Well I finally heard back from the processor with the conditions. All of them were pretty basic, a few random letters, docs I've already provided, etc. EXCEPT for one big one: they want me to provide payoff statements for two collections and one charge-off that are good through my estimated date of closing.
One collection is small and about 2 years old, and I'll just pay it. Whatever. The charge-off is going to fall off my report next month so I am hoping I won't have to do anything about it but it's $300 so worst case, I pay it. Annoying since I NEVER had an account with this company and have spent years trying to get this removed, but I'm not going to wreck a mortgage over $300.
But the major issue is the last collection. It's 6+ years old, outside the SOL in my state, and will fall off my reports in March. It's also 16k. It was a 3k debt from an old landlord that inflated to 9k magically when they sent it to collection, and has risen to 16k from interest and fees in the years since. I'm categorically not going to pay 16k to make this mortgage happen when if I waited a few months, I could get a mortgage without paying a dang dime of that 16k. They've never taken any collection action whatsoever and now it's too late... it's just a matter of waiting for it to fall off.
I don't know for sure whether I HAVE to pay it off to close but requiring payoff statements sure implies that. I've had this one collection as the top of mind issue all along (other than DTI from student loans), and I am very frustrated to have it pop up as a condition now. I technically could pay it but that begins to seem pretty absurd, especially when my local market went from hot to stalled out over the last year. Odds are this builder will STILL have homes to buy in March when that debt is off my reports. The only problem would be that I have to either renew my lease 1/31 or move into temp housing.
Argh. So frustrated by this. This is why I wanted to see the conditions!!
