My question involves collection proceedings in the State of: OR
Our family is outgrowing our house, and we're looking into a first home purchase. My wife is breathing down my neck to apply for mortgage pre-approval, but I have one big concern before doing so.
The problem is that during the height of the recession, was laid off from my job and was not able to find gainful employment for the better part of a year. In the interim, our savings were expended, and I began to default on some debts. Most were taken care of over the last several years, but upon pulling my credit report (which I hadn't been doing - shame on me), I see an active collection for a decent sum (over $5k, but under $10k) - one of my many student loans that was sold and resold among private lenders and I had lost track of in the shuffle. It is now in the hands of a debt collection law firm, and apparently has been for a few years.
I would prefer to repay it, but it's just not possible right now. Also, I see that the six-year statute of limitations for my state is coming up in a couple months. It seems like the most prudent thing (aside from sending them all the money i don't have), is to let the debt become time-barred so that it is unenforceable in the courts. It won't go away, but it will help.
I'm aware that having it on my credit report won't help the mortgage process, but there's not much I can do about that, other than waiting another year and a half for it to fall off my credit report.
So my question is this: In applying for a mortgage before the SOL is reached, is there a mechanism that will automatically alert the past creditor and put them on the offensive? Or do they have to manually pull my report (which seems unlikely at this juncture, since it requires an additional expense for a 5+ year old debt)?
Our family is outgrowing our house, and we're looking into a first home purchase. My wife is breathing down my neck to apply for mortgage pre-approval, but I have one big concern before doing so.
The problem is that during the height of the recession, was laid off from my job and was not able to find gainful employment for the better part of a year. In the interim, our savings were expended, and I began to default on some debts. Most were taken care of over the last several years, but upon pulling my credit report (which I hadn't been doing - shame on me), I see an active collection for a decent sum (over $5k, but under $10k) - one of my many student loans that was sold and resold among private lenders and I had lost track of in the shuffle. It is now in the hands of a debt collection law firm, and apparently has been for a few years.
I would prefer to repay it, but it's just not possible right now. Also, I see that the six-year statute of limitations for my state is coming up in a couple months. It seems like the most prudent thing (aside from sending them all the money i don't have), is to let the debt become time-barred so that it is unenforceable in the courts. It won't go away, but it will help.
I'm aware that having it on my credit report won't help the mortgage process, but there's not much I can do about that, other than waiting another year and a half for it to fall off my credit report.
So my question is this: In applying for a mortgage before the SOL is reached, is there a mechanism that will automatically alert the past creditor and put them on the offensive? Or do they have to manually pull my report (which seems unlikely at this juncture, since it requires an additional expense for a 5+ year old debt)?
Debt Collectors: Will New Mortgate Alert Old Creditor
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