Medical collections. 6 months out from closing

[Anonymous]

I will start of by saying this is a legitimate debt for just under $500 I completely forgot about. I fully intended to pay it but with a new baby and returning to work being understaffed it slipped my mind and I am kicking myself for it. Everytime I got the bill I told myself “remember to call them this week” but I would always remember to call after hours... which I know matters not. FWIW I did try to use thier online system once after hours but got an error message which is why it meant I had to call.

Anyway we signed on new build with an anticipated closing date on March 2019. Today I get an alert this medical debt (now with a collection agency) from my oldest son visiting urgent care last year popped up on my report. I could swing it and pay it all today if need be. I suppose I need to alert my loan officer, but I’m curious as to how this will impact us being so far out.

I’m kicking myself bc I kept reminding myself mentally to take care of it and typically I have some down time during the day to think about personal business matters, but in the past few months I’ve been so so busy. With both kids and work. Give me bad news, good news it’s after hours and there’s nothing I can do now so I’m stress eating and googling like crazy.

[Jnbmom]

Most lenders require collections be paid. Is this your only negative, if it is you could see a significant drop in your scores. 

I would take care of this ASAP, you can try to get them to PFD, if not pay and then start some GW letters. 

In my own experience I have found medical collections much easier to get deleted. 

[homeloanexpert]

First, your LO is your Preacher. You need to spill the beans so you can all do damage control. Not next week but today. That being said, I have decades of experience dealing with borrowers in your predicament. First recommendation is to pick up the phone and call the original service provider and tell them you never received any bill(s) in the mail and are very upset. Know that there are new laws on the books that regulate timely billing by medical providers. You can go into details about how they billed the insurance company if you want, but if it was me I would offer to pay the collection(s)over the phone and then take it up with your insurance company.

After you pay the original service provider the collection can be deleted. I tell everyone who applies for a  mortgage with me on a new build, do not fall asleep at the wheel. Pay your bills on time, don't let a single medical bill slide by you, and fly low and avoid the radar. Meaning don't apply for any new credit unless I tell you to, don't move money around without telling me, and let me if any think happens in your life that you think could remotely affect this loan like a job change. Enough of my rambling. Hopefully this helps.