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Old and Large Collection

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Anonymous
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Old and Large Collection

I am applying for an FHA mortgage. Assuming the scores qualify how badly will I be affected by a 6 yr. old collection for a credit card with a $20,000 balance? Would the underwriters ask that I pay this off? If so it may be better to wait a yr. until the CA can no longer report.

 

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1 REPLY 1
ShanetheMortgageMan
Super Contributor

Re: Old and Large Collection

It's a tough call, that is a sizeable amount, but it's so old.  Is it past it's statute of limitations?  If so I'd document the law that confirms it's no longer collectable, go for a pre-approval and see what an underwriter says.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
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