My husband and I are in the early stages of preparing for the upcoming VA loan process. I have some aging lates on my account, one should fall off very soon and the other is more recent which I'm trying to GW from Toyota. I also have a few collections, most unfortunately.
Two collections (out of 3 total) are medical, one of which is closed as "settled for less than owed" and the other is open with a balance owed. I've send PFD letters to both asking to pay (or pay the remainder) in return for a deletion. I haven't heard anything back from these but if that doesn't work, should I follow up with additional PFD requests or pay it and request a GW? How many PFD do people normally send if the first is ignored?
The last collection I requested a PFD and they were quite nasty about it. I asked them to respond by letter and they called and she said there's nothing to respond to so I'm not sure what to do about this. I called the original business provided the informaton to the CA and asked if they could repurchase the debt (long shot) and she said it was explicitly against their contract. So now I'm not sure what I should do with this one.
My current scores as provided by my credit union are EQ 577 Ex 544 and TU 610 and husband's are EQ 620, Ex 603 and TU 638.
My questions are:
1. Has anyone had success in getting a PFD or GW letter from a CA that started off quite stubborn? This is a local CA, not a big national one.
2. Will VA approve a loan if there are collections on my credit even if PIF? The most recent has a DOFD of September 2010 but was reported to CA May 2012.
3. Will reducing my utilization in addition to paying everything on time between now and next May get me above a middle score of 620?
Thanks so much for any insight anyone can provide. Trying to wade through everything and see how it fits my situation is making my head swim!