Paying off collection accounts

[Anonymous]

I have several accounts that are in collections.  If I pay them off will it help with getting a mortgage loan?  I spoke with a lender and they said they can approve me if they are paid off but I doubt it is that easy.  If paid off how long does it take for the collection companies to report as paid?  Thank you!

[CyberChick]

It is that easy. If you have the money, make your phone calls and pay. People write about pay for delete, it's worth a try, but I have found that paying will get them removed.  I have paid off all but one collection account. I have read that conventional lenders like paid charge offs. So I paid. It took a month or less for them to update. They have all varying times, but I have seen updates from 3 days to 30 days. Good luck. 

[OmarGB9]

Actually, it *is* that easy, at least as far as taking care of the collections and having that aspect covered goes. Whether or not you do get approved depends on the rest of your profile.

If you can manage to get a PFD (Pay for delete), your scores would be even better. But even just paying will help so the collection can age. 

As for how long it takes to report as paid, that varies. Usually it's within a month, though.

[House2021]

It's been 28 days since I paid one and it still hasn't updated, 26 days for the other, another was paid 3 weeks ago and reduced by the amount paid but does not yet show a zero balance