@Anonymous wrote:
UGH...I am so frustrated. I have been working on paying off my collections (most will delete) and charge offs and I had one from 2016 for SpeedyCash for a $500 loan that I paid back but of course bc they charge so much in interest, I quit paying on it once I realized it was increasing by the day with 500% interest and would take forever to pay them back. Now here it is March 2020 and they sent me to National Credit Adjusters collection agency. I have been working so hard to pay the other items off and increase our mortgage scores so we can hopefully qualify for a home this summer... only to now have a new collection hit! UGH!!
I hope they will settle for way less of the balance of $1446 since the loan was only $500. But I'm not reaching out to them until next month when I have enough cash to settle and hopefully get it removed as it never happened.
As part of my personal rebuild strategy, I will always immediately dispute a collection that shows up. (sometimes these things pop up at the most inconvenient time; point increase, reduction in utilization etc). Now, disputing may not be the best route for you, based on your cirumstances and the type of collection agency. Some agencies are very persistent. I believe FHA will still consider approval with a collection.
Decide what your course of action will be after your research. If, however, you decide to dispute, there are few things to consider; 1. has the CA included the original creditor's info on your credit file? If they did not, you could argue that you have never had a relationship with them, nor have you ever signed an agreement or contract with them, indirectly questioning their right to collect the debt. (You are not denying the debt is yours, you are questioning their right to collect.) I once had a collection show up with an original creditor info. The amount owed was inaccurate, so I disputed based on that and, the fact I had no relationship - ever! - with the CA. Got lucky. 2. You could dispute based on inaccuracies for this CA . 3. email this dispute, certified mail return receipt (CMRR). 4. If leaning towards settling, decide what the most amount you will pay and offer PFD. Offer less than that, so that you have room to negotiate. Make sure they are on a recorded line and get them to send something in writing regarding the PFD. I feel your pain, but there are solutions.
Lastly, an FHA would likely be the route for you.
Click here Can Collection Activity Hurt Your FHA Loan Chances?
"FHA loan rules in HUD 4000.1 include guidance for the lender on what to do when reviewing such credit report data and borrowers should know that not all negative credit information is equal to an automatic rejection of your loan application. Collection accounts, old late/missed payments, and other issues may or may not have an effect depending on a variety of factors including the age of the negative data."
Be patient and best of luck!
