- How did you owe this money?
In 2007 after discharged from the military, I went to work part time for a small construction company. One day the boss asked me to apply for a Chase Bank business credit card on-line for the company. Being young and stupid and too lazy to read the fine-print of the web application, I unknowingly provided my personal information and became the "co-signer" to the card. Yeah, I know, like I said I was stupid. I found out about this 2 years later in 2009 when the company, I no-longer worked for, defaulted on the card and the debt collectors started rining my phone 24/7 for a massive $25,000 debt they ran up. I was still a student back then and there was no way I can pay this off. I tried to get the company to pay up, but the company was themselves bankrupted. So I was left holding the bag at the end. This was the only bad mark on my credit history. I have never defaulted or paid late on any of my other loans.
- What now?
The debot collectors eventually stopped calling, and the debt charged off in 2013. On my credit reports, it shows the date of last payment was Oct 2009. By now, 2015, the debt has passed the SOL of 3 years for Delware (where Chase Bank based). I live in NY, so DE SOL governs (NYS CPLR 202). By the end of next year, 2016, it will be 7 years and the record will drop off from my reports all together. My credit scores are all in the 730s range. I now have a graduate degree in engineering and have a stable job for the past 4 years. Our family annual income is about $66,000. We have no other debt.
- What do you want to know?
Well my wife and I just had two babies and it's getting crowded. So we would like purchase a co-op here in NYC. The price is around $200k to $250k, and we saved a downpayment of about $100k. So we are looking to borrow $100k to $150k. Do I even have a chance here, since the credit report is still showing the debt? During the mortage loan application process, will I be given a chance to explain what happened and that SOL has passed etc?
Thank you for your help.
