How should I pay off these collections...need tips!

[Anonymous]

We were pre-approved for a USDA direct loan!  

Since our credit score is under 640 we were told we have to pay off 5 open unpaid medical collections before proceeding to the next phase. The collections total $704 and we are not going to let that stop us from getting a home! I have all collection companies names and phone numbers but how should I go about getting them paid quickly? When I call what should I say to pay a lesser amount and have proof quickly that these have been paid? At this point we don't want to dispute anything because that takes too long...we just want to start looking for a home ASAP! 

[RobertEG]

If getting the debt satisfied promptly is your primary objective, sending offers to pay for less are negotiation offers to which they have no obligation to respond.

If you an pay the full amount, making contingency offers that require their approval prior to payment, such as accepting less than the full amount or a PFD, may slow down the process.

I would begin by asking your loan officer if a written statement from the debt collector of receipt of payment will be sufficient of their approval purposes.  If so, I would call the debt collector, explain your situation, and ask if they can send an immediate statement to your upon receipt of your payment that acknowledges payment of the debt. 

[Anonymous]

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@Anonymous wrote:

We were pre-approved for a USDA direct loan!  

Since our credit score is under 640 we were told we have to pay off 5 open unpaid medical collections before proceeding to the next phase. The collections total $704 and we are not going to let that stop us from getting a home! I have all collection companies names and phone numbers but how should I go about getting them paid quickly? When I call what should I say to pay a lesser amount and have proof quickly that these have been paid? At this point we don't want to dispute anything because that takes too long...we just want to start looking for a home ASAP! 

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Be careful in paying them without a PFD.  If these collections have not updated with the CRAs in a while, when you pay them it will update to a current date making them look new and your score will suffer.

If they are validate, accurately reporting collections, there is nothing to dispute.

[AndySoCal]

You can try to contact the orginal creditor IE the place where you received the service. Ask them if they will pull the account from the collection agency in exchange for payment in full similiar to a PFD.  The creditor has sold the debt this will not work also they may not be able to od this. If this fails try for a PFD.