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Member
newdeep
Posts: 14
Registered: ‎07-09-2007

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
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Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007

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
newdeep
Posts: 14
Registered: ‎07-09-2007

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+


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Established Contributor
trinigal
Posts: 578
Registered: ‎06-18-2007

Re: Charged off Accounts to be paid

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

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.




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