Medical Collection Boo-Boo’s are usually the hardest things to remove from a credit report, even though the Fair Credit Reporting Act does have pretty strong language about them.
The final rule of HIPAA (the Health Insurance Protability and Accountability Act) makes sharing personal medical record informations illegal with with the public. Remember all those forms you now sign when you check into the doctor’s office – that’s what it’s about.
The rules of HIPAA specifically includes past, present and future payments of health care. The way most people get collections is because of co-pay. They go to the doctor, pay their co-pay – and then leave the rest to the insurance company. When the insurance company does not pay all of the bill, the balance is sold to a collection company, and added to your credit report.
These collections DO pull your credit score down – AND starting on July 1, 2012 – FHA will begin requiring that you settle with your medical creditors in order to get a mortgage loan… that includes your MEDICAL collections too! This is going to be especially tough for some folks, and is a HUGE change in direction for FHA! So, if you are ready to buy, have some Medical Collections on your credit history, you might want to talk to us NOW, as opposed to WAITING until after July 1, 2012… because it’s going to be more costly, and more time consuming to go through the process!
If you are considering a mortgage loan, please contact Steve and Eleanor Thorne, 919-649-5058 – or connect with us on Facebook! We work with people every month who had some credit issues, cleaned them up, and then were able to buy a house! Don’t give up! We can help you do this!!
The New Housing Bill that Congress just passed in an effort to “save” Fannie Mae and Freddie Mac (F/F) has some other features that homebuyers need to be aware of.
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