Get approved for 3 month pre-modification home Loan with 3 Credit card Collections

Get approved for 3 month pre-modification home Loan with 3 Credit card Collections

I just got approved for my 3 month pre-modification loan for my home.  After I make 3 payments First Franklin will make a final modification of my home.  Point being I am about a year behind in my mortgage.  I have 3 credit cards about to be turned over to collections.  I wanted to settle now at 40% for which they agreed, but I cannot pull out funds at this time due to the pre-mod. 

So unless I pay about $389 for next 3 months to hold off settlement till then, it will go to collections.  Wondering if I should let it go to collections and deal with it later since my credit is toast as it is?

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if you can pay 318 that is what i would do
but
i do not know your finances, your work situtation, your loan details, your anything really
i do know that once in collections many times only LUMP sum payments will be accepted
and
you will have to re negotiated at that time
and
you need to know now
that any settlments will count against you at the end of the year as income… you know that right?

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Thank you.

Either way I will pay a lump some and I believe finances and late fees stop to accrue once it is sent to collections. 

I will pay a lump some in 3 months.  Is there a way to ask or negotiate what the can put on my credit bureas if paid in full?

I figure if I pay the $390 a month, financing and etc. will accrue over $1,200 in 3 months.  But that will stop if it goes to collections and I can save the $390 payment in 3 months which ends to another $1,200.  And I can probably settle at 20% which will be about $2,500. 

What do you think?

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you know
none of this stuff is set in stone and your guess is as good as mine
you sound pretty convincing from my end. ……
 
so I really feel sort of bummed about telling you anything one way or nother     in that    something might happen that you hadnt planned on and then you will never know what might have happened had you done it the other way
whew????
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one thing is for sure
once it goes to collections it become a more serious matter on your report in that it doubles the account listing
and it goes from late to charged off
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i always prefer pre collection negotiations when possible
i do know the collectors will press hard and consider suit and will have more power to harras at work and wife and such
so i pre fer pre collections my self

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Thank you Bo,
Appreciate the generosity of information.  A true Bodhisattva!
Well, the thing is that I have to pay my mortgage for 3 months and deposit a certain amount of money in the bank per month.  Which gives me no money to settle at the moment.  So either save my house and deal with collections later or settle with my credit card bills and risk the bank seeing my financial statements on paying my credit card debt.
So charged off means what to my credit?  I really don’t care about credit so much since I have what I need and will pay cash or with the credit I have left.  The future?  Well I hope to have more cash then to pay things in cash:-)
But I am “gambling” on the notion I can get less than 40% if I settle in full with collections in 3 months.  And build my credit from then on.  For me it’s not so much the credit as opposed to paying off my debt which is important.

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Sounds like sound reasoning based on economics
Thats what I would do given your situation economically

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I’ll let you know how it goes…..
Thank you