@faiths13 wrote:
Between my husband and I we have 3 collections that total almost $5000. our lender told us if we make payment arangements on each of them and pay 1-3 payments (prefarably 3) then we can qualify for a loan. My question is, if we do indeed make payment arangements on each and pay the agreed upon amounts for 3 payments, is that really enough? I'm just thinking we still would have a lot of debt and I just want to make sure that just making payment arangements and paying on them is really enough to not worry about the collections issues. I dont want to make payment arangements and pay on them only to be told no for a loan because we still have too much debt or something.
This is a little off-topic and your question, but it goes to your concern about making payments and being denied. Be very aware that in some jurisdictions making a payment will reset the statute of limitations. If these collections are outside the SOL, be prepared to keep making payments otherwise it is possible that if you quit making payments the collection company will chase you for the balance. If you have a home and they get a judgment, the may be able to place a lien against any equity in your new home.
