Unpaid 8 month collection (hunter warfield) need help asap

[alifaraj68]

I am applying for a mortgage and my fico 621 just barely will qualify for the loan the loan officer wants me to pay this collection off before we close... will that lower my credit score? Will there be a difference if I pay it in full or settle for about 50% of what I owe ($2700)  please help

[rckstrscott]

Paying a collection account such as Hunter Warfield should not cause your score to lower. They don't report as a factoring account, they are not included in your util, you shouldn't see any change in your score. With that said, I wouldn't pay them until closing. Your loan officer SHOULD be advising that, so your score won't change.Often times, you can pay AT closing to avoid the scoring issug.

Keep in mind, they will likey not settle for 50% -- I have worked with them before, they deal specifically with assigned debt, and the amount they will settle will depend on what the OC decides to do.. if you left an apartment on bad terms, then the odds of settling is greatly reduced.

Good luck with HW!

-scott

[alifaraj68]

thank you for your reply there is a chance the bank will have to re pull my credit beacuse of the report expiring while in process if i pay them my score wouldnt go down? I cant afford this loan to fall out

[rckstrscott]

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@alifaraj68 wrote:

thank you for your reply there is a chance the bank will have to re pull my credit beacuse of the report expiring while in process if i pay them my score wouldnt go down? I cant afford this loan to fall out

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Well, YMMV but I had to pay down a judgment, a tax lien and a large collection AFTER they pulled my score the first time for my mortgage, and none of that activity changed my FICO score.

-scott