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lawyermom17

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Collections/Charge-off repayment impact on buying home and credit score
I plan to purchase a new home at the beginning of the new year. I have the following debt that I need help strategizing how to tackle:
- Medical bill collections $3000 (2017)
- Merrick Chargeoff $1300 (2013)
- Bank of America Chargeoff $900 (2013)

Should I pay in full or settle the accounts. Which should I pay off first?

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Most mortgage lenders will require that all collections or negative accounts are paid. Wouldn't make much difference if you settle or pay in full. What you should be going for is "pay for delete agreements" so do some reading on them. Best case is to get these negative removed. That usually requires payment in full though. I would not advise entering payment plans with debt collectors. If the accounts are not with debt collectors and still with the original lender, a pay-for-delete agreement probably will not work as the banks probably would never agree to them.

Top Contributor
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1454 People Helped

I would start with one of the lower amount accounts.

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