Can you have an account in collections and get home equity loan

3 Replies

You should explain the circumstances and most small collections are not an issue when the loan proceeds payoff that collection at closing. Yes, it needs to be paid off. 

The nature of that debt can be n issue.......was it from a previous bank loan, a write off of another equity line? OTH, medical collections are common and practically ignored by lenders, but they will require a release of lien or for it to be paid off. Good luck :)

Originally posted by @Bill Gulley :

 OTH, medical collections are common and practically ignored by lenders, but they will require a release of lien or for it to be paid off. Good luck :)

 another reason we send even the smallest unpaid debt to collections !!!!!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you