Charge Offs

[Cooki844]

Hi 

Love this place...

Question about charge offs

I want to  determine when they will fall off my report. Some of the Dates of Deliquency ate 8/10. I dont want to disturb a sleeping bear. I live in Florida and the Statute of Limitations is 5 years. I am looking to apply for a mortgage in September. 

Should I investigate .....they show zero balance ...sold to another creditior...

What should I do if out of nowhere they ahow up as a collctions....Do I have to be notified by mail prior to a collection?

Anyinfo/advice on how to handle chargeoffs much appreciated 

thanks

[Anonymous]

It will stay on your credit reports for upwards of 7 years. SOL doesn't change that, since it's separate. DOFD and start of SOL in your jurisdiction could be somewhat different. September is probably ok, but October or later to be safe.

Biggest issue is the mortgage will likely be a no-go until you settle the debts. How you proceed depends on how large the total debt is and how important it is to get a mortgage now verses waiting until mid-2017 (you can likely request early exclusion from the credit bureaus around then).

Be aware applying for a mortgage will alert creditors, including some that may not be on your reports. Yes, collections can appear out of nowhere, especially if it's the original creditor. They may send a letter first, but that doesn't always happen. Plus, many will update their trade-lines (TLs) frequently dropping your credit scores. And, to top it off, many will be less willing to negotiate for less than full payment, because they know mortgage lenders, regardless of SOL, want the debts paid.

On a related topic, regardless of whether you settle the debts, your credit scores / profile (scores alone aren't everything) may not be sufficient to qualify for a mortgage in the near future with good terms (less lender options; paying higher rates). Also, unless your finances have greatly changed, you may end up taking on more debt than you can afford.

[gdale6]

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@Cooki844 wrote:

Hi 

Love this place...

Question about charge offs

I want to  determine when they will fall off my report. Some of the Dates of Deliquency ate 8/10. I dont want to disturb a sleeping bear. I live in Florida and the Statute of Limitations is 5 years. I am looking to apply for a mortgage in September. 

Should I investigate .....they show zero balance ...sold to another creditior... Leave them alone

What should I do if out of nowhere they ahow up as a collctions.... Offer the PFD   Do I have to be notified by mail prior to a collection? No it can report first before they send you dunning. I would be finding out who those debts were sold to and be getting contacting them to pay in exchange for them not reporting. As stated a mortgage pull will bring them to the table and you will have to settle them prior to close.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/...

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

Anyinfo/advice on how to handle chargeoffs much appreciated 

thanks

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[RobertEG]

Each reported monthly delinquency will become excluded no later than 7 years from its date of occurence.

In the case where the creditor has also reported a charge-off, it has a separate exclusion date that is no later than 7 years plus 180 days from the date of first delinquency that in the chain of delinquencies that immediately preceded the charge-off.  What is the DOFD?

Additionally, matters can get worse if the creditor either assings collection assistance to a debt collector, or sells the debt.

If the debt is sold to another, the original creditor must immediately update the debt balance on their account to $0.

However, if the creditor only assigns collection authority and retains ownership of the debt, the debt balance remains under the OC reporting.

If either occurs, the debt collector can also report their collection without any prior notice to you, adding an addtional major derog to your credit report, and additonal complications in getting either or both removed.