Need to pay off 15 yr old collection for VA loan?

Guest

We applied for a mortgage and the loan officer insists that we pay off a collection that's about 15 years old. The original creditor isn't even now reported on my credit report. The debt was sold off to a collection agency and then resold it to another company which is now reporting the debt as unpaid. The LO asked me why I wasn't paying what I owed and I said that it was too old but he insists that we do so. Well from the very tone of his voice I could understand he's not going to help us in any way, though he said he'll try and see if we could be approved.i actually need a VA loan, you guys think it’s too necessary to pay off 15 year old collection?

jameshogg · Posted: Mon Oct 27, 2008 12:40 am Post subject:

Hi madeline!

If you have a unpaid loan, you will have to pay it off irrespective of the fact that it is 15 years old. If you do not pay it, the collection agency may place a lien on your property or it will be mentioned in your credit report which will make it difficult for you to get a loan.

Thanks.

banker0679 · Posted: Tue Oct 28, 2008 6:09 pm Post subject:

Good Evening Madeline and welcome to Mortgagefit!

To answer your question:
You more than likely dont' have to pay the loan but this will depend on the amount, and the state you live in. This also will depend on if this is a collection or a judgement in your name. If it's a judgement then you HAVE to pay it off.

VA and FHA have the same credit guidelines, and they dont normally require you to pay collections after 12-24months.

I would recommend that you find another loan officer who can assist you.

Thanks
Robert

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