Read time: 1 minute

Even Minor Medical Expenses Cause Problems For Homeowners Who Want To Refinance

It's kind of crazy, isn't it? The high-rollin' cokeheads of Wall Street crash the economy and collect multi-million dollar bonuses, while you can't get a second mortgage because you were a few bucks short on a co-pay. I guess it's your own

It's kind of crazy, isn't it? The high-rollin' cokeheads of Wall Street crash the economy and collect multi-million dollar bonuses, while you can't get a second mortgage because you were a few bucks short on a co-pay. I guess it's your own damned fault for not forking over the dough to Freecreditreport.com!

Two erroneous $11 doctor bills stopped Jeanne White from refinancing her home.

The 49-year-old resident of Colleyville, Texas, pays 7% on the mortgage for her three-bedroom house. In October, she says, she was shocked to learn that the two medical bills, which had been turned over to a collection agency, had caused her credit score to fall to 680 from 757—making refinancing far too expensive.

"I was told I'd have to pay $14,000 in closing costs to get a 5.5% interest rate," Ms. White says, substantially more than she would have paid with a higher credit score. When Ms. White, a retired sales manager, contacted the doctor's office, she found out the bills had been issued in error.

Ms. White's case is hardly an isolated one. Otherwise well-qualified borrowers with good loan-to-value ratios and steady employment are increasingly finding it difficult to refinance because of medical billing mistakes marring their credit, say mortgage bankers and real-estate agents.

Jeanne White of Colleyville, Texas, saw her refinancing costs skyrocket after her credit score was dinged by two disputed $11 doctor bills—and is now in limbo as interest rates rise.

Rodney Anderson, executive director of Supreme Lending, a mortgage bank in Plano, Texas, calls medical debt the single biggest roadblock for would-be refinacers. "People have no idea that they still owe small amounts which later end up on their credit report," he says.

Can you help us out?

For 17 years we have been exposing Washington lies and untangling media deceit, but now Facebook is drowning us in an ocean of right wing lies. Please give a one-time or recurring donation, or buy a year's subscription for an ad-free experience. Thank you.

More C&L Coverage

Discussion

New Commenting System

Our comments are now powered by Insticator. In order to comment you will need to create an Insticator account. The process is quick and simple. Please note that the ability to comment with a C&L site account is no longer available.

We welcome relevant, respectful comments. Any comments that are sexist or in any other way deemed hateful by our staff will be deleted and constitute grounds for a ban from posting on the site. Please refer to our Terms of Service (revised 3/17/2016) for information on our posting policy.

Please Do Not Use the Login Link at the Top of the Site.

In order to comment you must use an Insticator account. To register an account, enter your comment and click the post button. A dialog will then appear allowing you create your account.

We will be retiring our Crooks and Liars user account system in January, 2021.

Thank you.
C&L Team