Good Morning,
To cut the long story short - I applied for a home loan purchase and will be approved if I settle one collection account currently reporting. The debt is mine an account that is over 5 years old and balance due is 1,500 for student housing. The loan officer said to try to "settle" with them for less. What do you advise I do, how much do I offer them for a payment? Anything I should know before I make the phone call to the collection agency!?
Help please! 
I would see if they will accept a PFD, it will boost your scores higher if it is not there at all. Still try to offer less since isn’t over 5 years old. That’s just my 2 cents..
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@Anonymous wrote:Good Morning,
To cut the long story short - I applied for a home loan purchase and will be approved if I settle one collection account currently reporting. The debt is mine an account that is over 5 years old and balance due is 1,500 for student housing. The loan officer said to try to "settle" with them for less. What do you advise I do, how much do I offer them for a payment? Anything I should know before I make the phone call to the collection agency!?
Help please!
I would just try requesting a PFD. If that fails, just pay the account in full—it will leave a scar on your credit report for years to come, but in a manual review, a charge-off or a collection paid in full looks much better than a settled one because it shows that the lender you had the charge-off with did not take a loss! 