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Any advice about this old charge off?

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Established Member

Any advice about this old charge off?

I am in the process of trying to obtain a mortgage. I spoke with 2 lenders and they told me things that I needed to do in order to "attempt" to qualify.

a. Pay a judgement <$850 (can by done next month)

b. Get CC balances down to <$100 (can be done next month)

c. Pay off charge off from Cap 1 auto. I got in an accident in 2007 in which my car was totaled but was not completely paid off by insurance. I owe a litte over $6,000. They have never sent it to collections or tried to collect from me. They update the account every month on my credit report. It is scheduled to "fall off" in 2/2014. The loan officer said they need a letter from Cap 1 saying that they will I guess forgive the loan or that I can set up a payment plan that will be included in my DTI. I told her that I is scheduled to fall off and she said that it doesn't have to and that it can stay on my report forever. I've never heard this and I'm thinking she is just trying to scare me into paying it so she can get my business ASAP. What I'm afraid of is that if I set up a payment plan it will restart the SOL and they will be able to sue me as soon as I submit payment.

 

I'm not sure what I can do. I really want to buy now because it will save me alot of money per month between renting and buying. I just don't want to hurt my credit in the process. Please help.

Message 1 of 4
3 REPLIES
Frequent Contributor

Re: Any advice about this old charge off?

I curious to see how the experts tell you to handle this. I have one with KMF with a deficiency balance of over $12000!  They haven't done anything with it. They haven't even reported it, it just sits on my report since 2008.  It is scheduled to come off 01/205 but I want to get a mortgage loan before that. I have heard that different LO's will say different things about it and I just have to find one that will take it. I don'tknow, I would rather have it gone but don't want to wake the sleeping giant for no reason. It is out of SOL:.




last app 11/13/2013 gardening for at least a year
Message 2 of 4
Established Member

Re: Any advice about this old charge off?

I too am in the process of correcting my credit. when i went to talk with a mortgage broker in Jan. 2013 I brought in my tri-merge reports from Oct. 2012. Long story first mortgage lady was not the one for me. Any how I went in and met with her to get on the right path. she gave me LOTS of good advise but also quite a bunch of mis-information. She also told me to pay EVERYTHING even the 2 items that were due to fall off in April 2013 and June 2013. But she also said dont pay unless they will DELETE. So I listened for the most part. prepared PFD's for everything but the 2 due to fall off. well the one in April FELL OFF. the one from June....not yet....we will see!

10/2012-lender pull--TU-536-EQ-556-EX-550
myFICO Pull 8/10/2013--TU-690-EQ-657-EX-640
8/2013 Lender Pull---TU-671--EQ-657---EX-667
Message 3 of 4
Epic Contributor

Re: Any advice about this old charge off?


skinsfan83 wrote:

I am in the process of trying to obtain a mortgage. I spoke with 2 lenders and they told me things that I needed to do in order to "attempt" to qualify.

a. Pay a judgement <$850 (can by done next month)

b. Get CC balances down to <$100 (can be done next month)

c. Pay off charge off from Cap 1 auto. I got in an accident in 2007 in which my car was totaled but was not completely paid off by insurance. I owe a litte over $6,000. They have never sent it to collections or tried to collect from me. They update the account every month on my credit report. It is scheduled to "fall off" in 2/2014. The loan officer said they need a letter from Cap 1 saying that they will I guess forgive the loan or that I can set up a payment plan that will be included in my DTI. I told her that I is scheduled to fall off and she said that it doesn't have to and that it can stay on my report forever. I've never heard this and I'm thinking she is just trying to scare me into paying it so she can get my business ASAP. What I'm afraid of is that if I set up a payment plan it will restart the SOL and they will be able to sue me as soon as I submit payment.

 

I'm not sure what I can do. I really want to buy now because it will save me alot of money per month between renting and buying. I just don't want to hurt my credit in the process. Please help.


Once you pay off the judgment see if your state allows to vacate satisifed judgments.

 

For the best score boost. have all but one CC report a 0 balance and the other at 9% or below.

 

If the account was charged off or sent to collections it will have a DoFD and will be excluded no later than 7.5 years from that date.  It cannot stay forever.  Depending on your state laws, setting up a payment arrangement can restart the suing SOL

Message 4 of 4