topic Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant. in Mortgage Loans

In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

jsully87 — Tue, 04 May 2021 18:41:07 GMT

I have be preapproved and one of my conditions is to pay off my old collections. All are 3 years old or more.

National Credit Systems - sent me a 50% offer last year, won't accept it now.

Ford/Citi was with a collection agency, now they say contact orginal creditor. I called the number they gave me and got hung up on after transfer.

7 accounts with Midland - I want to settle all at once, I chatted today and they said theyre with an Attorney and wouldn't give me info and I haven't gotten any letters or anything in almost two years.

4 accounts with Portfolio. 3 of them lawsuits, hired a lawyer and two settled, one pending answer , one I still need to call on.

I am so frustrated.

My payment history has been perfect for the last three years. I wish mortgage companies could just look past all that. I'm paying mortgage insurance for a reason right??

Is there a good company I can just hire to do this all for me? I am at my wits end and I'm about to just walk away from the house at this point. I have the money, I want to pay these things (50% or less, because my ex helped with this debt) I just want to be done with it all!

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

tooleman694 — Tue, 04 May 2021 19:34:40 GMT

Do you have a closing date yet.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

jsully87 — Tue, 04 May 2021 20:15:13 GMT

June 7th

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

Michizane — Tue, 04 May 2021 20:43:41 GMT

The last thing you should be doing is paying someone else to handle it. Unless you are actively being sued or in court, it is a waste of money and time to hire someone at this point. Just call each company daily and keep making offers (since you have a month left to meet conditions). If you have money to pay someone to handle it, you should have enough to settle each one.

Mortgage Insurance is to cover in case you default, but the will not lend if they feel like you will default. Not sure about the numbers behind those collections, but having all of them contact and try to get the money back can be financially rough for the average person. Don't know your entire financial picture, but some lenders might factor collections into your DTI and may look past it depending on the loan type and if you have enough income. So either your loan type or lender doesn't allow this, or your DTI will be too high for these collections.

All that said, just keep calling and ask for a counteroffer, etc. You won't always be able to settle for close to 50% as it depends on the amount, etc. Or maybe they know that you applied for a mortgage (I've heard of collections agencies being able to tell by soft pulling your credit) and also know that your are now calling them because it is a condition for your close, which means they have leverage. There is a reason why you need to address these before your apply for a mortgage...but that said, it will be waste to just let it all go at this point.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

tooleman694 — Tue, 04 May 2021 20:42:40 GMT

I agree, at this point you need to push hard to get these cleared up.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

Anonymous — Tue, 04 May 2021 21:09:56 GMT

They likely realized you're apping for a mortgage and need to close your collections to move forward, so now they aren't budging on the %50 because they know you will pay what's necessary to resolve it. Atleast that's how malicious I see these CAs.

if you are referring to Midland credit for collections, they do offer pay for delete. They submitted a collection of mine to an attorney for a default judgement. They too did not want to give me a good discount to settle as they knew they had me by the balls. Luckily I paid and they deleted the collection from my account.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

House2021 — Wed, 05 May 2021 05:20:36 GMT

I had problems with one creditor not taking payment, it took me 20 days but I finally got them to accept payment. Midland settled with me for 45% of the balance and deleted within 7 days, I also had difficulty getting Midland to accept payment, but it took 5 days of calling daily asking each time fora supervisor and finally reached someone

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

jsully87 — Wed, 05 May 2021 17:18:18 GMT

That gives me hope! Thank you - yeah I'm going to try and call today and ask for supervisors each time.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

House2021 — Wed, 05 May 2021 19:05:24 GMT

The person I finally was able to resolve it at Midland was Kelly Hanson, she's US based customer service, direct line 800-265-8825 x98977 I would try her, the others were useless and wouldn't even transfer me to supervisors, she was the 3rd supervisor up I reached when someone finally transferred me after 5 attempts to reach anyone higher up.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

jsully87 — Wed, 05 May 2021 21:13:06 GMT

Thank you SO much!!!

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

CyberChick — Sat, 08 May 2021 12:46:33 GMT

I have had ZERO issues with Midland even those "with the attorney." I have paid all - settled one and all are removed. Midland doesn't hold people hostage, you'll be fine there. They will fall off pretty quickly.

Let me know how it goes with National Credit Systems - I'm going to deal with them next. It's my last one. It's a joint debt and I'm hoping they'll let me pay half and move on.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

jnbowmar — Sat, 08 May 2021 16:02:39 GMT

@jsully87 wrote:

My payment history has been perfect for the last three years. I wish mortgage companies could just look past all that. I'm paying mortgage insurance for a reason right??

Is there a good company I can just hire to do this all for me? I am at my wits end and I'm about to just walk away from the house at this point. I have the money, I want to pay these things (50% or less, because my ex helped with this debt) I just want to be done with it all!

Your paying mortgage insurance for no reason other than pure profit actually. The house itselfs secures the loan, if anything you should need mortgage insurance for 2nd mortgage thats going to get wiped out if the house goes to auction in the event of default.

Nothing in the credit world makes any sense untill you relize the whole thing is purely about maximizing profit, and has almost nothing to do with mitigating risk.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

jsully87 — Mon, 10 May 2021 18:33:01 GMT

National Credit Systems wouldn't accept the 50% offer they gave me last year. I'm waiting to call back.

I tried calling Kelly at Midland again today - I keep getting different people, apparently she is popular. They hung up on me again after putting me on hold even after I said I wanted to take care of 7 accounts today.

I'm struggling with lenders - I talked to another guy that said I didn't have to pay them that they could just factor in a percentage into my DTI which is already low so that's fine -- but his interest rate was high.

The broker I have been talking to for 2 years ran my report again today and said that all the disputes were still on there -- even tho I've had them all removed with confirmations and letters to prove it. Not sure why, unless the collection agencies put them back on there the second they come off. VERY frustrating.

I'm shopping around for local lenders now, waiting on two responses.

Apparently some lenders will get you an FHA Approved/Eligible status but then ask for more things in UW which is frustrating because I won't know til they send it. So now I'm up to 30 something inquiries.....

PRAYERS please someone can get this done today and get an appraisal ordered right away because the sellers are getting antsy, even though I'm 30 days out.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

jsully87 — Mon, 10 May 2021 20:49:57 GMT

@House2021 - Kelly only works in their "new" system and all my accounts were in the old system so she couldn't help me

So now I'm talking to someone else. Hopefully he's nice to me!

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

House2021 — Tue, 11 May 2021 03:45:58 GMT

Hope he was nice to you! Good luck!

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

jsully87 — Tue, 11 May 2021 18:34:05 GMT

@CyberChick any luck with National?

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

CyberChick — Wed, 12 May 2021 12:26:20 GMT

I spoke to them yesterday, made a small payment so the balance will start coming down. I have found National Credit Systems to be VERY professional and easy to deal with. I will make another large payment and they say they will delete when it is paid in full. They would not give me a discount because the original owner of the debt would not accept it - but they did try.

Have you had any luck with Midland? I have found them easy to work with. I have no more Midland on my report at all.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

jsully87 — Thu, 13 May 2021 17:46:08 GMT

Midland wouldn't go lower than 60%

Dispute comments are taking a LONG time to come off -- OR they keep popping back on. Every time the lender pulls to see if they are gone it hurts my credit more.

Now my original lender wants to cancel my loan. They haven't even scheduled appraisal yet.

Now I have another lender at Loan Cabin working my deal, he said he's sending it to Carrington. My closing is June 7th. I don't think we will make it. Not sure if sellers will push since they are contengent too.....

No local lender will touch my app with disputes still showing and collections not off yet even tho most are paid now.

SO this morning my realtor is talking with the selling realtor asking them if they will take my sale proceeds(140K) and "owner finance" me the house until I can get a loan....

In the meantime I don't know whether I should get an AirBnb, an apartment or just go buy a different house cash....

Monday is closing on my sold house so I'll be basically homeless come sunday night.

This is so frustrating.

Even with rush appraisal, rapid rescore, and rushing everything else, theres a chance my scores will make any underwriter not want to touch my deal.

Prayers are definitely needed.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

CyberChick — Sat, 15 May 2021 00:31:53 GMT

Crossing my fingers for you, sounds like a nightmare.

I was able to get most of my dispute language removed, I'm sending out another batch of letters this week.

Re: In underwriting, trying to pay off 3 year old collections....having a hard time, vent/rant.

House2021 — Sun, 16 May 2021 05:46:55 GMT

CyberChick you were able to get the dispute comments removed by talking with the creditors or credit bureaus?