Help!!! One bad account keeping me from applying for a mortgage loan

[alinaro_77]

Hi everyone.

I want to buy a house in the next 3 to 6 months. My fico scores are 629 equifax,  771 transunion and 664 experian obtained through quizzle.com.

I have one bad account reported by two different banks on equifax and experian, hence the lower score compared to transunion. It's an auto loan, I only owe 1,197 on it but in 2008 when the last two payments($354 each) were ,due the original creditor, TIB Bank of the keys tried to charge me $9,000 for extra insurance they claimed they paid on my behalf. I refused to pay the $9,000, disputed it and the bank took it off my credit report. Anyway, I never sent the last two payments, they never contacted me again and for years I just neglected to check on the account or on my credit score.

About a year ago I finally realized I need to  check my credit score. In September 2012 Capital Bank charged off my auto  loan account. I contacted them wanting to reach a settlement or pay in full in exchange of them taking the negative reporting off my credit. They refused to talk to me on the phone saying I need to fax them a letter with my information and a request to be contacted. Is this a normal procedure? I felt like they were trying something fishy... In the meantime I hired Lexington Law to try and get the negatives off but they only succeeded in taking one off and Capital Bank is still reporting the loan as a charge off every month.

What's my best course of action to get rid of this? I'm prepared to pay it in full. Will this help my score and help me get a mortgage loan? I'm getting very frustrated  since I have to move in the next 6 months and I don't want to waste money with first , last and security.

Please help, I feel like I'm not getting anywhere!!!

[fishbjc]

 Did they feel they should charge you 9000 on ins?  Didyou actually have your own ins?

Pif you did have ins, do you have proof?  No way in hell would I pay them 9 k for something theybdecided

[alinaro_77]

They told me I didn't have sufficient insurance on the car. I read the contract and they were supposed to notify me if they decided my insurance was not enough and give me the option to buy the extra insurance. They never notified me . I asked them to send me recites with the payments they claimed they did on my behalf and all I received were some papers with no signatures or dates, I could have printed them on my computer. Finally they offered a $900 settlement. My late husband , who was on the loan as well, asked them for a letter that would state once we pay the 900 the account is considered paid in full. The lady said they won't send such a letter. This happened in 2008. We never heard from them again. When I checked my report last year I saw the account as delinquent for $1,197. There's no trace of the $9,000. So all I have to pay now is the amount mention above but when I called Capital Bank, the new owner  of the loan , they refused to talk to me on the phone and asked  me to send them a letter. What should I do?

[Shogun]

Send them a GW letter stating what you've put on here.  See how they respond.

[alinaro_77]

Should I offer a settlement or tell them outright I will pay the full amount? I really want this off my report.