fha derog question

Anonymous · ‎02-23-2012

I have 4 derogs only 1 is not a medical collection. It was from Qwest internet its for like 90 bucks. I applied for a fha loan last year, and the loan officer said they dont care about the medical debts at all, but the Qwest was still within 12 months so they did not approve me.

When i apply again i will meet all of the other requirements, and the qwest as well as medical bills will be 12months+ old. With a fha loan will they just ignore the debts since they are 12+ mo's old? or will they want me to pay the qwest one, or even maybe want me to pay the medical ones? I thought it was only on conventional loans sometimes the underwriter's want people to pay off old collections, I dont mind paying qwest, the only reason i dont do it now, is I am scared it will refresh the date on it again, (it is 2yrs old, but when qwest went to century link, they sold the debt or something and it refreshed the date on it.)

Should I just leave the derogs alone since they will be 12+ mos old, and wait to see if the bank/underwriter wants me to do anything with them? Or are they going to want to see the qwest as "paid" and i should just pay it now so it will reflect that on my report when i go to apply?

ripper998 · ‎02-24-2012

have you tried to request a pay for delete? My LO said that the medical collections that were on my account for 4 years ago didnt matter, but I still had them taken off as they were bogus anyway. Whats your three FICO's? The underwriter will come back with a list of conditions and its at their discretion what they need to see done to approve the loan.

boomhower · ‎02-24-2012

Some lenders will require them to be paid and others won't. Some have a policy that all must be paid and others it varies. Basically what it boils down to is they want to make sure they are the first ones paid and no liens can be obtained on the property. If the amount is a point they think that's a possibility then they will require it to be paid. I was recently approved with a $2.5k unpaid collection that wasn't required to be paid. It was six years old and outside of my states SOL. The UW didn't make a peep about it. Just had to write a short LOE and that was it, not an issue at all. But it will vary from lender to lender. Mine was Wells Fargo.

namvet · ‎02-24-2012

@boomhower wrote:
Some lenders will require them to be paid and others won't. Some have a policy that all must be paid and others it varies. Basically what it boils down to is they want to make sure they are the first ones paid and no liens can be obtained on the property. If the amount is a point they think that's a possibility then they will require it to be paid. I was recently approved with a $2.5k unpaid collection that wasn't required to be paid. It was six years old and outside of my states SOL. The UW didn't make a peep about it. Just had to write a short LOE and that was it, not an issue at all. But it will vary from lender to lender. Mine was Wells Fargo.

I agree with the above. It depends on the lender and the loan product (FHA,conventional etc.)

Anonymous · ‎02-24-2012

It would be an fha loan, my ficos are like right at 620, so a sneeze would knock me below the mark. The only reason I dont try a pay for delete, is since the date has already refreshed a whole year once on it, I am scared I might awaken it again, If i do a pay for delete or attempt it, that won't put any issues on my report if they decline the offer would it? Like what i was reading about lenders demanding that nothing resembling the word dispute can be anywhere on your report before they can move on.