I did some research on medical collections the other day. As a lender it is the most common collection that I see on a borrower's credit report. Did you know that more than 40% of Americans have medical collections?
Finally, there's some good news for our clients with medical collections on their credit report. The change could mean borrower credit scores could go up by as much as 25 points!
If you have potential buyers who have a medical collection accounts on their report, all three credit bureaus are no longer placing so much weight on those types of accounts. The change was announced a couple of months ago, and means a higher overall score and a better chance for lenders like me to get your buyers qualified for the home they want. Finally some common sense.
The reduction of the credit score penalty for medical debt should help bolster real estate sales. We'll take any good news we can get :-)