It cant be put back on your CR once the 7 years have run. You have 2 choices either accept the settlement, this wont affect your CRs either and if it does you have major violations and pay or send a FOAD letter if you dont want to hear from them anymore.
A mortgage company is most likely going to ask for a full factual report so anything not deleted from the CRAs records is going to show even if its past 7 years. CRAs typically purge items after they hit 10 years (they just dont have the capacity to keep records forever, A GOOD THING) so anything within the last 10 years is likely to show on a mortgage app.
@AnniFridFour wrote:Great - and I'm pretty sure this is actually from over 10 years ago so it wouldn't even show up in a total report. So no downside to just telling them nothing.
Nope, as long as old debts are past your states SOL there is nothing they can do and if you live in WI all CA efforts must stop once the SOL is expired. When I hear from CAs, I have a few trying to collect "Zombie debt" over 13 years old now I just put them in the file with the rest of their communications and never respond in any way.
@guiness56 wrote:
@gdale6 wrote:It cant be put back on your CR once the 7 years have run. You have 2 choices either accept the settlement, this wont affect your CRs either and if it does you have major violations and pay or send a FOAD letter if you dont want to hear from them anymore.
A mortgage company is most likely going to ask for a full factual report so anything not deleted from the CRAs records is going to show even if its past 7 years. CRAs typically purge items after they hit 10 years (they just dont have the capacity to keep records forever, A GOOD THING) so anything within the last 10 years is likely to show on a mortgage app.
Negative, unpaid debt is not purged from the CRAs after 10 years. It will remain until paid.
Only positive accounts in good standing are purged.
I question this, I bought house in 2002 with a CO from power company in Sep 96 I explained why I would never pay it, the mortgage was approved. I refi the mortgage in Oct of 2003, a full factual was pulled and this CO did not appear on the report, I did not dispute it off either. Can you point me in the direction of the where the law is on this?
@guiness56 wrote:FCRA.
The CRAs could have done so but I not sure they are supposed to. I had one pulled and it had debt from eons ago.
Ok thx. Sorry to hear of debt from eons ago.
@NWintellectual wrote:When applying for the home loan, if some of this old "zombie debt" appears unpaid, does it still have to be settled in order to get approved for the mortgage? How would one go about obtaining such a report, aside from applying for a mortgage, of course.
I have been researching this and there is so much contradictory info on it, there is info straight from EX that says that negative items are in fact deleted after 7-10 yrs and they dont keep them around. The full factual is not really what it is stated either as it doesnt give positive loan experience. There are very few that even get this anymore its expensive. The full factual can also apply to reports that are compiled from at least 2 CRAs with each entry being verified manually. IMO I wouldnt worry too much about it and if you run across a lender that wants one I would just walk away and find another lender.
Adding: It seems there is no way to even order such a report for ones perusal of his/her own "file" but if one is used against you according to the FCRA you must be supplied with such report, failure to do so is a violation of law and even then I have found no way to order such a report.