I'm in the process of buying a house- have my pre-qual, about to make an offer tomorrow, and I just got a letter from a collection company yesterday- if this hits my credit before closing (it hasn't yet) it's really going to mess things up- what is the best course of action? Can I call the collector and just offer to pay for not reporting? Help!!!
Not sure what the best course of action to address it is, but the underwriter will see it on the credit refresh (happens just before closing) and will most likely want to see how it has impacted your scores (re-checking credit). If you have a lot of points to spare, it may not be the difference between getting approved or not, but it most likely will have an impact on your interest rate. Definitely want to address it ASAP, I suggest you post in the Rebuilding Your Credit section.
The collection agency usually doesn't report when the original debt occurred, just when it was sent to collections. So I don't think that'll matter when it comes to impacting your score. Medical debt is usually not a big issue when qualifying for a mortgage though, so as long as your score still qualifies it most likely wont make a difference if you can qualify or not.
I would recommmend contacting the debt collector and offering a pay for not reporting agreement.
The dunning notice sent by the debt collector should have provided the name of the creditor and the amount of the asserted debt.
From that information, you should normally be able to recognize the debt.
Do you recognize the debt? Do your records show when it first became delinquent?
If/when a debt collector reports a collection, they must also provide the date of first delinquency on the OC account to the CRA.
The CRA will then use that reported DOFD to determine when the collection must be excluded from the consumer's credit report.
If you recognize the debt and know the DOFD, you should be able to determine whether or not, even if they do report, it will see the light of day by inclusion in your credit report.