12-28-2012 10:34 AM
I have 2 collections reporting on my report. One is a collection agency (LVNV) for $511 dollars, the other is a $282 medical collection. We are trying to secure a mortgage soon and I am wondering which one I should pay first? They both have the same reporting date (each and every month) Any advice? Thanks!!
12-28-2012 10:38 AM
12-28-2012 10:41 AM
Personally, I would DV both. Then I would offer a PFD on the medical collection. They are usually the easiest to delete with payment. Then I would BBB LVNV, if they failed to provide dunning notification. Look up LVNV and BBB on this forum, you'll find out how to fight them and get it removed without a payment.
12-28-2012 10:46 AM - edited 12-28-2012 10:53 AM
One factor to consider is their potential to become worse.
Are either or both still within SOL, thus permitting legal action to secure a judgment?
The mortgage lendor may impose a requirement that all unpaid, delinquent debt be satisfied as a condition of any loan approval.
If you have a lendor in mind, you might want to have an informal chat with them, and determine what conditions will be imposed.
They may, for example, not impose such requirement on a medical debt, particularly at that amount. Hard to say......
As for a DV, I would think it through. If you send a DV, it must be timely in order to invoke any cease collection bar.
If timely, the cease collection bar will preclude any PFD negotiations until such time as they choose to provide the requested verification.
As for any issue of lack of dunning notice, that is a debt collection practices issue which, in and of itself, is not basis for disputing the accuracy of their reporting or requiring CR deletion.
Resolution of that issue would be possible sanctions or civil action for an FDCPA violation. If pursuit of that issue is desired, you can send a complaint to your BBB, but they have no enforecment power. I would, at the very least, start with a formal complaint to the FTC. That is kinda a side-issue.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO