Afraid to Pay Medical Bills

[Anonymous]

I have about $4000 that I will get from income tax. However, I wanted to use this money for DWN Payment on a home in about 7 months. But I think it will better if I can pay old medical bills.

I have 10 open accounts that are with CAs. They are all medical bills that range from the year 2002 to 2006. I have about 4 on there from a 2006.

I called the CAs and one of them agrees to delete the account from their database (the CR) if I pay it. The DOLA for this account is 2006 and is $1054.The letter of removal from that CA is in the mail. All the rest of the CAs refused to deleted if I pay them in full and it will show Paid-In-Full on CR. However, I sent the PDF letter anyway. No response yet.

My score is a 591 now, but I am afraid if I spend about $3500 paying these medical bills (Paid-in-Full) it will decrease my score and then in 7 months I may not get a mortage loan (at a decent rate) because the score droppped. 

I am paying on time my 1 credit card, student loan, and truck note. I have $50 balance on the credit card with a $500 limit.

What should I do? Should I take the risk and pay some of the medical bills or just keep making on time paykments and hope the score increases.

Thanks

[Anonymous]

I am trying to clean up my credit to qualify for loan.  The mortgage broker told me to get as many of the derogs as possible removed, but everything on the report had to be shown as paid or paying as agreed.  She said that my score would be lower (everything bad is more than 2 years old), but my application could be processed manually to get me qualified.

[Anonymous]

I am literally stuck between a hard place and rock with paying medical bills, then the credit score goes down, and then being offered some low interest rates. Biting my fingers nails and thinking on this one.

Can anyone else offer some advise? I have not talk to a mortage loan advisor yet. I think I will wait for 6 months without paying any medical debts.

[marty56]

I can understand about the down payment but why would your credit score go down if pay the medical bills?

Also the mortgage company would know about all unpaid balances and that would either reduce your net income since you are making payments or show risk to them if you are not.

[fishbjc]

I don't know how things are now with mortgages, but pretty tough from what I hear.  I had a $50 collection from medical, of which I had NO idea,  I was declined for refinance of my mortgage until I had that marked as 'paid in full'.  I was told that all collections must be off of the cr.

[SmartCookie]

darrell,

of these 10 open accounts... how many were still owned by the OC? 

Do not pay anything, partial or full, unless it's clearly a PFD.  ALWAYS negotiate a settlement (legally paid for less than full) if possible.

On the one that you got so far, is the OC reporting as well?  Or just that CA which agreed to PFD?  If OC owns it.... hold off on the CA PFD and try to settle with the OC and have them remove the collection.