Hello All! This is a fantastic board. I have learned a lot over the last few weeks! I have a question. My Equifax report shows three collection accounts that are affecting my ability to get a mortgage at a good rate. Although all three are paid, they are relatively recent (2/01, 9/01, and 7/01). Two are actually medical bills that were incurred because of disputes I had with the insurance company.... but that's another story. Several days ago, I saw a posting with a form letter that can be sent to collection agencies explaining your situation and asking to have them removed. I cannot seem to find it and was hoping someone could point me in the right direction... Thanks...
Well there's two actually One is the goodwill letter where you kindly ask them to remove the derogs - but forget sending this to a collection agency, that'll only give them a good laugh. Instead, send the validation letter from the Sample Letters - send this CRRR (Keep your paperwork). Give it 30 days, if no response, then send the Estoppel letter (Since you've paid then 99.99999% chance they ignore it). If no response then send the Estoppel letter (At this point it's debatable on what to do, you can dispute with the CRA or not, I did and had it removed). If you don't dispute with the CRA then wait until the 15 days are up, then dispute with the CRA by sending them copies of your green cards. If you're applying for a mortgage, I'd show them the green cards after the first 30 days and tell them "See - they don't belong on there. I asked them to validate the collection belongs and they can't" Hope this helps... GT
I am in a similar situation but have not paid the CAs yet. I am actually refinancing my home and one of the conditions is to pay off three small CAs and two larger discharged accounts. Funding for the refinance is Friday and I plan to leave money for the chargeoffs in escrow and try to negotiate those but the CAs are around $100 each, so I didn't think it was worth it and was just going to pay them. It sounds like this might not be a good idea. Ideas?
