Help with Verizon wireless

[Khh2011]

Hello everyone!  i am new here but I've been reading a lot.  We are applying for a mortgage in 6 months and I'm trying to clean up my credit ASAP.  My question is about a Verizon wireless account.  I went over minutes one month and they charged $325.  I didn't have the money at the time (this was in 2007 or 2008).  Now it's reporting on my credit report by Verizon as 120 + days late.  I called to work out a deal and they threatened to sell to a collection agency if I don't pay it.  My mortgage broker said not to pay it because it is old and it won't matter for FHA.  What should I do?  If they do sell it to a CA won't it reactivate it?  I can't afford to lose many points because I have a 637 mid score (pulled by lender) although this was before I paid off my credit cards from 55% util to 3%.  Please help!  Thanks so much!

[Repo-ed]

Send a GW to execuative relations, but by simply paying it, it will not improve your score.

So if a GW does not work, and the broker says not to touch it, then don't

The damage is already done to your score and by selling it to a CA may or may not impact your score further.

[fishbjc]

I would imagine a nice score bump on util alone. 

[Shogun]

It shouldn't factor into util since it would not be a revolving account.  My suggestion would be to follow your broker's advice.  If they make you pay at closing, then do that.  After your mortgage is done, I'd send a PFD.