medical collection due before closing

[Anonymous]

I have received pre-approval on a mortgage loan (USAA), which will be a VA loan. Lender states that VA requires a medical collection be paid before closing. I did receive the medical care from a facility that is a provider for my insurance (translation - provider (facility) has agreed to accept the "allowed" amount deemed by my insurance company). I received statement from provider (facility) for total billed (insurance claim denied due to incorrect coding of claim). Before I could take care of the problem with the provider, it was turned over to collection. I spoke with the collection agency, explained claim was filed incorrectly and was told it would be refiled and then I would be rebilled for 'correct' amount owed. Nothing has paid on this claim.

I DO NOT OWE THIS COLLECTION, but I now cannot close unless it is a -0- balance. DO I HAVE ANY RECOURSE, except to pay this bill that I do not owe.

[BrianB_The_Loan_Professor]

The bank makes the rules and if they say it has to be paid or no loan you have to decide which is more important

You can always fight it after the fact and see if you can get your money back

[Anonymous]

Are you saying this is up the the 'lender'? The lender told me this was a requirement by VA. If it is up to the lender, should I try a different lender?