Collection Items

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    So my Husband & I have a couole if debts that we’ll have to pay off if we plan to be NACA qualified this year. Originally, I was told that NACA goes off the date the service or loan account was opened…When i went to the Achieve the Dream event, my Counselor for the day said NACA goes off the date the collections account was opened. The biggest of the two debts was a loan I took out in 2015 but the collection account is showing Dec 2019. If I could just provide proof that it’s old & write a LOX, that would be PERFECT, but I’d like to know for sure before paying them all this money.


    It’s based on recent activity. You can’t have recent collections period. Your choices are to pay it off or wait until the collection, not the loan, is old.

    If you want a silver lining in all this naca will allow you to buy a house as soon as the collection is paid off. Other banks not working with naca will want to wait a few years after its paid or falls off your report.


    Yes exactly what you said get the proof that its old write an LOE and then you should be good. Make sure they give you that proof in writing with a company letter head so the bank can see it. You will need to do this for every collection on your report old or new.


    @nelsont Thank you! So regarding Medical collections. My Husband has a collections account for $425 from a Dr’s appt. I read some where that it isnt counted against him but will need to submit a LOX. Is that accurate?


    All collections are counted against you.

    Missed payments have to be at least 12 months old with the only exceptions being on case by case relating to one time emergencies.

    A collection however shows a pattern or history of multiple consecutive missed payments which is fundamentally the opposite of what naca counsels and requires without exception of their members even in these trying and uncertain times.

    The value of the collection does not matter. It can be 1 dollar or 1 million dollars. It must be repaid or in an approved repayment plan prior to qualification and if in repayment it must be paid off before you go under contract on your house.

    I don’t claim to know much about your finances nor do I suggest you broadcast them but at $425 I would just pay it all and be done with it. Your process will be so much smoother that way…there are some people that have a monthly payment plan of 400/month in collections. 425 total shouldn’t be much to worry about.

    But you will need a letter of explanation regardless of what you decide to do.


    @nelsont you’re right! The $425 is definitely no biggie but every penny counts so if it was one I could pass on, i could apply that $425 to that big one I mentioned earlier. I will certainly have to do a payment plan for that big one. Thanks for answering all my questions no matter how remedial they may be LOL

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