07-25-2011 12:52 PM
We're in the process of getting an FHA loan. Our loan is through UW, but is suspended until we pay off all collections. Our mid scores are in the 630s, and our lender requires 620; so we don't really have much wiggle room with our scores, and they are going to pull again once we get things paid off. Therefore, we really need to get some items deleted, otherwise the activity created by paying off collections will most likely drop our scores below that 620 mark.
All of our collections are medical except 1, and almost all of them are through Americollect. Has anyone had experience doing a PFD with Americollect? Also, there are a couple accounts that I believe are duplicates. Does anyone know if they will do a PFD for less than the full balance? I've actually started the HIPAA process with these collections, but now I'm in a time crunch and I don't have the time to go through all of that, so I just need them deleted ASAP if possible. If anyone has any advice on dealing with Americollect, I would greatly appreciate it!
07-25-2011 03:08 PM
I found this on the forums...hope it helps. I personnaly don't have any experience with Americollect but I do wish you best of luck getting those off in time!!!
07-25-2011 04:26 PM
Two bits of advice:
1. You can make it a condition of closing that you pay the collections off out of your escrow funds so you don't have to worry about any possible negative score effects.
2. I paid off 9 collections and I only lost 1 point. The date of last activity doesn't affect the score, it's the date of first delinquency that affects the score. I also believe I would never have lost that ONE point if I had not have disputed the accounts (with the cra's) to show as paid.
Good Luck - talk to your LO about #1 - I think it is your safest choice.
07-25-2011 08:48 PM
Thanks to you both! I sent a PFD e-mail to Americollect, so we'll see how that goes. If I don't have any luck there though, I think I will talk to our LO about how they can be paid. Didn't think of that before, thanks Booner!
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.