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Posts: 7,225
Registered: ‎09-16-2011
Re: Collections on Credit Reporting

heathuhhhhwebbbb wrote:

Just a question.  I'm planning to try to get a house in about 6 months to a year, and am wondering how picky lenders are when it comes to medical collections on your credit reports.  I have 2 that show up on my Equifax, 1 showing up on Experian, and none on my Transunion (not sure why the variation).  Both DOFD are from March 2011, and one is for $150 and one for $400.  I tried PFD but haven't received any response yet.



Thanks in advance for the advice.

Collections can put your loan at risk if the amount is very large...    In some / most states, the creditor can take you to court and get a judgement for these amounts, which can lead to a garnishment of your wages.    A lender will protect himself by making sure that you are not at risk of having a judgment filed since the judgment can be made and can result in a lien on the home or a garnishment of your paychecks.  If your checks are getting garnished, or  your bank account gets a lien, then that would hinder your ability to pay the mortgage...   So basically the lender is just trying to cover the bases and make sure that there isn't a lot of risk floating out there.

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