is it best to just pay?

[Anonymous]

My credit scores were looking good a month ago and was preapproved for a mortgage, exactly a month later 30point drop. The collection accounts on my report are are due to drop in 2012, the CA has not not updated the report in a years. All the sudden they all update, some even listed "chargeoff" for the last 4motnhs. When previously nothing was listed for those months. In this situation is it best to pay them off? I don't have time to DV and I tried getting PFD, with no sucess.

[haulingthescoreup]

Ouch.

You have just discovered that the credit bureaus sell our reports to collection agencies. There's nothing like a mortgage app to bring the cockroaches out of the closet.

Have you asked your lender? My preference would be to hang tough, and tell them without a PFD that they can go to wherever, but I do understand how important getting your home is.

It's just that once you pay, you lose ALL leverage.

Will the 30-point drop knock you out of your mortgage, or make it unaffordable? I gather that the collections have been there all along.

[Anonymous]

Due to the point drop I know longer qualify. I'm under contract for a house and was suppose to close this month, but due to my score going down, we are trying to push closing up to June, which gives me about 4weeks to increase my score by 25 points at least.

My loan officer pretty much said the samething, to try and get a PFD.

[Anonymous]

Wow, this same thing just happened to me. I applied for a mortgage last Monday and Asset Acceptance updated a paid collection with the date placed in their collection department. This caused a 2 point drop and kicked me out of a score band for the mortgage.I think they are trying to force my hand in paying a collection that they claim I owe to them, but they refuse to validate.

The collection referenced above that is unpaid has a very high balance. I sent them a DV a month ago and they only sent me an invoice from their internal data bank, nothing from the original creditor. These collections are both due to fall off 9/2010 according to my CR, so they can pound sand. I'm not paying them since they're trying these tactics.

Luckily I was only dipping my toe in the water to see what might come up if I were to get a mortgage.  Now I know, and I can recover from anything they throw at me because I have a good 18 month jump before I dive into the housing market. I'm just stacking paper for a downpayment in the meantime.

I'm sorry this is happening, but I believe you will rebound in the next few weeks. Someone mentioned that you can sometimes ask for a PFNR, Pay For Not Reporting, if they refuse to do a PFD. If they don't report it, it seems that it is the same as being deleted, as it is no longer there. Good luck, the gurus will help you. I don't want to tell you anything inaccurate.

[Anonymous]

Haulingthescoreup,  will opting out stop CRA's from selling our info to collection agencies?

Message Edited by educatedconsumer on 05-10-2009 06:04 PM

[nothingman02]

Im not Hauling...But I'll reply anyway

Opting out of CRAs will stop them from selling your CBRs to everybody (not just CAs) yes.

But CAs can still access your CBRs if they have PP. And also, whoever the CRAs have sold you CBRs to, up until the date you opted out, will still have and can still use your CBRs.

But better late than never. I would strongly suggest opting out during credit repair if not forever. 

[Anonymous]

Thanks Nothingman02!