Trying for Usda Mortgage- Collections are killing us!

[airedna3441]

Hi to all newbie  here needs help!

   My husband and I are trying to get our scores up to qualify for a Usda mortgage loan ( need 620 median ) or a fannie mae homepath loan (need 660 median)  acorrding to our Scorewatch report we currently have hubby's at 627 and mine at 644, (We started at 603 for him two months ago) we have paid off his credit cards in full and also the ones that are mine that he is an authorized user, leaving me with some high balances on the ones just in my name that we are working on to get below a 75% utilization to  get up my score.., some of the ones that we have paid offt havent been reported yet to the Credit bureaus, yet but should within the next couple of days.

  Hubby also has 7 medical collections  that I would like to try to Do some PFD's  from what I read will also up his scores once I can get some of them off  his credit reports but what other things could I do to give him a boost the fastest? I'm not sure as to where to go from here and we really want to pre qualify soon so we can get the ball rolling on getting into a house. Anybody have any ideas on what we could do or am I on the right track so far?

[guiness56]

I wouldn't let all of his CC report a 0 balance.  FICO doesn't like that.  Have one reporting at 9% or below.  Then pay in full before the due date to avoid interest charges.

Depending on what his utilization was before you paid them off it is possible his score has risen enough to meet the median score requirement.  Utilization is the fastest way to raise your score.

I would continue with the PFD for the collections also.

[airedna3441]

Utiliization was at 100% on one 1750 down to 0, then the other  three were 751 on 1550, 458 on 900, and 298 on 300 all of those we paid down, as for the PFD should I start with the smallest ? And is it even do-able do include three accounts in one letter as they are from the same place?

$417 AR Resources

$55 AR Resources

$ 552 AR Resources

$429 Financial Credit Services

$125 Finacial Credit Services

$285 Merchants Associated Collections

$5631 Law offices of Mitch Blum ( medical from  ER visit)

[guiness56]

You can put them all on one letter, yes.  You may even be able to do a settlement amount on all three with a removal.  How old are these?  How old are all of the collections and what is your state SOL?

For the utilization, were they all paid to 0?

[airedna3441]

They vary from 2008-2010, with one of them just being reported as of this year from 2 years ago whicjh is crazy ,  and as for utilization they were all paid down to 0.  A sheffifs officer that comes into my diner where i work said that he used to be a loan underwriter and he gave me an example of a dude that just disputed his collections and most of them couldn't validate the debt and they were removed from his credit report. Could that possibly work and if it doesn't then do the PFD?

[guiness56]

Disputing accurate information is a violation of the TOS of the forums and I don't recommend it anyway.

Have one of his CC report at 9% or below.  FICO doesn't like all CC balances to be 0.

If you know they (collections) are outside of your states SOL, send them a DV letter first.  Then if they validate, send them a PFD.

[airedna3441]

SOL for Florida medical debt is 5 years, does the SOL start from the date it  says opened or assigned on Credit report?

$417 AR Resources

-opened Dec 2008 First reported 2009 on record till 3/15

$55 AR Resources

opened dec 2008 first reported 2009 on record 3/15

$ 552 AR Resources

opened 2011 reported Sept 2011 on record till 12/17

$429 Financial Credit Services

opened 8/11 first reported 10/11 on record till 12/17

$125 Finacial Credit Services

opened 12/11 first reported 01/12 on record till 12/17

$285 Merchants Assoc Collections 

 opened 01/11 first reported 03/11 on record till 06/17

$5631 Law offices of Mitch Blum ( medical from  ER visit 2011)

Opened 06/13 First reported 2013 on record till 12/17

Couple of questions , some of these from 2008 are coming up on five years, so I think I'm good on those, but the last one for the $5631 how can it be that Hubby was in hosp in 2011 and they're just now reporting it as a collection? Looking at the other ones they were reported just a month or two after, so something seems fishy with this one, what can I do?

[guiness56]

Most state SOLs start with the DoFD. 

There is no law that requires any debt to be reported within a specified time.  So it is possible for them to have not reported it unti they did.

Have you tried to contact the hospital and ask about financial assistance in paying the bill?  Sometimes the debt can be wiped out completely.  I wouldn't worry about the time that has gone by, I would do it anyway.

[airedna3441]

yes we contacted the hospital and said that since the account had been sold there was nothing they could do.  DoFD? I'm confused about that ,Could that be the date he went in? we never made any payment arrangements or contacted them in anyway.

[guiness56]

DoFD - Date of First Delinquency.  For medical it can be the date of service of 30 days after the first bill was sent out.  Depends on your state laws.