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?
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.
Locking thread, due to similar thread found here. http://ficoforums.myfico.com/t5/Mortgage-Loans/Creditor-Won-t-Charge-Off-Debt/m-p/2054077
OP, To avoid confusion-Please refrain from making duplicate posts.Lightnin, myFICO Moderator