland had it and they could not prove it in a dispute and just removed it from report. i ask the court about it and they said that they had in their notes that midland could not find me or something along those lines. i intend to fix it prior to getting an fha, I just want to be informed of all i need to do prior to. thanks for your response.


April 2015 490-510
March/2016 Equifax-636 TransUnion-632 Experian-639
April/2016 Equifax-695 TransUnion- Experian-663
Mortgage Scores:Feb/2016 Equifax-Fico5 591 TransUnion-Fico4 625 Experian-FIco2 569
Goal Score:across the board 725+


New Contributor
Posts: 64
Registered: ‎09-26-2014
0

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

So let me give you an example that I'm currently dealing with, and see if I'm reading this correctly:

 

I have 3 disputed student loan accounts that I've paid on time for 3 years with AES/PHEAA. However, I did look at them again, to see that there was a late in May 2014. I've disputed them for previous items, that I still think they are incorrect.

 

I also have one much larger loan that is a Student loan consolidation loan with Great Lakes. This one never was in dispute, late or etc. All good payment history. If I were to consolidate the other 3 loans with AES/PHEAA, into the larger already existing loan with Great Lakes, this pays off the 3 loans in dispute, obviously giving them $0 balances and closing them.

 

Having said all this-if I'm reading this FHA information correctly, the fact that they're paid off and closed, makes the dispute remarks irrelevant, because they will then become non-derogatory disputed accounts."

 

Am I correct in this? Just paying them off by consolidation bypasses the need to remove dispute remarks?

Starting scores: EQ 580 TU 575 EX 580 (9-13-2014) (not FICO official)
EQ 670 TU659 EX 707 (03-31-2016) per myFICO

Goal: 720+ on all

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