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Time To Rebuild

MORTGAGE POSSIBLE? COLLECTION POPPED UP!

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Well the time has come for me to start shopping for a mortgage and a newhome. Just as I have been ready, I had a collection pop up on Experian. It has not been reported to Equifax or Trans Union.


In July 2010 I moved out of a house where I had an APEX Security Alarm System. I moved into an apartment where a security alarm was not permitted. Due to that, I had an early termination. I was never billed and never received anything from a collection agency. Now it's on my Experian report. I disputed and it came back verified of course.


Need some assistance to try to get this resolved. My score on Experian plummeted 100 points due to this. I had perfect credit to that time. I am looking to move on the mortgage and homebuying within the next 60 days.


Here's how the debt reads:

 

PERFECTION COLLECTION

Potentially Negative Closed

801-921-7379

 

Mailing Address: 313 E 1200 S OREM, UT 84058

 

Account

Name PERFECTION COLLECTION Account # 110XXXX
Account Type Collection Department / Agency / Attorney
Balance $948.00 Date Opened 3/1/2013

Account
Status Closed Mo. Payment
Close
Account Details Past
Due Payment Status Seriously past
due date / assigned to attorney, collection agency, or credit grantor's internal collection department
High Balance Limit
Terms 1 Month Comments

The SOL in Texas is 4 years. We are not past that point. The account originated with APX Alarms in April 2009 in a house in Kentucky. I moved from the house it was installed in in July 2010. I moved to Texas in December 2011. Again, I received nothing from anyone on the early termination. Now I had this pop up. It's going to ultimately cost me a mortgage unless I can get it deleted or recalled.

 

What should I do now? It doesn't seem like I have the SOL or DV to stand on. I urgently seek your suggestions.




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You may also want to ask in the credit section as the folks there have more experience with dealing with credit repair - this area deals more with mortgage questions - it is ok to ask here but just know you will get more viewers there

Good Luck

B

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I agree - offer a pay for delete and get that thing removed! SOL starts I think on the last payment you made. So if you moved in 2010, it will be 2014 before that runs out. Definitely not within your timeframe of getting a homebuying. So, the fastest way to get it removed is to offer to pay for delete - you can settle for less, but they have to agree in writing to delete the entry. If you don't get it in writing, don't do it. Honestly, DV won't do anything for you because you know that it's yours. Do everything in writing, with certified return receipts, to have a paper trail created. If you have any other debts that you walked out on like that - be prepared. When dh applied for a mortgage in the fall, all of the sudden creditors came out of no where. Thankfully they were all minor or obsolete, so it didn't take much to get rid of them. Get it all covered now so that you are not surprised later when you apply for a mortgage. For specific collection agency strategies, check the credit section. I have never heard of that company, so there is no way to know if they will be easy or hard to deal with. Good luck!

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I would also try for a pay for deletion. I think collection companies are more willing to do that if you agree to pay it all off at once. Definitely get them to send you something in writing with the agreement to delete from your credit report BEFORE you pay anything though!

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Since you're in Texas, make sure you read the pinned thread (in the credit forum) on Texas laws, as they are very specific on how collection agencies must respond if I am not mistaken. You may be able to obtain a removal without paying.

 

Good luck!

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I agree on the pay for delete...... You might even negotiate a settlement amount and still get it deleted.

Now, this isn't likely to kill your chances of getting a loan. But if you go conventional, then the 100 point loss might cost you more in fees(or higher rate) than paying this off.

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DH had a $4k collection pop up on his CR the day before the loan officer pulled our credit for the first time. It dropped his score drastically, but we still needed to purchase quickly. The lender just requested an explanation letter and did not require us to pay it off. It did increase our interest rate, but the need to move quickly outweighed the monetary loss. We are working to take care of it so that we can re-fi in a few years.

 

That being said, if the need to move outweighs the potential interest rate increase, you still may be ok to move forward. I would still attempt to get it fixed as you are mortgage shopping.

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