What To Do About The New FHA Collection Changes…

Good Morning!

 

This is an update to my last blog post…http://loansdonequickly.com/fha-to-drop-another-hammer-in-april-of-2012/

As I said in the last post – FHA is changing their guidelines on collections, and if you have an aggregate of $1,000 of collections or more then you have to pay them all off.

…So, if you have more than $1,000 in collections now what do you do?

Here are three quick options…

1) You could always pay your collections down to below $1,000. Depending on how many you have this may or may not be a good option for you.

2) If your score is 620 or better you can go with a conventional loan. If we can get an approve / eligible through the automated system, and the automated system isn’t asking you to pay off the collections (usually doesn’t) then you should be ok on not paying them off.

3) You can hire a credit repair company to work on your credit. Many of these companies claim to be able to remove collections.

If you are in this situation – give me a call or shoot me an email. Let’s visit about the best strategy for you!