CA bumping old accounts and dropping credit

[Anonymous]

We've been working hard to get our credit straightened out for about a year. It's mostly medical debt. Nov 30 we got preapproved for a conventional mortgage, a few days ago we finally we to sign contract and we had to get preapproved again (through their preferred lender) and we found out that Dec 10 a CA reported all the collection accounts it held - while they did show up on the reports they hadn't been updated/reported in 2 yrs or so. This caused our already borderline score to drop enough to disqualify us (648 to 634). We're so heartbroken and feel like we've wasted an entire year. We don't even know where to go from here, do we pay off these old accounts (3-5+ yrs old)? We were advised to not pay on these by the loan officer last year since they were so old but now that they're reporting them again it's showing them as new....

[rmduhon]

Unfortunately this seems to happen often when someone is trying to get a mortgage. Paying them (hopefully with a PFD so they'll get removed) is the only way to keep them from updating (after they update to paid of course) and appearing to be new.

[RobertEG]

Reporting by a debt collector does not make the debt "new."

It makes the time of delinquency longer.

It is the increased time of delinquency, similar to an account reported as 120 late after a 90-late, that is viewed as creating the impact on scoring.

Debt collectors must cease updates once the debt is paid.

The DOFD remains the same, regardless of when they report, so the collection has a date-certain exclusion date of no later than 7 years plus 180 days from the reported DOFD.

[Anonymous]

The same thing happened to me a few days ago. I disputed an account. It came back verified and updated the charge off date to Jan 2017. It dropped my score from 648 (which was 2 points away from our needed mortgage score) to 629. I've been working on credit for the last 2.5 years just to get it to 650 only to be 2 points away then BAM updated reporting. If I had realized it would do that I would have never disputed that account. It is a sold charge off with a 0 balance that hadn't reported in months. The account wasn't opened by us, which is why I went ahead and disputed it hoping this would be the magic time it would go away. Instead I feel like I made a huge mistake.

I wish I had some advice for you. I just know how heartbroken you are feeling right now. I thought for sure we would be finishing up our paperwork this week but it looks like we will be waiting until the score recovers

[Anonymous]

I'm sure they did this on purpose to try to get us to pay them, most are approaching in the 4 yr mark for when we can't be sued anymore and many are 5-6 years old. It's not that I can't/won't pay my debts it's just that I was advised not to. I hate that it came to bite us in the butt now. I guess PFD is the only way to go but I've heard that this company is difficult to work with.

[rmduhon]

What is your state of residence?

[nmjacobs]

Google whychat HIPPA process. These might not need to be paid and could get deleted.,