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Even when a CO, you still owe and are technically past due.
A closed account with a balance being reported by the OC will still be counted in your util....you might see an increase by paying it.
At any rate, I would attempt to take care of the debt with the OC before a CA gets the account and ends up on your report as well, especially if you are in the process of buying a home. The last thing you want is a CA added.