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Mortgage Late Payments...should I pay my house off?

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Hello! I’m new to the forum. Just wanted to say thank you to everyone who posts here. The information I’ve read on this forum has been a great resource.


Here is my situation. I have a couple of late payments (all 30 day) on my credit report. Two from two separate credit cards and another two from my mortgage.

I went through a long period of working unpaid for my family’s business. Fortunately (thank you Jesus) the big job we were waiting for panned out, and we’re all going to get our backpay.


Soon I’ll be in a position where I can pay off all my credit cards (about 7K) and even my house (only 4yrs into the 30yr loan). My plan is to try and strike a “Pay for delete” type of agreement with my credit cards, and to try my luck with goodwill letters for my mortgage company (Mr. Cooper Home Loans).


Here’s what I’m wondering; will it make any difference that I can pay my house off? Does a “Pay for delete” work at all with mortgages? Or do I stand a better chance continuing to make regular monthly payments and pleading my case that way? Eventually I want to sell my house, but I am willing to wait if a certain scenario will help my chances.


Any advice this? Thanks guys, I really appreciate it.

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Posted (edited)



PFD generally refers to deleting the entire trade line in exchange for payment of a charged-off balance, and even then it usually only works with debt buyers/collectors (some of whom now do this as a matter of policy).


Your best bet is going to be goodwill, and as I normally say, goodwill requests rarely work but that doesn't mean you shouldn't try  (even multiple times). 


Did you by any chance ask for these accounts to be put into forbearance while Covid blows over?  Many/most creditors offered (or even still offer) programs for this.


If no, you might just call customer service for these accounts and see if they offered a program like that, and let them know you would have done that if you'd known the option was available.  Maybe you'll get lucky with one or two, and they'll process a goodwill request with a phone call.


Mr. Cooper (I still have a hard time typing that without laughing :) ) is probably just servicing your loan, and they really don't care either way if you pay it off or not... but with that said, you generally have a dramatically better chance with goodwill while the account is still open. 


Side note for business context:  the way mortgage servicing works, unless you chose a lender who keeps your mortgage in its portfolio, consumers don't get to choose who services their mortgages, and as a consequence Mr. Cooper doesn't really care if they service another mortgage for you in the future; the mortgage investor who owns your note is their customer.

Edited by cv91915

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Thanks cv91915 I appreciate the ideas and background info. I will proceed with goodwill letters while the account is open then. I didn't take advantage of forbearance but in hind sight that would have been a good idea. 

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