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Does paid status of collection matter?

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tsever01
Valued Member

Does paid status of collection matter?

Will it make a difference to an under writer if you have a paid collection that says that it is "settled" rather than "paid in full"?  I am hoping to apply for a USDA loan very soon.

Message 1 of 5
4 REPLIES 4
JM-AM
Valued Contributor

Re: Does paid status of collection matter?


@tsever01 wrote:

Will it make a difference to an under writer if you have a paid collection that says that it is "settled" rather than "paid in full"?  I am hoping to apply for a USDA loan very soon.


It depends on the UW and or policies.

 

You would prefer it to say PAID IN FULL, but in reality settled should be surfice with USDA UW.

Good Luck
May all your dreams and wishes become a reality!
Message 2 of 5
Booner72
Senior Contributor

Re: Does paid status of collection matter?

See if they will delete if you pay the rest.

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
Message 3 of 5
boomhower
Valued Contributor

Re: Does paid status of collection matter?

Settled is good enough for the vast majority.  What matters is that it is taken care of and a judgement and resulting lein on the property aren't concerns.

Message 4 of 5
mkm77
Regular Contributor

Re: Does paid status of collection matter?

I work for a Mortgage company and it all depends on what desktop underwriting says--Du= Fannie Mae or DO is Freddie Mac. The first thing we do after pulling credit is run a file to see what is required. There are various factors that go into this.

Message 5 of 5
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