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Paying on Collection accounts to get mortgage
I am trying to purchase my first home. I have several accounts in collections. I have contacted each collection agency as well as the original creditor in attempts to pay for delete, however no one was able to do that as they said it was illegal. One person I spoke with said that she only knew about past due medical bills where they were able to delete the tradeline but no credit card companies would do that as they have a contract with the credit bureaus. Another person said that she was no able to delete it because there would be the original creditor listed on my report as transferred to another company but there would be nothing to offset it. I am half tempted to send a Pay for Deletion letters to each company but I have read that it was a waste of time but on the other hand I have read on CreditKarma that several people were getting collection accounts deleted. I am also tempted to just settle for a lessor amount with each company but again I have read here that it could hurt my score not help it. I have spoken with a Mortgage Broker who told me that it would just need to be listed as a zero balance on my credit and that how it was paid, settled or paid in full, is not important. I am so confused right now as everywhere I look I am getting mixed messages and no 2 people I speak with are giving me the same information. The only thing that is agreed upon is that my score needs to be increase to qualify for a mortgage. And that leads me to my next issue, everywhere I look I have different score. The one mortgage company pulled my scores and they do not match anything that I was able to find elsewhere from the 3 bureaus. Does anyone know what type of score is used for mortgages so I know what score to focus on? What should I do about the collection accounts, settle or pay in full which ones helps increase more? Should I send Pay for Deletion letters even though I was already told they wouldn't do that? Any help you be greatly appreciated.

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First of all, PFD's are not illegal.  The agreements with the CRA's state that information must be acurate but that does not preclude PFD's.

You do have to be very careful with collections as you can change the last date of activity and end up with a collection that has a signficant negative impact.  You really just have to do careful research on sites that deal with credit repair.

Creditors can and do vary but many mortgage lenders use the FICO 04 models.

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