Reply
Member
Posts: 14
Registered: ‎07-09-2007
0

Charged off Accounts to be paid

Hello Everyone:
 
I have been pouring over all of various posts and topics but I would like to make sure I do the right thing.
 
I am in the process of applying for a FHA Loan to buy a house in March:smileyvery-happy:. I have my money saved up, my current accounts paid down and everything is set but...
 
I have 2 charged off accounts: Capital One and Wells Fargo.
Capital One is set to come off in Feb 09
Wells Fargo is set to come off in Jul 09
 
As part of my loan I have to pay of both accounts before closing on the house. My question is... if I pay both of these account (total of 3500) will they still fall off when they are supposed to or will they fall off 7 years from the paid date (I am in TX). I am going to try to send the PFD (pay for delete) letter but if they decline I want to know what to expect.
 
I am also talking with the bank to see if there is any way that I can not pay those to and still close on the house. But I think that they are going to say no. :smileysad:
 
Any help would be great thanks.
 

Starting Score: 530 TU FAKO
Current Score: 530 TU FAKO
Goal Score: 600+


Take the myFICO Fitness Challenge
Senior Contributor
Posts: 4,635
Registered: ‎03-11-2007
0

Re: Charged off Accounts to be paid



newdeep wrote:
 
I am in the process of applying for a FHA Loan to buy a house in March
...
I have 2 charged off accounts: Capital One and Wells Fargo.
...
As part of my loan I have to pay of both accounts before closing on the house.
...
if I pay both of these account (total of 3500) will they still fall off when they are supposed to or will they fall off 7 years from the paid date (I am in TX).

Prime lenders will say yes, you must pay off the COs. Has any mortgage lender, broker, bank, etc. pulled your credit in connection with the home loan? Don't let them until you get the collections are deleted. The CAs will see the inquiries, know you are home shopping, and they know then they can be adamant offering you nothing except full payment to satisfy the debt, and no deletion.
 
Paying these collections will NOT extend them on your CRs for another 7 years. Read about SOL and CRTP.
 
March is a long ways off. Send out your PFD letters, but do NOT make any mention of the home purchase. You're past SOL, so they cannot sue. Tell them you just want to settle these debts. Offer 10 cents on the dollar. It's an opening bid. They'll demand more, but you stand firm on the delete.
 
Member
Posts: 14
Registered: ‎07-09-2007
0

Re: Charged off Accounts to be paid

Oh gosh... thank you so much.:smileyvery-happy:
 
No I haven't let the bank pull my credit report. I figured I would dispute everything I could first and then let them pull it.
 
Thanks a bunch....Sorry for the silly question.

Starting Score: 530 TU FAKO
Current Score: 530 TU FAKO
Goal Score: 600+


Take the myFICO Fitness Challenge
Established Contributor
Posts: 578
Registered: ‎06-18-2007
0

Re: Charged off Accounts to be paid

that's wasn't a silly question.....and Noah gave you the best answer
Frequent Contributor
Posts: 328
Registered: ‎05-18-2007
0

Re: Charged off Accounts to be paid

Not a silly question at all.  When you first come here the amount of information you find can be overwhelming.  Good luck with the home.  :smileyhappy:


newdeep wrote:
Oh gosh... thank you so much.:smileyvery-happy:
 
No I haven't let the bank pull my credit report. I figured I would dispute everything I could first and then let them pull it.
 
Thanks a bunch....Sorry for the silly question.



Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.