We are buying a house. We had to pay off a debt to raise our credit score quickly, but another came
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Our mortgage is going on my husbands credit only. He has two collections on his report. Our mortgage lender suggested we pay off one and she would work with the credit reporting companies to up our score. Our loan is approved and locked in to a good rate, but we need the good credit score for our PMI. Anyway, we paid off the first debt and got the fax that all is well. She had his credit re-calculated and it went down. Another debt, a small one (1400) came up from 2002, but it was just turned into a collection agency this month. Anyway, my husband and I would like to pay this off too and recalculate, but our lender says that because of the date being so recent we would have to get the collection agency to agree to delete the date. Is that reasonable? We are supposed to close on our house on the 28th. Now, because of this credit issue and the score not going up we can't afford the payment and are locked in. Any ideas on the credit or how to get out?
We are buying a house. We had to pay off a debt to raise our credit score quickly, but another came up?Yoiu're talking about rapid credt re-scoring, and that happens a lot with mortgage lenders. It's not fishy at all.
Your lender is correct. The only thing you could ask the collection agency for is a pay for deletion, which means they get the money they're owed and, in return, they'll delete your file and it won't be reported to the credit bureaus anymore. Your husband's score will go up dramatically and quickly if another rapid re-score is done. But it can't happen without the cooperation of the collection agency. They have the ability to send an update pretty quickly, but whether they will or not is another story. Ask them and be sure to get it all in writing if they agree.
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