collections

[Anonymous]

Should all collections be paid in full before applying for mortgage?

[Tuscani]

Yes. They need to be paid or removed.

[ShanetheMortgageMan]

Well it depends... when were the collections, how much are each, and what was the circumstance on each of them?  Also, what is the rest of your situation?  There are some programs that require collections to be paid, and some that do not... both types of programs can have good rates too.

Message Edited by ShanetheMortgageMan on 12-13-2007 01:03 AM

[Anonymous]

We paid off several of our collection accounts back in February and March of 08 and some are showing up on our credit report as zero balances, but not as a paid collection.  The others that we paid are still showing as unpaid.  What do we need to do?  We are trying for a mortgage and I thought that this was taken care of.  Do I need to write the credit bureaus? 

[DallasLoanGuy]

By correcting the paid status, you may move up the date of last activity..... someone who understands scoring better than me can better answer that.

Regarding paying collections bfore you apply. NO!! Do not touch anything until you have applied. If the loan officer says to pay them, don't. Get another loan officer. I haven't seen a file that requires them to be paid in a long time.

I do not advocate that people NOT pay their bills. Just that they wait until after they get the loan so they do not update all of those old dates.

And.... Opt-Out!!