@duckster wrote:
OOC, what are the chance of getting a USDA approval with three unpaid CO's that are scheduled to fall off in by July 2014 totaling about 6k? Other than those three I only have one other paid collection for medical debt. Zero CC debt and mid score in the 660 ballpark? I'm sure it would make sense to wait for them to fall off and my scores to jump substantially, but if it's possible I may take the plunge before.
Thanks in advance.
This will 100% be up to the lender and underwriter. If it were me I would try to pay and/or wait it out. Bad thing about unpaid C/O is that if paid, it could certainly drop your score since when it updates it may update to make the C/O look much more recent, followed by a paid notation in the payment history. This will not affect the exclusion date. I wouldn't expect the 6K unpaid to be ignored by a lender.
You still will have legitimate debt out there that is unpaid, however, even if it is not on your credit report. The SOL will determine collectability, but it's still debt that you owe.
