fred k asked in Business & FinanceCredit · 10 years ago

what is the FHA rules ? can i get this loan if I have collection debt report on my credit history ?

I am about to buy a house and the mortgage person claim that I can not get the FHA loan b/c I have collection report on my credit report , on the other hand , I have to say that credit report also mentioned that the debt will stay in the report up to this september b/c the debt was a dismissed without prejudice and by september 2010 it will be almost 7 years from the time it came in my report , he is trying to push me to hire his friend lawyer and negotiate the debt and pay half of it to be able to get the FHA loan . I do not think that he is honest with me , seems like he is trying to find customer for his friend , I think I have to ask for more time from seller and hopefully I can get the loan b/c base on creditors I will not have this debt on my credit report after september ,but I do not know how to deal with those collector ? somebody told me I can take case to court and change it to dismissed with prejudice the the collectors will be off . please give me an advice. thanks


I got a credit report from Experian and it mentioned that the collection as NOV 2009 to march 2010 This account is sheduled to continue on record until sep 2010

5 Answers

  • 10 years ago
    Best Answer

    Mortgage companies will not approve you if you have unresolved derogatory items on your credit report. It has nothing to do with FHA rules or requirements.

    It really makes no difference whether the collector's lawsuit was dismissed with or without prejudice. That has nothing to do with the reporting period which is governed by the Fair Credit Reporting Act (FCRA). Derogatory items age off your credit report 7-1/2 years from the date of first deficiency.

    If the debt is scheduled to age off by Sept, definitely just wait it out. There really isn't anything you can do to remove the item. It really would be a waste of money to hire an attorney to negotiate settlement. You can actually negotiate settlement yourself and do a lot better than half on a debt this old -- you could probably settle it for a $100. BUT it would still take 45 to 60 days for the "settled" update to show. Might as well wait the extra month and pay nothing.

    Source(s): BD
  • Anonymous
    10 years ago

    There is no rule that entitles you to a mortgage loan - you must meet the lender's underwriting standards and unresolved defaulted debts are usually an approval killer. If you'd gotten a lender preapproval first, this wouldn't have been a surprise.

  • 10 years ago


    If you looking for a legitimate online loans in 1 Hour.once approved your loan will be transferred directly to your checking account promptly, and securely. Now you'll be able to use the cash for all your necessities.

    • 100% secure and processing

    • No faxing -No credit check

    • Immediate online approval

    • Excellent customer service

    • Get Cash in Minutes!

    Good luck!.......

  • 10 years ago

    Do you need a loan or funding for any reason such as

    a) Personal Loan, Business Expansion,

    b) Business Start-up, Education,

    c) Debt Consolidation

    d) Hard Money Loans

    loan for any thing ?

    We offer loan at low interest rate of 3% and with no credit check, we

    offer Personal loans, debt consolidation loans, venture capital, business

    loans, education loans, home loans or "loans for any reason!”. However, Our

    method, offers you the chance to state the amount of loan needed and also

    the duration you can afford. This gives you a real chance to get the funds

    you need! Any interested


    FULL NAMES: _____________________________

    SEX:_________________________AGE: _______


    PHONE NUMBER:____________________________

    ADDRESS: ________________________________

    AMOUNT OF LOAN: _________________________

    LOAN DURATION:___________________________



    To Apply, you can contact us via email out. .with the above information

  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    10 years ago

Still have questions? Get your answers by asking now.