Old Debt question for ML.....

[Raisingthescores]

Just a quick question.. I am working on my credit and I wanted to buy house in 3-6 months.... Does anyone know if a charged off reposession (DOFD 1/2009)  for 16k  will affect my chances of being approved???  Does this account have to be off my report before I apply??? It is scheduled to fall off 1/2016 so I am just trying to figure out if I can just wait it out or do I have to pay this? I do not have the money to PIF and even a percentage would be near to impossible... Payment arrangments is about all I could do but if it wont hurt my ML then I would just rather let sleeping lions lie until I get approved and cloe on my house and then take care of this debt... any suggestions?  Thanks!

[DallasLoanGuy]

let sleeping dogs lie......

it will likely not need to be paid.

do you know statute of limitations in your state?

[Raisingthescores]

SOL in Texas is 4 years.  I am clear of the 4 years so that is why I was unsure exactly what to do with this account.. Thanks so much!

[DallasLoanGuy]

some lenders will hassle you over this..... not all.

i would just go by the automated underwriting findings..... and i have never seen them ask for collections to be paid.

occasionally the au findings will mention the account and how it might affect the first lien on the mortgage. in these cases, i send the credit to our closing attorney who will write an opinion letter for the underwriter about how it cannot attach to your mortgage given the age.... and it is all but ignored except for a little letter of explanation.

now, this is still part of your credit profile.... so automated underwriting doesnt have to give an approval.... but if it does, this account is not a problem after that