Medical Debt and Mortgage Refinance

Anonymous · ‎07-20-2012

When attempting to refinance our mortgage, we learned that there is a medical bill that is appearing our credit report which has dropped our credit score from 720 to around 660. The debit is from last year and should have been covered through our insurance. Since it has been turned over to a collections agency it appears on our credit report.

We are wondering what our options are at this time. Our ultimate goal is to refinance at a preferred rate, but do so while rates are so low.

Thanks in advance for your help.

AndySoCal · ‎07-20-2012

Talk to the provider of the service. Offer to pay in full and see what they will do about the account in collections.

FICO Scores XPN v8 805 V2 831 (SDFCU) TUC V 8 800 07/25 EFX Bankcard v8 822 EFX FIC0 v8 808 Vantage score 4.0 817 via JC Penney
JC Penney 10/2008 4,700 US Bank Cash 08/2010 12,000 Citibank Custom Cash 5/2015 14,100, State Dept. FCU 06/2023 30,000 02/2024 Redstone FCU Signature VISA 10,000 08/23/2024 Commonwealth Credit Union 15000 07/25 Walmart One 5000 12/04/25
Banks and Credit Unions: Lafayette FCU Fortera FCU State Department FCU Redstone FCU Hughes FCU Commonwealth FCU Veridian Credit Union Utah Community Credit Union
My personal blacklist Axos Bank, Bank of America, Synchrony Bank Capital One TD Bank BMO Langley FCU Paypal Barclays

Booner72 · ‎07-21-2012

Dont pay unless they agree to delete it. It's called 'PFD - (Pay for delete) - you would work with the collection agency reporting to do this.

OR - go back to the medical provider and your health insurance company and see if they can fix it on their end - either way, you are going to have to pay it.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720

cassie3783 · ‎07-23-2012

If it should've been covered through your insurance, contact your insurance company and find out why they did not pay this bill.

If it turns out they should have, in fact, paid this bill, it's possible your insurance will go ahead & submit payment to the original creditor.

IF this happens: wait until you get confirmation from your insurance company that they have paid the original creditor. Contact the original creditor to verify they've received payment, then ask them to have the account removed from the collection agency.

A lot of people will tell you this above scenario won't work, but, FOR ME, it did.

I'll also e-mail you add'l information regarding the HIPAA process for medical bills. This process ONLY works if you pay the Original Credit, NOT the collection's agency.

Good luck!