Getting a charge off deleted?

[crew99]

Hey everyone, new comer to the site.

Been reading alot of the success stories, and was wondering if I can get your expert suggestions on getting a charge off deleted off my reports?

I had a GMAC Home Equity line charged off/written off a few years back, but couple of months ago I called them and asked if there was anyway that I can get rid of the chargeoff.  To make a long story short, after haggling with them I paid an agreed amount and so now on my credit report it's showing a 0 balance.   Now it's showing up as a negative account still and showing off as a charged off account.  Is there anyway that I can have them get rid of the chargeoff part since I paid it? Or is it not possible to revert since it's already in the charged off status?

My main mortage was also with GMAC, which went into foreclosure before I did a modification plan.  Now it's current, and been in "ok" status for the last few years, but there's all the months back in 2008 and 2009 where's it's showing 30 days, 60  days, foreclosure, foreclosure, etc.  Is there anyway that those can be removed since now my account is all current?

Hopefully I was semi clear on explaining the situation.....im still kinda new to all of this so the terminologies are all a bit foreign.  Thanks for any input you guys may have!

[KevinBlock55]

People on here will tell you that GMAC won't GW which may be true. I would send a letter for each mortgage explaining the situation, thanking them for a mod and ask to have the derogs removed and/or the entire HELOC. I believe lenders who have modified borrowers mortgages are more inclined to remove lates. The letter should be personal. Good luck and welcome to the forum

[RobertEG]

As with any reported derogatory item, the ultimate payment or non-payment of the debt does not remove the fact of the prior derogatory item having occured, and is thus not basis in and of itself to deletion of the derogatory item.  The CRAs go a step further, instructing in both their credit reporting manual and their account agreements that prior, accurate reporting should not be deleted based on payment of a debt.

So your recourse is asking the furnisher to delete it based on their good-will, and contrary to their credit reporting agreement with the CRA.

Since no reason for deletion is required should they report its deletion, the issue of acting contrary to their credit reporting agreement is not raised with the CRA, so it can clearly be done.

A persuasive good-will request to the creditor would most likely be strengthed if it provides some beneficial business reason on the part of the creditor, such as wanting your future business.  The prior reporting that your debt had reached the level where they considered it, for accounting purposes, as unlikely to be paid, which is what a charge-off is, makes good will a bit tougher to secure.  Having, in the past, let delinquent debt go to the point of being considered "uncollectible" does not usually foster a desire on their part to continue lending.

[crew99]

So I guess my next question is, is my "chargeoff" still considered a charge off?  It showed up on my credit report before as written off or sold/transfered.  I have since then paid the balance to zero.  Doesnt that show some sort of willingness to pay instead of just letting it go completely?

[RobertEG]

Reporting of a charge-off is their reporting of an internal accouting action they took at that one prior point in time.  Once taken, it was either legitimate of it was not.  It is not undone by subsequent payment of the debt.   They considered the debt to have become uncollectible at that point in time, thus permitting them to shift the debt from a receivable asset in their books to a non-receivable bad debt. 

If the previously considered uncollectible debt is then paid by the consumer, they have some new accounting to do.  They must then revise their books to now show the actual, received asset ($$).  An accounting matter on their part that is of no consequence to the consumer.  The fact of their prior action is not negated.

It is certainly an arguably persuasive request that they consider deletion of their prior determination from the consumer's credit file once the situation changes (i.e., the debt is paid), but it is not a requirement that they do so.  The accounting time and expense necessary to "undo" their prior accounting measure might mitigate the fact of eventual payment.

[crew99]

Thank you  

I'll try and write a GW and hope for the best!!