topic Re: PFD after payment plans? in Rebuilding Your Credit

PFD after payment plans?

Anonymous — Thu, 07 Jul 2016 17:51:46 GMT

In 2014 I had some unexpected medical bills, and my insurance refused to pay some of them (long story). While I was in the process of fighting it they went to collections in 2015. I have been making payments on them to the collection agencies- I realize now this may not have been the best option.

I have about $1200 left on each of them, and I now have the means to pay them both off completely. Do I have any chance of a pay for delete if I'm already making payments? How would I go about that? Every sample letter I see involves not acknowledging the debt, which I obviously can't do if I'm already paying it. Do I write a letter and throw myself at their mercy and ask if I pay it in full if they are willing to remove it?

If I can't get them removed, these entries are about 1.5 years old now. If my husband and I were to try to get a house in a little over a year, how much will this hurt us if he has good credit?

Re: PFD after payment plans?

RobertEG — Thu, 07 Jul 2016 17:58:40 GMT

You can always make a PFD offer.

You are making an offer to amend your current agreement that might have benefit to both parties.

Give it a go.......

As for impact on a home loan, that entirely depends upon the underwriting requriments for the loan.

Some do not include collections on medical debt, while others only include if above a certain amount.

If satisfied, it will no longer be delinquent debt, so wont be a show-stopper, but of course will have the secondary impact of continued effect on your credit score until the collection is gone. Paying will prevent continued updates, and thus permit some score recovery to begin before it is ultimately excluded at 7'ish years from DOFD.

Re: PFD after payment plans?

Anonymous — Thu, 07 Jul 2016 18:03:40 GMT

Thanks @roberteg. So should I frame it more like a goodwill letter? I couldn't find any templates to start from that didn't base the whole thing on not acknowledging the debt.

Re: PFD after payment plans?

RobertEG — Thu, 07 Jul 2016 18:36:48 GMT

It is not necessary to frame it as a good will offer.

It is an offer to amend your current agreement with them. It is a form of good-will in that it is voluntary on their part, but you are offering something of value to them, in exchange, so I would simply make the offer without mentioning good-will.

"This is good for both of us" explanation......

Re: PFD after payment plans?

RonM21 — Fri, 08 Jul 2016 02:56:03 GMT

The PFD option is the best route since you can pay it all now. Hopefully they work with you on it. If not, after a few tries, you can try to pay it then send GW letters for deletion.