So my fiancee and I are buying a condominium together (our first big purchase that we are doing together). We are in the final stages of closing and we just found out she has over 8k of collections on her TransUnion account (sorry if I sound unprofessional with my terminology I am kind of new to this whole process).
She had surgery back in 2011 under her mothers insurance and long story short her mother basically decided not to pay any outstanding bills (my fiancee never even knew she had anything to pay). So now 7 or so years later our mortgage companies investor is basically asking her to pay off any debt before they can approve the close. It is a non-warrantable condominium so we have had to jump through hoops during the whole process with this investor.
She put a letter of explanation together that we sent yesterday to our mortgage company basically saying she had no knowledge of these collections and they are 'stale'. The collection agency is located in Washington State (where she is from before moving to NY) and they have to now transfer the collection to a company in NY before we can even look into it.
Sorry for the long post but this whole process is very frustrating and I want to know what options we have. Is there a way to lower the debt? Does it 'go away' after 7 years? We just want to close but there is no way we can afford 8k on top of all the closing costs and our 20% down payment :(.
Submitted July 21, 2017 at 08:23AM by WelcomeToTheGrove http://ift.tt/2vrBXz8
