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Collection Letter Before Closing - help!

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Collection Letter Before Closing - help!

First time on here and first time home buyer...I posted this in a different thread but really would like some feedback. I am such an anxious person and this is killing me!

I am set to close this Thursday, Nov. 10th at 11am. I never thought this day would come!

I had previously been in contract with a home from May-August. It was an FHA 203k loan that fell through one week before our close date due to a low appraisal. I was completely heartbroken and devasted!! Two days after I signed my termination letter for that contract my neighbors approached me and said they were going to be listing their house and asked if I would want to look at it. I had ALWAYS admired their home!! Long story short - I am set to close on that house in 3 days! Doing conventional this time around too!

One thing that has been causing me restless nights recently....I picked up mail from my parents house last week (I havent lived there in 7 years and never get mail there so this was odd!) It was a collection agency stating I had 30 days to respond regarding a collection from when I was in grad school (I did not have loans for this). It just so happens that the 30th day is the day I am set to close. I have fought to have this collection removed 3 times from my credit report; they remove it each time only for it to resurface about a year later. I received my clear to close last Tuesday, but I know they are still confirming some last minute things because Friday they asked for a phone number to confirm my employment again. I also sent a certified debt validation letter Friday to the collection company. I had to call them for my reference number - the man I spoke to kept saying it was an open account and it took him a while to provide me with the number. (I never said I owed the debt etc. except that it was paid years ago directly to the university) It is a significant amount that I cannot pay at this time.

What are the chances this derails my loan?? Any insight or suggestions?? Credit was hard pulled by mortgage company on 9/7/16. I cannot go through a loan falling apart again - once was enough!! I truly thought this was settled.
7 REPLIES 7
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Re: Collection Letter Before Closing - help!

Update: I just received an email stating that they have not been able to get in touch my employer to verify employment - they asked for me to have HR call them. I did not see any other conditions listed in the email. I am hoping that means they already did my final credit pull.
Message 2 of 8
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Senior Contributor

Re: Collection Letter Before Closing - help!

Did you close?

Message 3 of 8
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Re: Collection Letter Before Closing - help!


@IOBA wrote:

Did you close?


I am curious a well.

Message 4 of 8
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Re: Collection Letter Before Closing - help!

I did close!! I didnt pull my credit a second time and that "collection" has not hit my account yet. I am so sick of dealing with this same debt I'm hoping the debt validation letter I sent finally resolves it.

But again - yes, I did close!! Finally!!
Message 5 of 8
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Senior Contributor

Re: Collection Letter Before Closing - help!

Congratulations!!!

 

As for zombie stuff...I hear you.  I have one from 1996.  Back then we wrote checks.  I wrote a check to the company.  They cashed it.  Then a year or so later, they sent me to collections for the bill. For years, every single collection agency that contacted me, I sent a copy of the bill and a copy of the cashed check to them, along with a letter saying there was no valid debt since the company had cashed the check.  I would also include copies of letters that were sent to the previous CA's.  Each CA would then send the debt back to the OC.  And the OC would go find another CA.  As recently as last year, I was still getting letters trying to collect on an invalid debt.  *insert eye roll*  Now I ignore them.  It was NEVER a valid debt.  It was sloppy book keeping on the store owners part.  I mean seriously, I am in store, I buy some computer parts, I hand them a check, they write paid on my receipt, they cash the check, the check cleared...how on earth would I owe them money???  But this stuff happens.

Message 6 of 8
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Super Contributor

Re: Collection Letter Before Closing - help!


@msal218 wrote:
I did close!! I didnt pull my credit a second time and that "collection" has not hit my account yet. I am so sick of dealing with this same debt I'm hoping the debt validation letter I sent finally resolves it.

But again - yes, I did close!! Finally!!

fyi... mostly for everyone else reading. 

 

they got an update to the credit report.... it just wasnt a hard pull

 

Retired Lender
Message 7 of 8
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Super Contributor

Re: Collection Letter Before Closing - help!


@msal218 wrote:
I did close!! I didnt pull my credit a second time and that "collection" has not hit my account yet. I am so sick of dealing with this same debt I'm hoping the debt validation letter I sent finally resolves it.

But again - yes, I did close!! Finally!!

COngrats on your new home.

Message 8 of 8
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