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LO just changed his opinion..HELP!!

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Anonymous
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LO just changed his opinion..HELP!!

ok, so if youve been following my posts you would see that I had set up to pay on all 6 on my collections in the next two week per advice of my LO. I asked what everyone thought about re aging and if my score would drop that much... so I went back to my LO and asked him if i couls pay them at closing..now this is what he said today...(which im wishing he wouldve told me earlier)

 

Yes, you can typically pay off collection accounts at closing.  We will also accept "settled for less than full balance", which can be a bit trickier to pay at closing since the creditor typically expects a quick pay off once they cut a deal.  If you are concerned about the re-aging, then paying them at closing may be the best plan.

 

In the whole scheme of things, I am an employee of Merrimack Mortgage.  Merrimack Mortgage is the lender who will be funding the closing.  After the closing, Merrimack Mortgage will "sell" the loan to NHHFA as long as it meets their guidelines. (we're pretty careful to make certain it does)  NHHFA, in turn will contract with a company called Dovenmeule Mortgage who will service your loan.  That is, collect the payments for the next 30 years.

 

so now heres my Q's... I already set up payment plans with thse CA, does that mean my account already re aged? and id like to arrange to pay them off at closing now.. so can I use the money i would use in two weeks to pay off the CC now? thaty should give us the boost we need to get at 620 or even higher... i was 611 with 99% util and my husband was 587 with 112% util. can i do that if i already arranged with my CA? and will the reaging have already happened? if i pay in two weeks on my CC's and just plan to pay at closing the CA, how soon would the score jump up?

 

Sorry I know this is a long post...thoughts? my LO hadnt actually suggested that to me, so I asked him if i could do that after advice from these forums...

Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: LO just changed his opinion..HELP!!

Hello there! We are neighbords... I also live in New Hampshire and we'll be closing on our new home in Manchester tomorrow. Smiley Happy

 

I can't remember your situation, i'll go back and read them now but i will tell you i had a horrible experience with a sister company of Merrimack Mortgage. They were constantly changing things on me so i found a new lender who was absolutely wonderful and even helped us with a downpayment assistance program i didn't know existed. Anyway they were very disorganized and constantly had to check with the main branch... took forever to get responses! I wish you better luck than we had with them.

Message 2 of 5
Anonymous
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Re: LO just changed his opinion..HELP!!

I just read your posts, i think i can help you with some NH specific info if you're interested. I sent you a private message Smiley Happy
Message 3 of 5
Anonymous
Not applicable

Re: LO just changed his opinion..HELP!!

If you already made arrangements, they will not likely cancel them.  You can try, but they usually will not.  This is especially true if they already have billing info (i.e ACH, check over phone, card info).  Once they put it into their system, you are usually out of luck as far as stopping it.  Also, even if they do, make sure you keep the money available as once they have your OK to run a charge (and it is a legitimate charge), if it gets sent through because they "forget" to stop the transaction you can't do anything about it.  IN the end they are a collection company and that is all they care about.  If that happened and it caused an overdraft on your account, it could kill your loan right there.  SO, even if they agree, keep the money banked until close.  You can pay off the CC up until the day before closing and do a rapid rescore if needed.
Message 4 of 5
DallasLoanGuy
Super Contributor

Re: LO just changed his opinion..HELP!!

if the lender doesn't re-pull reports.... then this doesn't matter.

 

if your lender didn't require collections to be paid(FHA doesn't require) then this wouldn't matter

 

Retired Lender
Message 5 of 5
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