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Credit Card debt and a FHA Loan

Asked over 2 years ago - San Francisco, CA

I am purchasing a home with a FHA loan. I have a debt of a Visa credit card that I never paid off which will be 7 years old soon. A collection agency offered a settlement of a lesser amount than what I owe. I am afraid that an underwriter may ask for the debt to be paid in order for the loan to go through. If I pay the debt in full will it show in my credit report for another 7 years?

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Attorney answers (1)

Steven Alan Fink

Reputation Level 20

Answered over 2 years ago. Real Estate Attorney in Newport Beach, CA.

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You can always negotiate with the collection agency. Pay in full in return for them not reporting the card at all or reporting paid as agreed. Get agreement in writing.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.

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