Please help what do I do?

[johnwantsahouse]

I don't know what to do.  My LO has told me that they won't pull my credit again, but I can't stop worrying.  Overnight, a collection from First National Collection appeared on Experian for $1131.  I called them wanting to know what it was and it's for DirecTV from an account in 5/2009.  It's showing on my credit report with Date opened 5/2011.  I called DirecTV and they said it's from equipment, which I thought I returned back in 2009.

The collection company offered to settle for 565 but won't delete unless I PIF.  I don't have but $600 or I would, have to pay $800 at close.  What do I do? Do I trust my LO that they won't repull credit? It's through Entrust Mortgage with Wells Fargo USDA Guaranteed.  I had a few old collections on there the LO said wouldnt matter and wouldnt have to pay.  My scores were EX-656, TU-650, EQ-640 when she pulled and the LO said they would use that report and scores as long as it didnt go past 60 days, and we're supposed to close by 7/11/12.  What do I do? Do I pay the 565? Use my close money to PIF and hope to come up with the money to close? PLEASE HELP ME! The manager at the collection company even had the never to say "Well I guess you won't be getting your house".

The other thing is one also showed up on EX that is for one I got a PFD on that was only reporting to TU.  It actually fell of TU a few days ago, never was on EX, but for some reason appeared this morning.  I faxed EX the letter from the company saying they requested the delete, hopefully they will get it off.

[cdtotten]

This is very common. When you start applying for mortgages, debt collectors will start reporting old baddies because they know they can hamper the mortgage process. You are much more likely to pay them off so you can close easily.

That being said, I would actually talk to your loan officer, tell her what happened and see what she says. The worst thing you can do is stay quiet and hope it works out. Your loan officer isn't going to run off and tell underwriting to deny you. They will know what steps should be taken... you aren't the first person to have this happen to.

Good luck!

[johnwantsahouse]

My LO has told me several times they just don't pull again unless I don't close within 60 days. I've asked her enough I've annoyed her so I don't know if I should again.

If love to PFD but they won't unless I pay 1135. I only have 600 to be able to still have my 800 for closing.

[jules0580]

Since its from 2009 and your LO said not to worry I wouldnt pay any of it right now, if it comes up again then what you can do is see if they (the mortgage co) will allow you to pay the agreed upon settlement price at closing Ive heard of people doing that, that way it doesnt update anything on your credit until after. Sometimes paying a collection can actually drop your score.

[germaine47]

Can you replace the $1100 before closing?  I received a collection letter from an old CO and I panicked , I was so afraid that they would place the information on my CRAs.  I ended up settling for a fraction of the amount.Take a deep breath and trust that the MB will get your Loan Closed.  Never Ever tell the Collection Agencies about your life"s goals because they will do everything possible to sabotage them.. Call your MB and see what she says I know I called mines at least  times weekly but you need to set your mind at ease.

[johnwantsahouse]

I'm just worried about it dropping my scores below qualifying or something. It's only on EX so hopefully first national collection doesn't report to all 3.

My LO actually said she'd dispute if it were her. She said lets wait and see if the LO says anything, but she doubts she will since it's not on the reports she pulled and submitted to underwriting.

I am a worrier and over analyze everything and anything and can't help it. Guess that's why I'm an analyst. Always been that way, and I don't think I've ever stressed this much. The biggest fear/letdown of this not going thru will be my 4yr daughter not getting her new house with her big yard for a swing. I never told her we were getting it, she was with us when we looked at it and put it all together. Don't you love how kids think!

[Booner72]

If it were me, I would PFD and borrow the money to do so.  I, too, am a worryer and this is your only guarantee, because some repull and some don't.

[johnwantsahouse]

I would if I could.  I had a negative account drop off from EQtoday that was from 2008 and it didnt raise my score.  I'm wondering if my score would even drop on EQ and TU if it was added since it's so old?