Can someone help me with SOL?..i have read the info..still confused!

[Anonymous]

Ok so I have been trying to figure out which Collections are past SOL...I lived in VA when the Collections were placed on report, now live in MD... can you all tell me what you think? I am cunfused as to when the SOL would be up on these....I looked it up but am still confused!

Collection # 1 : DOFD is 12/2003

Collection #2 DOFD is 03/2006

Also, does anyone one know if medical collections count when you apply for a mortgage? Our middle score is 634 and should go higher because we paid our utilization down from 80% to 1%....

I am scared to wake sleeping giants but dont want to get denied because of the collections any thoughts??

[Anonymous]

1.  VA SOL is 4 years.

http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&thread.id=38198

This link will head you in the right direction to figure out the SOL for your state.  It's one from this site.

2.  Yes, medical collections affect your score.  Pretty much everything you do, does.  If the bill is paid off, follow the HIPPA process to get the collection off of your credit report.  If it's paid for, then there is no SOL for removing it from the credit report.

3.  Do you have any documentation or proof that these medical bills are not yours?  Or that they were paid?  If you really owe the money and want to take care of your financial obligations, then send them payment (directly to the provider, the original creditor).  Send it with a return receipt, or some other way to prove to the mortgage company that it is paid off.

4.  The first one is due to fall off next year -- 7 years, unpaid, on the CR. 

5.  Please keep in mind that creditors, including mortgage companies, are going to look at your attitude regarding bills.  For whatever reason, having two collections, this old, show that you can be stubborn or that you just do not care about paying what is owed.  Most mortgage companies will look the other way..But it's still there...

6.  Write a letter of explanation to your mortgage company and ask for a real person to review your documents and make a decision.  Very often, there is a computer spitting out the decision, the rates, the terms, etc to financial decisions, such as a mortgage, credit card, etc.

[Anonymous]

Thanks for the info. Yes they are mine, and are not paid....I have no problem with paying them off, however I am scared to right before we apply for a mortgage in fear of a score drop. Even if we HIPPA them that is no guarentee.....I think I read somewhere else that you can pay collections sometimes at closing..maybe that would be another option...but I also read, can't remember where, that mortgage companies don't count medical too hard against you..and that doesn't sound right from what I am reading now.....

I want to take care of these, but don't want my score to drop so low we cant get a mortgage............

If the SOL on these in va is 4 years then 1 is past SOL and the other wouldnt be too far behind, so that would mean they couldn't sue me but it would remain on my report still?

[Anonymous]

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fiveinall wrote: 

Thanks for the info. Yes they are mine, and are not paid....I have no problem with paying them off, however I am scared to right before we apply for a mortgage in fear of a score drop.

Don't TOUCH them. They're so old, no mortgage lender is going to ask you to fool with them.

And yes, once you pay them, they'll report as "new" when the status is updated to "paid" and your score WILL drop.

Besides, every LO I've talked to (including here in the forums) have said that medical collections are no big deal. 

Even if we HIPPA them that is no guarentee.....I think I read somewhere else that you can pay collections sometimes at closing..maybe that would be another option...

Yes, IF the lender wants you to. Otherwise, no touchy-touchy until AFTER you've got the keys in your hand!

but I also read, can't remember where, that mortgage companies don't count medical too hard against you

Absolutely correct. Usually, not paying medical bills arises from some stupid glitch with insurance, billing, or some sort of traumatic medical emergency. That's not the same as just being a deadbeat who doesn't want to pay your bills.

At least, that's my take on it.

..and that doesn't sound right from what I am reading now.....

What are you reading now? 

I want to take care of these, but don't want my score to drop so low we cant get a mortgage............

Great ... AFTER you close.

If the SOL on these in va is 4 years then 1 is past SOL and the other wouldnt be too far behind, so that would mean they couldn't sue me but it would remain on my report still?

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Yup. SoL is simply a state-mandated defined amount of time in which the original creditor can seek legal remedy in court for payment of the debt (AKA, file suit and obtain a judgment). CRTP is the Credit Reporting Time Period, which is Federally mandated, and determines how long an item can remain on your CRs.

Two completely different animals.

[Anonymous]

Thank you so much for clearing all of that up! I will wait it out and pay either at the table or after we have our keys in hand!!!!!!!!!!!!!

[Anonymous]

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@Anonymous wrote:
Thank you so much for clearing all of that up! I will wait it out and pay either at the table or after we have our keys in hand!!!!!!!!!!!!!

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De nada, Darlin.

Just remember one thing: If you think there might be more CAs lurking out there, don't forget to "Opt out" with the CRAs. Otherwise, they might let the CAs hiding in the woodwork know that you're not only fixing your credit, but looking for mortgage quotes.

Even though I believe that very few cases of last minute pop-ups on CRs by CAs result in denied loans, it's REALLY stress you don't need!!

Best of luck!! Keep us posted!!