Will Medical Collections stop me from buying a house?

Submitted by LearningFast on Fri, 08/22/2008 - 19:21

What can I do about multiple medical collections totaling 3k? Need to clear those up in order to buy a house......

Most medical places only need a $10.00 payment made on each monthly to stay out of collections. Believe me I really know this one since for the last few years I have been buried in them. Now if they are already in collections they should still agree to a small monthly payment. I had one that I forgotten about because I was recieving a zillion every month (only have half a zillion left lol) and they excepted the ten dollars a month.

Sat, 08/23/2008 - 01:10 Permalink

Well that isinteresting----I thought that collections were collections.

Sun, 08/24/2008 - 03:06 Permalink

I don't think that they take medical into account when they are considering credit. for one it is not a bill that you would apply for or establish an account with, it is more like a forced bill.

Where a credit card or a mortgage is something that you have voluntarily applied for and are paying on on a monthly basis. You never really apply for medical credit, it just ends up being a bill that some don't pay and they end up reporting it on your credit report.

Sun, 08/24/2008 - 03:27 Permalink

I have also heard this too Good natured. The medical bills are not as crucial as the monthly ones. I did luagh about how you stated "forced bill". Isn't that the truth. And boy can I tell you those med bills can add up quick. I pay a stack every month.

Sun, 08/24/2008 - 13:49 Permalink

When I win the lottery, I will donate my points to you fireyone! You and goodnatured can share them and you can get out of debt! OMG---I am really delusional here I hope you know. Just kidding of course! However, the key word here is WHEN I win the lottery. :roll:

Sun, 08/24/2008 - 21:29 Permalink

Hi LearningFast
As far as I know all collections affect your credit score - be it credit card or medical collections. But when you are taking credit for buying a home, and the creditors pull up your credit report, I don't think that they will deny credit because of medical collections in your account, if all your other debts are fully paid.

Mon, 08/25/2008 - 12:28 Permalink

Lorri Could you please hurry up and win that lottery ALREADY!!!!LOL

Mon, 08/25/2008 - 12:33 Permalink

If you find problem getting credit with medical collections in your account, you should try to pay them off. However, if it is not possible to pay the amount, you can go for debt consolidation loans which comes with low interest rates. This will help you to manage all your medical debts more efficiently. But before you start paying off the debt, try to make the collection agency agree for pay for deletion. This will help you to get the home loan more easily.

Mon, 08/25/2008 - 12:40 Permalink

Thanks so much! Everyone has been so helpful. But I have another question. Is it possible that I can contact the hospital directly and they will consolidate these collections? And by doing this will it be removed from the creditor and back with the hospital as long as I pay the bill on time?

Mon, 08/25/2008 - 14:14 Permalink

They may do that, no harm in trying, bottom line is they want their money and I would think that it is a medical bill instead of a regular old bill that they may be more willing to work with you on this or have their billing company work with you.

Mon, 08/25/2008 - 14:37 Permalink

I have to PLAY the lottery before I can WIN the lottery.

Tue, 08/26/2008 - 01:59 Permalink

You sound like me. I really don't play anything more than the occasional scratch off. Never been too lucky on them. If I have an extra buck laying in my purse I will get one but never hold out much hope. I had a neighbor last year buy a $5 ticket one week and win $10,000 and then a few days later from the same store he bought a $10 ticket and hit $500,000. The only thing I got to see from it was a new home being built.lol. He was one of those people that didn't even need it. That figures HUH?

Wed, 08/27/2008 - 12:17 Permalink

Of course---the most I have ever won on the scratchoffs was $40.

Thu, 08/28/2008 - 03:50 Permalink

At least it gets you excited for say ...the three seconds it takes to scratch.
Gn does med. bills count against you as bad as cc bills? I always heard they overlooked med bills.

Thu, 08/28/2008 - 12:42 Permalink

Hi LearningFast
Yes, you may try to contact the hospital and ask them for a repayment plan. You can also try to make the hospital agree for pay for deletion agreement if your debt has already been reported to the credit bureaus and listed in your report. Doing this you can increase your credit score as soon as you pay off the dues in full.

Fri, 08/29/2008 - 11:59 Permalink

Hi Lorri
Pay for deletion is a agreement which is made between the creditor and the debtor by which the creditor agrees to remove the negative listing from the credit report as soon as you pay off the debt in full. However pay for deletion agreement should always be made in writing because it may happen that even after you pay off the debt, the creditor may show negligence in removing the listing from the report. In such cases the written agreement will help you to get the listing removed from your report.

Mon, 09/01/2008 - 12:22 Permalink

I agree with Justin. Pay for deletion agreement helps you to remove the negative listing from the report as soon as you pay off the debt. But there are certain listings in the credit report which cannot be removed by PFD, like charge off, even after you pay off the debt in full. As far as I know only the original creditor can remove the charge off listing but if the debt has already been sold off to a CA, it cannot be removed and will stay in the report for seven years. For that all you need to do is to ask your CA to change the status in your report from "paid charge off" to "paid as agreed" in your credit report.

Tue, 09/02/2008 - 07:37 Permalink

But if the original debt is lested by the original creditor it will still be there. Only the collection agencies listing will come off.

Fri, 09/05/2008 - 00:46 Permalink

Not only that what good is it really? I have been asking that and no one seems to answer. I look at it this way. If you have two negative listings 1. the OC 2. the collector...it only counts as 1 anyway. So just because the collector isn't on there it isn't improving anything anyway. It will still take the origianal debt 7 years regardless. So this is what I trying to figure out..what good is PFD?

Sun, 09/07/2008 - 02:22 Permalink

Beats me---I teach second grade---we don't get into PFD----now I personally know what BFD is :D

Mon, 09/08/2008 - 06:05 Permalink

lol. Wanna be BFF's? I seriously just don't see the point in it as I staed before. That fact and at least if the collection agencies mark appears and they put paid in full it will show you paid off the debt instead of letting it linger.

Tue, 09/09/2008 - 23:22 Permalink

True---it absolutely should say Paid in Full if it was paid off. That would aggravate me no end.

Wed, 09/10/2008 - 03:31 Permalink

Everything about the credit world and how they do business and screw up your report aggravated me. I think the worst part of all is how lonf=g these bad marks stay on...7 years is too long. Someone who strives to do better and has really worked on their credit, many who just hot a bad spot , end up being victims for years.

Thu, 09/11/2008 - 17:19 Permalink

I wonder where the seven year figure comes from? It seems like it should be five. There is probably some formula that lenders, etc. came up with to protect themselves.

Thu, 09/11/2008 - 21:10 Permalink

I wonder that myself. I think it also should be lowered. Seven years is a really long time when trying to get back on your feet.

Fri, 09/12/2008 - 14:45 Permalink

For years it seems like I heard that a bankruptcy will stay on your credit for 7 years. Now I hear 10 years.

Sat, 09/13/2008 - 04:21 Permalink

Bankruptcy may stay in the credit report from seven years to ten years depending upon its type. As for example Chapter 7, 11 and 12 bankruptcies may stay in your report for ten years and Chapter 13 bankruptcies stays in your report for seven years. However, all discharged bankruptcies remain on your credit report for 10 years.

Tue, 09/16/2008 - 11:19 Permalink
Alina (not verified)

Let me just say that Im in the process of buying a hose ....and they ABSOLUTELY take into account your medical bills. I am required to pay off EVERY SINGLE medical bill on my credit before they approve me for ANYTHING!! I was told all my life that medical bills didnt matter, and it can not be farther from the truth. I will make it a point to teach my children the importance of paying their medical bills.

Fri, 11/07/2008 - 19:11 Permalink

Yes, if you do not make payments to your medical bills, your credit report will list it as a negative item which will affect your credit score. So you should always make current payment on all items including your medical bills else your payment history will be affected and you may be denied any further loan.

Sat, 11/08/2008 - 10:09 Permalink

I have now have a 610 credit score vs. the 580 that I had a few months back but the medical bills are still on there. Do you think it's possible for me to still buy a house?

Tue, 02/17/2009 - 19:57 Permalink

Normally it is very difficult to get a good deal on your mortgage loans with a credit score of 610. Although 610 is a good score, but you need to have a score of 700 and above to get a attractive rate of interest. You can wait for a few more months and pay off the remaining debt and see whether your credit score increases and then apply for the loan.

Wed, 02/18/2009 - 13:04 Permalink

I hadn't been on this site in quite sometime but today I thought that I should post an update..... I was able to buy a home April 2009 despite the medical collections. I recv'd an excellent fixed interest rate of 4.75%. Thanks everyone for your advice and knowledge on the subject.

Thu, 04/08/2010 - 15:45 Permalink