Old collection account from 2003 -- Home Loan ReFi

[Big-Surf]

I'm going to refi my home loan very soon. I'd like to get my FICO scores up

TU - 710 (my fico)

EQ - 698 (my fico)

EX  - 766 (at truecredit)

I only have one derogatory account - it's in old collection account from 2003 with Adelphia Cable for $206. I disputed it and it came back as verified from Time Warner Cable, after the dispute Time Warner sent me a collection letter. 

I have a few questions that I'd love some help with:

1. If the account was with Adelphia Cable and Time Warner took over Adelphia do I still owe this debt?

2. Should I pay the $206 - I called Time Warner and they said they will not remove it and that they would only mark it as "Paid" but will this effect my current score?

3. If I do pay it off will the DOLA update? will it stay on for another 7 years because the reporting data is 12/1/2003 so it should come off 12/1/2010 right if I don't pay it.

4. Will the mortgage company even consider me if I have an open collection?

Thanks in advance for any help

[llecs]

1) Yes you still owe it. Just like BofA took over Countrywide, people would still have to pay their mortgage, as an example.

2) Keep sending PFDs. Send them over and over and over and over and over until they accept or it falls off sometime next year, whichever comes sooner. Try mail, fax, e-mail, smoke signals, etc. I used Planetfeedback.com to remove a Verizon Wireless debt once. If you pay it without a PFD, your score could drop a little because the DOLA and/or reported date would update and FICO would see this as a newer baddie. The damage should be minimal.

3) If you pay it DOLA will update. But that doesn't matter. CRTP and SOL is based on DOFD. DOFD will not change and it will still fall off as scheduled. For figuring when it would drop off, ignore the DOLA. Pull your reports directly from the CRAs. You'll find a drop off date. That date would preceed your DOLA date. It should come off prior to 12/2003.

4) YMMV on lenders, but most lenders won't care if this is the only one.