Reverse Mortgages Will Help 62 and Older Stay in Home Create Cash Flow

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While some collection agencies will agree not to report medical collection accounts that are paid off immediately, others refuse to do so. And some bill collectors will use the threat of credit report damage to try to get patients to pay up, even if the bill itself is disputed.


Here are some interesting myths and facts about medical collections! 

Myth: As long as I am making payments on a medical bill, it can't be sent to collections.

Fact: Making payments won't necessarily keep the bill out of collections. Even if you are making regular payments, they need to be a certain amount to prevent being turned over. Of, if you are under a payment arrangement but are late (even by just a few days) your bill may go to collections. If you leave any balance unpaid, there's a good chance it will go to collections.


Myth: When it comes to credit scoring, medical accounts are treated differently than other types of collections accounts.

Fact: The credit scoring formula does not distinguish between medical and non-medical collection accounts. All collection listings are derogatory and will affect your credit score the same way as other collections. Some creditors have been known to be more lenient when it comes to medical debt, even though the credit scoring formula will not.


Myth: I'll need to pay off medical collection accounts to improve my credit.

Fact: Paying your bills is the responsible thing to do, but don't do it expecting drastic changes to your credit score. Collection accounts damage your credit score, paid collections aren't as detrimental but they're still negative. The negative listing can stay on your credit file for up to 7 years.

Bottom line, if you want to be ready to buy a home or refinance, call me and I'll help you with credit, loan type and walk you through it.

Posted by Anne James on September 17th, 2021 5:19 PM
Homeowners who might provide a listing for potential Homebuyers won't sell as buying another home, whether bigger or downsizing, means a mortgage with a rate hihger-- one to two percent higher than their current home. In addtion, the new home will be up to thirty or forty percent higher in price than their current home. Historically low rates and rising prices have created a pressure cooker for desperate buyers who are moving to lower-priced counties with a long commute or simply to other states such as Nevada, Texas, or even across country if job offers await at higher pay.
Potentially exisiting home sales rose by 3.3 percent, or a gain of 194,100 sales, per First American Financial Corp. statistics. That market is under-perforning by 4.2 percent or 256,000 in sales, locking out would-be homebuyers and literally locking in potential home sellers. That's a big market out there to sell your home to or a lot of equity locked up in a low-rate on existing homes.
One answer to rate-locked homeowners is to take cash out of their existing home in the form of a Home Equity Line of Credit to downsize or move to a retirement state. With historically high rents, waiting for rates to come down while collecting rent may make sense.
Anne E James is a California-licensed Mortgage Broker with 23 years experience in lending. You can email her at
Posted by Anne James on July 23rd, 2018 5:08 PM


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