Loan Officer and Statute of Limitations?? So Confused!

[EmmaBelle]

I read all the time and rarely post but I am so confused about this.

We are in the process of getting a VA loan. My husband has an old collections on his report for less then $500 to Dish Network. Our loan officer told us that as of Nov 1 he exceeds his SOL and we can send a letter to get this collections deleted so we can move on with our VA process. But I'm so confused because everything I have read about SOL only says its the time period of when they can sue....not that after SOL you can request it deleted?

She's been in the business for over 15 years so I'm sure she knows what she's talking about I'm just really confused about how that works???

Anyone else been through this?

[StartingOver10]

She is confused. Just because the collection is past the SOL doesn't mean it gets deleted from your CR. Not all loan officers are knowledgeable in the credit area. Is that an u/w requirement that you have no outstanding collections? If so why can't it be paid at closing?

[themizlyne]

You could contact Dish to see if they are willing to settle and delete. Maybe offer $100.

[StartingOver10]

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@themizlyne wrote:
You could contact Dish to see if they are willing to settle and delete. Maybe offer $100.

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This could be a problem if you pay it. Its old now. If you pay it at the closing table your score won't tank if they insist on having it paid.

Or, just find another lender without that particular requirement.

[CAnNY]

Are you in NY? If so and the collection is paid in full according to the NY CRTP a paid coll can not report more than 5 yrs. This is how I got one of my collections removed.

Good luck!

[Walt_K]

How old is the collection?  While it is true that the loan officer is muddling concepts, it's not clear which way she is muddling them.  Perhaps she is saying SOL but means CRTP.  Once it passes the CRTP though, it should get deleted on its own. 

[EmmaBelle]

The collections is from an old Dish Network account in TX from 2009. She told me Texas' SOL or whatever (please forgive my lack of knowledge with this terminology!)  was 4 years and as of Nov 1 we could send the letter to the bureaus to have it taken off. I have a meeting with her this afternoon to submit some of our final papers(bank statements, husbands military orders etc) and she said she was going to help me get the letters sent out to have this collections taken care of.