Advice needed to get a collection removed ASAP

[907grown]

So RobertEG what do you suggest? Are you indicating that no matter what I do I may never buy a home? I completely understand the concept that the debt still exists, I even stated above that I will be willing to offer 10% on debt that is greater then 7 years do, this seems as if they won't accept that offer I will never buy a home. The current collections reporting are holding my score way down, the last time I had a slow pay was 26 months ago.... I need to call the lender that I want to use and talk to them about what to expect.

[RobertEG]

No, I'm not suggesting a perpetual doom.

Once credit report exclusion occurs, you are given benefit of score recovery.  Thus, to the extent that a prospective creditor relies on score for qualification, you can begiin securing better and better credit.

The issue with high princiiple requests for credit is that lendors usually dont rely only on your current credit report, and thus credit score.  They ask for income, all debt to income, etc., that are not part of credit scoring per se.  That could also include old, unpaid delinquent debt.  If such debt remains, you will need to answer some questions.

The extent to which that could be forgiven of be a show=stopper is up to the lendor.  Once past SOL, for example, they no longer have the concern of being third or fourth in line should legal action be required down the road. 

Bottom line is that unpaid, delinquent debt will always remain a potential factor, but the degree to which any individual lendor may make it an actual or primary factor is totally up to them.

[Anonymous]

There is no legal recourse, such as they cannot sue you over it but, unpaid debt is unpaid debt.  It never goes away and is still owed.

[wHiTeSoL]

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@Anonymous wrote:

There is no legal recourse, such as they cannot sue you over it but, unpaid debt is unpaid debt.  It never goes away and is still owed.

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Yes and if the lender is ok with it being unpaid becuase it is old then yay! If not they may require you to deal with it before you can move on. Just a heads up.

[907grown]

Well, considering all this information, I think that I will go back to the collection agency, offer 20% on old debt if they will delete recent collections and if they say no, then offer 10% on old debt to have it settled. I can't imagine they wouldn't agree to take something on debt that they have no legal recourse to collect. They have not and do not hound me over this debt. I think the last time I heard from them was in 2004. I don't want to be dishonest with my lender, so I want to know that when I sign the form saying there is no outstanding debt, I want to do it with a clear conscience .....
After I get that done, I will go to the lender and talk to them about the situation.

[Anonymous]

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@wHiTeSoL wrote:

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@Anonymous wrote:

There is no legal recourse, such as they cannot sue you over it but, unpaid debt is unpaid debt.  It never goes away and is still owed.

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Yes and if the lender is ok with it being unpaid becuase it is old then yay! If not they may require you to deal with it before you can move on. Just a heads up.

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Yes, I know.

[Anonymous]

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@907grown wrote:
Well, considering all this information, I think that I will go back to the collection agency, offer 20% on old debt if they will delete recent collections and if they say no, then offer 10% on old debt to have it settled. I can't imagine they wouldn't agree to take something on debt that they have no legal recourse to collect. They have not and do not hound me over this debt. I think the last time I heard from them was in 2004. I don't want to be dishonest with my lender, so I want to know that when I sign the form saying there is no outstanding debt, I want to do it with a clear conscience .....
After I get that done, I will go to the lender and talk to them about the situation.

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The lender may not make you pay it.  It depends on their criteria, age of the debt and the amount.

[RobertEG]

That would certainly be prudent.

Just one suggestion.  Since any satisfaction of the debt wont show in your credit report as paid after CR exclusion of the collection, I would make sure to get a letter from them stating that the debt has been satisifed, which could become of future use should anyone ever question the resollution of the prior debt.

[907grown]

So should I see the lender first? I would need to go to the CA and get a print out of the old debts, dates, amounts, take that to my lender and say what do I do? Can the lender answer this or is it the underwriter who decides that, fairly unsure of what an underwriter is, but I was under the impression that they make a lot of those type of pay it off/ don't worry about it types of decisions.

[907grown]

Would presenting this question to a lender be part of the lender shopping process? Does the lender usually disclose their criteria just by asking?