Andrea before you reach out to the collection companies, meet with a local and trusted loan officer. If you would like a referral of some good loan officers I can certainly forward their names and numbers. They can pre-qualify you at no cost and let you know what may need to be done if anything. Collection accounts do have time limits on what can be collected depending on what type of debt is. Calling them can start that clock again so wait until you hear from the loan officer what is best. If you would like assistance with the buying process I would be more than happy to help you. Please email me at email@example.com
Just a quick addendum to my answer below,
HUD says FHA borrowers can now receive the $8,000 tax credit up front and can be used for closing but not for a down payment. This is a powerful assistance to your housing needs.
On a normal resale property the time for commitment can be as little as 3 weeks from executed purchase and sale agreement and probably not longer than 4 weeks. This can be a factor of which lender the buyer is using and how busy the underwriting department is and also what financial condition the lender might be in with foreclosures...is the lender solvent. Also, delays can be a function of the new rules that underwriters are addressing due to the subprime meltdown you read about in the newspapers. Things are changing out there in lenderland, changing on a day by day basis and there is already a lot of bureaucracy in this process to begin with. If you have missed your date, you have options as a seller, one of which is to pull the plug on the deal...I would talk to your agent first.... more