Anything that is derog and updating monthly is what you go after first. The OCs are not going to grant a PFD, PFD is geared towards collection agencies. Stuff not updating that is derog is actually helping your Fico and the advice I normally give on those is to do nothing till after the mortgage pulls then settle them.
@Ruby111 wrote:Thank you for the info, it was very helpful as we're still figure out how this all works. On the derog marks, does it make sense to pay the accounts that have not gone into collections, before paying the collection agency accounts? (all pandemic related debts) Thank you in advance for your advice!
If updating monthly then yes take care of them first even before those updating monthly with CAs attached. Be aware that nothing pulls collectors out of the wall more than a mortgage pull, these guys typically wait until someone goes to get a mortgage then they report their collection to the CRAs, this will stop the closing of the mortgage until the debt is taken care of, typically they will PFD at that time since they just want their money and not stop your purchase. I tell you this so you can decide if you want to settle for lower with them now and sacrafice some Fico points as there wont be any deals once the mortgage pulls are made.
@gdale6 wrote:
@Ruby111 wrote:Thank you for the info, it was very helpful as we're still figure out how this all works. On the derog marks, does it make sense to pay the accounts that have not gone into collections, before paying the collection agency accounts? (all pandemic related debts) Thank you in advance for your advice!
If updating monthly then yes take care of them first even before those updating monthly with CAs attached. Be aware that nothing pulls collectors out of the wall more than a mortgage pull, these guys typically wait until someone goes to get a mortgage then they report their collection to the CRAs, this will stop the closing of the mortgage until the debt is taken care of, typically they will PFD at that time since they just want their money and not stop your purchase. I tell you this so you can decide if you want to settle for lower with them now and sacrafice some Fico points as there wont be any deals once the mortgage pulls are made.
@gdale6 @Ruby111 this is so true. I can speak of what gdale said first hand. I applied for and was prequalified for a mortgage back in Spring 2021. Had clean reports, I knew this bc of our great myfico products and also the lenders also confirmed. Literally 6 days later, a new CO appeared on my CR's and was ALMOST obsolete. It was out of SOL for suit but still w/in the 7 year reporting period. Like gdale speaks of, these JDB (junk debt buyers) snatch up old CO's for pennies on the dollar and just sit back and chill. They pay for services that don't report monthly about these CO's as I am guessing would be too costly. Then opt instead for some sort of notification of ANY persons they hold a CO on that has just applied for a mortgage exactly bc they know that one way or another they will be getting paid. Lucky for me, not so much for them, due to the pandemic I was not able to find a house to buy so shortly after this CO appeared on my CR's it was gone, lol. It sucks that they prey on consumers like this but it is a thing for sure!
Starting Score: 461