HELP! ready to negotiate, need good advice

Anonymous · ‎05-05-2009

In the process of getting a mortgage when all the sudden my score dropped 25 points. My LO and I were puzzle and was unable to find the reason the score dropped happen. Due to all the helpful info from this forum and reading various posts... I found it today. Its a Applied Bank TL, the score dropped happen because Applied changed the "Date Closed" and fico read this as a new miss payment.

Applied Bank Charged off as bad debt Bal:$732

status as of - Feb 2009

Date opened- Jan 2005

Date of last activity- Not reported

Date paid out- Not reported

Date Closed- May 2005 this is where the score drop happen... its now reporting close APRIL 2009

Credit limit- $500

past due- $732

profit &loss wrteoff

I need to negotiate. Most likely they won't do a PFD, is my next best option "paid as agree" with all negative notations removed? Should I be concern about them changing the date close? I need to regain the points loss... please help me find my best option.

Anonymous · ‎05-05-2009

If you can negotiate a settlement that removes only the derogs and leaves the TL, this is actually better than PFD.

Anonymous · ‎05-05-2009

Thanks for the reply...that makes sense, but if the TL reports the same minus derogs, won't the date close: April 2009 and updated date of last activity hurt score wise?

AndySoCal · ‎05-05-2009

If the dreog info (profit and loss) is removed and changed to paid as agreed the date closed does not matter. When you say pay it off I presume you mean in full. I settled account ( paid for less than full balance ) is also considered derogatory.

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Anonymous · ‎05-06-2009

Those dates only hurt if it is derog, meaning a "recent" baddie. When it is a paid satisfactory TL, the close date is of no consequence.....the "open date" is what is considered toward your account age and average age of accounts.

@Anonymous wrote:
Thanks for the reply...that makes sense, but if the TL reports the same minus derogs, won't the date close: April 2009 and updated date of last activity hurt score wise?

Anonymous · ‎05-06-2009

Is that the correct closed date? If not, I would have it changed back to whatever it should be.

Also, is there a balance reporting? Does this seem to be counted in your utilization percentages when you pull a report here?

Message Edited by sidewinder on 05-06-2009 08:55 AM