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Collection - Paid at Closing

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Collection - Paid at Closing

I got conditionally approved for a mortgage. One of the conditions is to allow the bank to pay Midland Collections at closing. I have disputed this debt with Midland via CRRM and received nothing back. It is more important to be to close on the loan than to fight Midland over $555. My question is should I allow the bank to Paid in full then try to get Midland to delete it later, or should I try and settle with Midland before closing the loan. I thought about offering Midland half, but I didn't know if this raised a flag to the bank. Thanks in advance. 

 

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