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New Collection Account Shows Up Just Before Clear to Close

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Sneakytiki
Frequent Contributor

New Collection Account Shows Up Just Before Clear to Close

So I'm just about to get a clear to close and on one report which had to be my middle score, a new collection account shows up that I have never recieved letters from dated for last year. My broker/originator says don't worry about it but now I'm freaked out. It dropped my mortgage score to a 625 from a 628.

 

Is this potentially a deal breaker for a VA loan? Worst timing ever.....its only for $300 so I just want the thing gone. Its from a bill I had problems with 4 or 5 years ago with Comcast.


Starting Score-(01/2017): FICO ||EX:575--EQ:549--TU:588||
Current Score--(04/2018): FICO ||EX:686--EQ:697--TU:715||




Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: New Collection Account Shows Up Just Before Clear to Close

I think you're gonna be alright, worst happens you pay them the 300 dollars.

Message 2 of 5
peepers
Frequent Contributor

Re: New Collection Account Shows Up Just Before Clear to Close

Im not sure how it will affect the overall picture (your lender would have to advise on that) however just to be a step ahead......is actually still with Comcast, or was it a collection agency?  Determine who you are dealing with, head over to rebuilding board and ask/research how this party is with pay for deletes. If you are required to take care of it by lender, you'll already be armed with info.  AND hopefully its a party that does PFDs and you can have a rapids rescore done after.  I wouldnt do anything before speaking with lender, however it never hurts to have a jump on info in the event you need to act fast!  Good luck!

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MyFICO: TU 780, EQ 785 EX 776 Discover TU FICO 780. Rebuilt from 500's....closed on home May 2015!

Message 3 of 5
Anonymous
Not applicable

Re: New Collection Account Shows Up Just Before Clear to Close

This is pretty typical as CAs will purchase lists from the CBs of people who recently applied for mortgages, and will then scour the list looking for targets to hammer under the safe assumption that they'll get paid to go away.  Worst case scenario is you're out $300.  Keep working with your LO; if they say it's not a problem, it's not a problem.

Message 4 of 5
Sneakytiki
Frequent Contributor

Re: New Collection Account Shows Up Just Before Clear to Close

Thank you for the help. It is a collection agency called Southwest Credit Systems. They already have my old reports that are only a few weeks old but they're going to see it on the soft pull.

Mortgage company says it's not a deal breaker and don't worry about it, just wondering what the underwriter is going to say. Dirty move by the CA, I would have paid this years ago if I had known about it.

I'll make a new post in the rebuilding forum.

Starting Score-(01/2017): FICO ||EX:575--EQ:549--TU:588||
Current Score--(04/2018): FICO ||EX:686--EQ:697--TU:715||




Message 5 of 5
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