Medical debt in collections, trying to get a mortgage

[becker32]

My husband and I are trying to get a mortgage pre-approval to start the process of selling our house and buying a new one.  Since we purchased our current house we have had some medical debt go into collections.  All of our other credit accounts are good and current, the only issue is the medical debt in collections.  We recently applied for a mortgage and were told that our scores weren't horrible (650ish) but that we first needed to pay off the collections to increase our scores and then proceed with the mortgage process.  We were told that about 90 days after paying off these collection debt in full that our scores would start to go up.  In my own research I have been doing online I have read several articles that say the opposite in that while paying off the debt is good, it wont increase our scores.  I want to pay off the debt.  It is only about 2 years old and I don't want to leave it out until the 7 year statute of limitations, but I also want to do what is best to get a mortgage.  In your experiences, would it make sense to pay them all in full and wait the 3 months and then go back to the bank we applied at, or would you suggest getting another opinion from another mortgage lender?  Have you ever paid off a collection accound and had it boost your credit score?  Thanks in advance for your feedback.  I have no idea how to fix this mess we are in. 

[Whitneyy]

Hello!

Only way your scores will go up is when you pay them and the collection agency deletes them. So before you pay them, see if the collection agency will agree to that.

You can also google the HIPAA method, it can't be discussed here but you will find helpful information regarding your medical debt.

Good luck!