Will these collections hurt my chances of getting a mortgage?

[Anonymous]

I have a few collections showing.  One at about 2000, and I a few months away from falling off, the others are medicals that  are totaling about 500.  How would these effect my chances of getting a mortgage right know. 

Jumping for joy, score on May of 2007 548

Today,

Tr/660

Eq/609

Ex/641

[Anonymous]

A lot of times the mortgage lenders would like to see that you have paid off your debts .  I think with FHA, sometimes you don't have to pay medical collections.  Maybe the experts have some better advice.

Oh didn't realize, that the $2000 is about to fall off soon.  I would just wait it out, and let it fall off.  But I know some people believe it is your moral obligaiton to pay your debts.  But whatever works for you and you situation is paramount to anyone's else concerns.

Message Edited by lawandproud on 03-27-2008 06:59 PM

[Anonymous]

thanks. 

I have been working on my scores for what feels like for ever, and I just want the best situation when I pull up to the table.

Will paying off any of these accounts make my score drop?

[Anonymous]

It really depends on your overall credit profile.  Some people would opine that by paying them off it rebuckets you in the FICO scheme, and consequently you lose points.  In my experience by paying off the collections, my scores weren't adversely affected.  In fact, my scores have gone up aoproximatley 100 points since December of last year.  So, I think it just really depends.  But good luck to you getting your scores up, it is a tough road, but well worth the fight!

[Anonymous]

Are you talking about items in your report which have been on collection(derogatory,chargeoff,)?  I have started doing this since February and no change since.  How long do I have to expect some changes after paying them off?  Thanks  

[Anonymous]

It's hard to say when to expect to see score changes, because as I stated in the earlier posts it depends on your overall profile.  I had some on time payments, with student loans that were posting.  I also opened up a new credit card account, with a very low util, about 13 percent, which I pay on time every month.  So it all depends.  Hopefully, your scores will go up soon, just pay all your other bills on time. 

[Anonymous]

Here's my experience with FHA. When I took out my FHA, I HAD to pay my medical collections. If I did not, then they had to roll that into my closing cost. Either way, you end up paying for it. I'd just pay it and get it over with now than later

[Anonymous]

I just emailed an FHA loan specialist from Chase the other day and he specifically said "All Collections" should be paid prior to closing, but I failed to ask if this includes medical bills.  In another forum, Shane (the mortgage specialist) said that it all depends on the lenders loan requirements. 

Message Edited by workmywayup on 03-28-2008 12:54 PM

[Anonymous]

To me, collections are collections no matter how you cut it. But if you need clarification, I'd give them another call. Don't let $500 stand in the way between you and a house.

[Anonymous]

My mom is buying her first house next week (closing Wed) and is getting a FHA loan.  Her agent told her she had to pay a collection on her CR (around 500) by giving a check to the lawyer at closing.  So I think, yes, you will have to pay the collections before closing but you can check around to make sure.