Collection disappeared and then reappeared.

[Anonymous]

Hi I’ve been lurking here for some time and obtained some really valuable info. But I’m hoping someone can help me with a specific question. We are rebuilding and and only had one collection on my husbands credit ($500 to Verizon) which we plan on paying. Well today a collection for 23k showed up from a private school (long story). This collection was on his account 4 months ago and disappeared. Today it came back. So I’m a bit confused as to how old this collection will be? From the date it’s reported or date the account was closed. It only dropped his score 3 points. We are trying to get things lined up for a VA loan but I’m afraid this will be what keeps us from doing it sooner rather than later. My husband has already been speaking with a VA lender and their only suggestions were 1. To ask an old account that’s. Even PIF to remove lates. Those were at least 2 years ago. And 2. Lay down BofA card from $450 bal to $100 bal. but now this new “old” collection has appareared.

[Anonymous]

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@Anonymous wrote:
Well today a collection for 23k showed up from a private school (long story). This collection was on his account 4 months ago and disappeared. Today it came back.

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Hello TiredMomof3! Welcome to the forum!

One posibility is that a new collection agency bought the debt. Then there was a sort of limbo period when the debt wasn't being reported. But now the new collection agency on it.

It also might be helpful for us to know where you're seeing this information. It's also possible that if it was somewhere like Credit Karma, you might not have been getting complete information, and the collection never really disappeared from the actual report.

At any rate, good luck with your scores and the loan!

[Anonymous]

It was Credit Karma! Equifax but not Transunion. When the VA lender pulled our report he didn’t mention it. And the score dropped 3 points when it re appeared. I just thought that was so odd.

[VALoanMaster]

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@Anonymous wrote:
Hi I’ve been lurking here for some time and obtained some really valuable info. But I’m hoping someone can help me with a specific question. We are rebuilding and and only had one collection on my husbands credit ($500 to Verizon) which we plan on paying. Well today a collection for 23k showed up from a private school (long story). This collection was on his account 4 months ago and disappeared. Today it came back. So I’m a bit confused as to how old this collection will be? From the date it’s reported or date the account was closed. It only dropped his score 3 points. We are trying to get things lined up for a VA loan but I’m afraid this will be what keeps us from doing it sooner rather than later. My husband has already been speaking with a VA lender and their only suggestions were 1. To ask an old account that’s. Even PIF to remove lates. Those were at least 2 years ago. And 2. Lay down BofA card from $450 bal to $100 bal. but now this new “old” collection has appareared.

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The collection account is only allowed to report on your credit for 7 years from the original delinquency of the original debt, or the date of the first missed payment after which the account was no longer brought current.

A lot of collection agencies will illegally re-age a debt to keep reporting in an attempt to collect it.

I would also get a 2nd opinion from another lender. Late payments from 2 years ago typically will not have much of an impact on your scores so you need to look at other ways of boosting your scores. 

[Anonymous]

Hi There! Welcome to the forum! Do not feel scared to ask questions, many experts in credit are on this website that love to help! 

Verizon is a very easy one to negotiate with on the debt ( at least the collector is!). Since I understand you are trying to get a loan I would get that, and the new on removed from you're report ASAP. Ask Verizons debt collector ( if they use one) to get a pay in full settlement offer. This offer is typically a lot less than the actual balance. Ask them to remove late fees in their payment settlement offer. The only negative is that you pay it off all at once. But the benefit is just the savings in the long run. Debt Collectors buy the debt from the company for 40% less. Its easily negotiatble. 

As mentioned by the you, I would personally ask them to drop them fees. Say you are a military family, and attempting to take advantage of VA Benefits. Being honest with these indivduals works really well. They hate excuses.  Nobody has 23,000$ on them. That is half of what I make a year.  

Best of luck in this endeavor.