I’m worried about the collections on my report. Will they keep me from getting a mortgage?
There are a lot of credit repair strategies you can use to shape up your credit for a mortgage application. And there is no reason in the world that you cannot reach your goal in a reasonable amount of time. In fact, most of our credit repair customers find that six months is sufficient to shape up their credit enough to qualify for a good mortgage. But there are a few special situations that lenders are sensitive about.
Working with Lender Guidelines
There are a few exceptions that can keep you from qualifying for a mortgage, mostly related to lender guidelines. We have not reviewed your credit reports yet, but if you have had a recent bankruptcy you will want to contact a mortgage lender and ask how much time they require to have elapsed after your discharge date. If they will not consider a loan application for two years after your discharge, your credit repair should be long done by then, but that two year rule will become your time horizon.
Collections and Judgments
Open collections and unpaid judgments can be a barrier to mortgage approval as well. Many mortgage lenders will allow open medical collections to remain unpaid, but other types of collections may need to be resolved prior to loan application. As mentioned, you should speak with a mortgage lender about their requirements.
Put us to Work
If it turns out that your open collections will be a problem, our suggestion is that you let us examine your credit reports. As part of your credit repair service we will research the statutes of limitation, and based on several criteria, advise you about the best way to deal with your active collections. We may be able to mitigate the burden significantly and help you reach your goal of home ownership sooner than you think.