Impact of collection on mortgage

[Anonymous]

I just posted on the General Credit Issues board about this, but I just got a collections letter for a medical bill (got a bill about 6 weeks ago for hospital trip from 7 months ago, overlooked on our part).  We were planning on buying a house in the Spring.  Are we SOL?  I am so upset about this, I feel sick.  I don't even have the words for it.  I have nothing else negative on my credit, except high uts.  How much is this going to ruin our chances of buying a house???

[ShanetheMortgageMan]

It won't affect FHA, but for other loan programs it would.  Have you tried contacting the medical office and paying them directly, then asking them to recall the collection from the collection agency?  Medical office got pennies on the dollar for selling the collection to the collection agency, you could pay it in full (which I assume you meant to do) and possibly get the collection removed that way.

[Anonymous]

Shane- thanks for responding!  So, it is still possible if I pay the hospital TODAY (which I can do) that I can stop this before it hits my credit?  That is wonderful news!  I was going to do a letter to collections, but this sounds like a much easier options!

[Anonymous]

I just paid in on-line through the hospital billing directly.  This was also suggested on the General Cedit Issues Board.  The account was still open.  I guess I assumed since I got the collection letter, it was too late.  I would have rather done it through a real person, but their office is closed today, and I just wanted to do it.  We will call first thing on Monday morning and ask them to cancel the collection, citing our reference number for the on-line payment.  We will send a dv to the ca as well.  Thanks Shane!

[ShanetheMortgageMan]

Yeah I actually had the same thing happen to me.. I had a bill from one of those ready clinic's, my insurance said they would pay it, but never did... I got a letter from a collection attorney right around the corner from me, I called the ready clinic and paid over the phone, they said they would "recant" the collection and it never hit my credit, I even called the collection attorney up and asked if it would impact and they said no.