mortgage approval with conditions

[OaimeeO]

I have already posted a few questions about a mortgage that I am in the process of approval with and you guys have been so helpful thus far. I have another question, but it may be better answered in the credit forum, please direct me if it should be moved.

 I have gone through the mortgage app process and was approved with quite a few conditions, one of which was to pay a collection account and have it updated as so on my credit report. This collection account is with Midland with an Aspire visa that I acknowledge as my debt, but for way less than the amount. The charged off amount by Aspire was in the amount of $619 but with the fees and such that Midland has added the amount is now $2560. They sent a notice for settlement in full for the amount of $1500. My question is, should I use this notice and pay the amount, or is it possible that they may take a lesser amount and still do the Paid In Full? Any one with experience on this?

If I had more time, I would have tried to fight them on some kind of violation, but with my closing set for April 19th I don't have much time.

Thanks for any help!

[Anonymous]

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My advice would be to call and negotiate. Collections agents are eager to get people to pay and will often offer you a better deal than what was initially put out there. After college I had a jerk of a collector call about a $4K credit card debt and offered to settle for nothing less than $2500. I didn't have the money at the time but when I did I called back about a settlement and demanded to speak to another agent who offered to settle for $1800 and agreed to report to credit bureaus as "paid in full" vs. settled for less - As always get something in writing first.

[Anonymous]

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@Anonymous wrote:

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My advice would be to call and negotiate. Collections agents are eager to get people to pay and will often offer you a better deal than what was initially put out there. After college I had a jerk of a collector call about a $4K credit card debt and offered to settle for nothing less than $2500. I didn't have the money at the time but when I did I called back about a settlement and demanded to speak to another agent who offered to settle for $1800 and agreed to report to credit bureaus as "paid in full" vs. settled for less - As always get something in writing first.

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Agreed wholeheartedly.  Also, don't tell them why you're so anxious to deal with it.  If they know you're trying to get a mortgage, it will give them leverage.  Just make sure you have something in writing indicating that they will update it for the agreed upon settlement amount.  Whether they remove it or simply update it; whatever.  Obviously removing it is better! 

[DallasLoanGuy]

you can negotiate a settlement.

you might ask them to itemize what you owe too.... light a fire under them to clear this up.

settled = paid as agreed to the lender. so dont worry about that