Will this prevent me from getting a fha loan?

[Anonymous]

Hope this is the right forum

I have a collection account from an apartment complex. It wasn't for rent, it was because when I moved out they wanted me to pay for carpet that got damaged when the toilet was leaking, cleaning costs, and paint. It was their fault for the carpet and the place was spotless when I left so I didn't agree with cleaning costs and paint. When I talked to the landlord she agreed to remove the cleaning costs, but still, I wasn't going to pay for the other stuff. I tried to give her the reletting fee only but she didn't take the check. Now I have a collection on my report since 06/08. I tried pfd to ca but I have not gotten a response (its been two months).

will this prevent me from getting my loan? Should I just pay it all off now? Will I need a letter of explanation for the loan officer? Any advice will be appreciated.

[WannaHouse]

Go ahead and apply and see what the LO says about it. They may not care about it. If they want it paid, let them tell you that. You don't want to just go ahead and pay it and mess up your scores.

Kathy

Message Edited by WannaHouse on 03-31-2009 05:22 PM

[DallasLoanGuy]

Probably will not be a factor if approved thru automated underwriting. Manual underwrite will be more picky and would depend on the strength of the file.

Depends on lender.