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

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

Casa Grande, AZ · Member since 2015 · 15 posts · 1 vote

I have a 680 score and 1 account in collections for $500... Could I get an equity loan or does that collection need to be removed or paid off ?

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Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
11y
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 !!!!!

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  • Investor · Daphne, AL · Member since 2014 · 1k+ posts · 242 votes
    11y
    That's s question only your banker can answer. No doubt that you'll get a better deal on the loan if the collection issue goes away. Good luck.
  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    11y

    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 :)

  • Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    11y
    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 !!!!!

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