Two questions on paying off debt...HELP.

[Slingmama5]

Debt:
Windstream Wireless $625 placed in Collections 5/2009
Utility Account $141 placed in Collections 5/2009
Utility Account $250 9/2009
Wells fargo Car Repo $12,197 Charged Off 1/2009

As you can see 2009 was not a great year.
I've aready disputed last year. Everything came back verified.

My first question is...
Do I pay off the three small debts with an agreement that they will be removed or will contacting them make it worse for my credit? Should I just let them lie and continue to open up good credit now (secured cards, etc..)

We are in the process of obtaining good credit. Here's our attempt at establishing good credit.
1. Dept store card $100 balance on a $500 limit
2. Secured Visa credit card of $2000 (spend and pay off $50 every month)
3. Secured $5000 loan from bank

Second question is.....
Next February, we want to buy a $60k home with 10% down payment on a $38k salary, hoping to have four Active, positive accounts w/ NO late payments and very low used credit for the past year. My husband has been with the same job for three years and before that 13 years. I don't work and it will be in his name only. Is it possible to be approved for the home AND still have that Repo in 2009 on my credit?

[Lian]

Windstream Wireless $625 placed in Collections 5/2009
Utility Account $141 placed in Collections 5/2009
Utility Account $250 9/2009
Wells fargo Car Repo $12,197 Charged Off 1/2009

Paying delinquent debt alone wont remove the negative items from your CR, so thus wont improve your score without their consent to a PFD agreement. When opening payment negotiations, you are telling them you have $$ to pay, but wont pay unless they meet your terms. They may, if they have alternate means, take those means rather than agree. So, it is important to know the SOL status of the debt prior to opening PFD negotiations. Is the debt still within SOL?

The charge-off is of particular concern, due both to its debt balance (could you even offer to pay it?) and the fact that it could mature into another collection. Since it was a repo, the OC most likely incurred an offset of your debt balance by sale of the vehicle. Does the current balance truly represent your current indebtedness on the difference?

Since your concerns center on the impacts of these items on a loan approval, I would recommend having an informal chat with the expected mortgage broker, and get their qualification requirements. They may require all delinquent debt to be paid, and may even require that it be paid at least a year prior. You need to know the rules before entering the game, and only they can tell you their rules.

They may want you on the deed, and thus may consider your credit.

[Slingmama5]

Originally Posted by Lian

Windstream Wireless $625 placed in Collections 5/2009
Utility Account $141 placed in Collections 5/2009
Utility Account $250 9/2009
Wells fargo Car Repo $12,197 Charged Off 1/2009

Paying delinquent debt alone wont remove the negative items from your CR, so thus wont improve your score without their consent to a PFD agreement. When opening payment negotiations, you are telling them you have $$ to pay, but wont pay unless they meet your terms. They may, if they have alternate means, take those means rather than agree. So, it is important to know the SOL status of the debt prior to opening PFD negotiations. Is the debt still within SOL?

The charge-off is of particular concern, due both to its debt balance (could you even offer to pay it?) and the fact that it could mature into another collection. Since it was a repo, the OC most likely incurred an offset of your debt balance by sale of the vehicle. Does the current balance truly represent your current indebtedness on the difference?

Since your concerns center on the impacts of these items on a loan approval, I would recommend having an informal chat with the expected mortgage broker, and get their qualification requirements. They may require all delinquent debt to be paid, and may even require that it be paid at least a year prior. You need to know the rules before entering the game, and only they can tell you their rules.

They may want you on the deed, and thus may consider your credit.

Thank you for taking the time to respond to my questions. I have read the SOL for NC posted on this forum, but I don't really understand what it means. Could you help me? Are the SOL all the same for every debt and only based on the state? How can I figure out what the SOL are on these debts?
I will definitely arrange for a PFD when paying off the small debts.
I know they sold the repo and we shouldn't owe that much, but how do I find out what the remaining balance is w/o waking a sleeping giant? Dispute it as inaccurate?

I have spoken to a mortagage broker about our specific credit. He said we needed to pay off the three small ones and establish at least three active positive accounts for them to even look at us. I told him of the repo and he didn't say anything about it. Guess I should call him up and ask again? He was very positive and has asked for me to call him alomng the way as we pay these off and establish new.

Thank you for all your help and advice!