Help or advice on collection account with FHA loan

[Anonymous]

I recently got pre-approved for FHA loan but my interest is crazy high 5.6 due to capital charged off account but it was settled. I attempted to ask capital one for pay for deletion but it didn't work. They told me it will be report as settled but was indirectly told I can dispute the charged off account (possibly have it removed from credit report ) . Don't know if I should even take that action since the account is settled. Should I go ahead and dispute ?

Another collection account that just hit my credit report which is Midland funding for 2500 which I was told by my loan office I don't need to pay to get the FHA loan . I was wondering if I should settle with Midland funding ? Would settle with them help boost my credit report and help me get a better interest since my interest is 5.6 ( which is crazy high). Also, I heard from people that Midland loves to sue, so should I call and ask for a settlement or not? I don't mind if they settle for 1100 instead of 2500 but I heard Midland is tough to deal with. My questions ...

Should I pay or settle with Midland to help me get a better interest rate for my FHA loan ?

If so , does anyone know how to get Midland to agree to 60% off discount settlement. ?? Thanks for any advice(s) appreciated the help in advance .

[dynamicvb]

I haven’t experienced it first hand but other have reported that midland will automatically delete if the debt is a couple of years old. Do a search  in the rebuilding forum and you will find quite a few threads.

how old are these? And where are your scores right now? 

[Anonymous]

Score was 680 then dropped to 620 bc capital one charged off but settle then went back to 640 and Midland funding hit and got score down to 590. Can't believe Midland funding made it dropped so bad . This was an old Dell credit card that was sold to Midland . Last deliqu for the payment was 1 year and 5 months so most likely if I paid Midland I doubt it will get drop from credit report but I was wondering will it help my credit score much at all if I settle this account with Midland ?

Another thing is I'm worry if I don't settle Midland will sue but Im in Texas so I heard in Texas collection can't garnish your wages? What do you guys think I should do to help my FHA interest ? Settle or save the money ?

[CreditInspired]

I really do think you should follow your LOs advice. Also, lenders don’t like disputes on CRs so, I don't think disputing is a good idea.

I was around when mortgage loans were double digit so I chuckled at your phrase 5.6% is crazy high.