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MDonnay

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I have a chance to settle a debt for around 50% of the original loan.
I have a chance to settle a debt for around 50% of the original loan. I am also trying to buy a house. How will this effect my credit score and will it hurt my chances for a mortgage?

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If you are showing unpaid debt on your credit report that is in collections then it will most likely disqualify you for a home loan. I would advise paying it if it is still on your credit report. Make sure you pay in one lump sum, don't get involved in any payment plans. In addition to getting the 50% off try to get them to agree in writing to delete the account from your reports once it is paid, this is known as "Pay For Delete" or "PFD"

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