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This dormant flower is ready to be replanted

Community Leader
Legendary Contributor

Re: This dormant flower is ready to be replanted

With the goal to purchase a home, keep the unpaid collections in mind.  They will most likely have importance to the prospective mortgage lendor.


Certainly, unpaid delinquent debt that is still within SOL represents continued peril of the prior creditor obtaining a judgment for its repayment, possibly leading to attachment of assets as satisfaction of any court judgment.  A real concern for any new, prospective creditor, as it might affect your future risk in repayment of their loan.


Some mortgage lendors have a standard policy of requiring that any old, delinquent paid be paid as a pre-condition for their approval, regardless of SOL status.


That, of course, requires them to obtain knowledge of any old, unpaid delinquent debt.  Exclusion of reported items from your credit report, such as old delinquencies, charge-offs, collections, judgments, etc., certainly removes their opportunity to become aware of unpaid debt via a simple pull of your CR, but that might not be the only source of their awareness.  Affiliate sharing of information, or even a simple question in your application whether you have any old, unpaid debt, might lead to their awareness.

It's always best to go into a mortgage app process free of  unpaid, delinquent debt.  If it's still out there, you take your chances that it might bite you.


Message 11 of 13
Moderator Emeritus

Re: This dormant flower is ready to be replanted

I believe there's another point on this, maybe someone can comment on this.   If the loan is for over 150,000 they can pull a more detailed report that would still list some of those that were aged off.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 12 of 13
Community Leader
Legendary Contributor

Re: This dormant flower is ready to be replanted

Yes, none of the credit report exclusion periods in section 605(a) are absolute.


FCRA 605(c) enables a creditor to receive a full credit report, including any and all prior derogs, if they are inquring with regard to a consumer initiated request for credit or insurance that involves a principal balance of $150K or more.

However, the creditor must make a specfic request for such a full CR.  I am aware of a few situations where they have made such requests, but for the most part, it is not standard practice.  I would opine that the chances are very, very slim.

Message 13 of 13