04-11-2013 01:47 PM
I have a client that has mortgage loan that was sold to a mortgage collection company and the mortgage collection company is stringing 120 day late payments along and they won't charge-off the debt even though is has not been paid in a couple years. Isn't there federal regualtion that requires them to charge-off the account? Can they continue to post 120 late payments on the account as if they account is open?
04-11-2013 05:35 PM
I don't think there is any law that says a creditor HAS to charge off debt. Most creditors charge it off simply for tax purposes, they can take a write off for the debt.
04-17-2013 09:56 PM
Locking thread, due to similar thread found here. http://ficoforums.myfico.com/t5/Mortgage-Loans/Cre
OP, To avoid confusion-Please refrain from making duplicate posts.Lightnin, myFICO Moderator