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Credit Union Equity Loan - Charge Off help needed

New Member

Credit Union Equity Loan - Charge Off help needed

Hi -

 

I am hoping someone might be able to assist me.  I have been lurking for a while and trying to utilize the advice I have found on this forum.  Two and a half years ago I had to short sell my house in one state after I moved to another state for a job relocation.  My mortgage is reporting as I anticipated, showing I owe a balance of $0 and it shows settled for less than owed.  The EL I had on the home for renovations we did, is showing as a charge off, with a balance of 40k still.  The agreement (that I have in writing from the CU) says they will release the loan and report the balance as $0, at closing, after I paid them close to $10,000 in cash.  (Pay for removal- the verbage of the document says clearly that I will be realized of my obligation. ) 

 

I have for months, called, sent email GW letters and I have sent certified letters to the people I was involved with in regards gaining approval for the closing of the home, paying the money owed etc.  I have heard nothing in response to my efforts and nothing has been changed on my credit report.  

 

What, if anything, can I do now.  I really want to get this corrected, so I can begin to work on attaining a loan (if possible) to buy a new home in my new state.  

 

This is the only (granted it is major) negative on my credit report.  I have no other debt collections etc. 

 

Thank you so much for your assistance.  I am at my wits end! 

 

 

Message 1 of 7
6 REPLIES
New Member

Re: Credit Union Equity Loan - Charge Off help needed

Hi again,

 

Perhaps, I should list what I believe my next step should be and you can tell me your thoughts. 

 

Do I now send my dispute to the Credit Unions?  With my proof of payment, HUD documents and the Satisfaction of Mortgage letter?  I was hoping for a GW adjustment from the credit union.  Or do I keep pursuing the credit union GW adjustment option?  I realize that still showing I settled less than owed on my credit reports isn't ideal.  But, I do want the outstanding 40,000 to be taken off. 

 

Thanks again for your help!

Message 2 of 7
Moderator Emeritus

Re: Credit Union Equity Loan - Charge Off help needed

Hello and welcome to the forums.  So from what I'm understanding, you paid the $10,000 as a settlement?  Does it now show $40,000 owed or does it show it as charged off?

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 3 of 7
New Member

Re: Credit Union Equity Loan - Charge Off help needed

It shows:

 

$40,000 as past due (balance) and yes, it shows pay status as "charge off"  

 

Where as my mortgage shows, a zero balance and settled for less than full balance.

 

I was under the impression the credit union would report the same way.  I was very careful when crafting my short sale that  I wanted to be realized of liability of the debt so I essentially had them draw up the Satisfaction of Mortgage stating that I would be released of my obligation under our agreement for the payout at the closing of the home.

 

 

Thoughts?  

 

Message 4 of 7
Moderator Emeritus

Re: Credit Union Equity Loan - Charge Off help needed

If you have documentation that the loan is satisfied, perhaps a dispute is in order with the CRAs.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 5 of 7
New Member

Re: Credit Union Equity Loan - Charge Off help needed

So, wanted to reply and see if anyone had more help for me. 

 

I did as Shogun said and disputed everything through the CRA's.  Two came back saying they corrected the reporting and Experian said it couldn't correct it.  

 

Do I try again with Experian, or where do I go from here? 

 

Thank you so much for your time! 

 

 

 

 

Message 6 of 7
Moderator Emeritus

Re: Credit Union Equity Loan - Charge Off help needed

You have an agreement in writing from the OC that this would be settled/paid and $0 owed.  I would start with the OC, or rather I would probably have my attorney write to the OC that they have failed to follow their agreement.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 7 of 7