Huge Mistake! Need some guidance Cap One Chargeoff

Anonymous · ‎05-16-2017

Hello all,

Back in 2012, suffered a huge loss, my husband. In addition to that, my vehicle was stolen during a lapse of car insurance coverage. As a result, I had a $24,000 loan that I could not afford that became a chargeoff. Fast forward to today, I am trying to apply for a home loan. I was advised by my credit union to have Capital One report my account as $0 past due because the account was charged off. It was already reporting as a $0 balance with Transunion, and not reporting on Equifax. So I disputed with Experian, and requested that the past due balance report as $0. The end result is that Capital One reported the same balance wth Experian, and updated the Transunion balance from $0 to $24,000. My score took a dive by 17points and now I have two reports reflecting a $24,000 past due balance. Does anyone have any ideas how I should proceed with this matter? Thanks in advance!

RobertEG · ‎05-16-2017

Taking of a charge-off by the creditor is an accounting measure that moves the debt from a receivable asset in the creditor's books.

It does not excuse any of the debt, which remains fully due and collectible.

There is no basis for updating the debt balance based on the reporting of a charge-off.

If the debt is paid, the creditor is then required to update the account as paid, and update the balance to $0.

That may be enough to satisfy the underwriting requirement for the mortgage lendor of paying the delinquent debt.

You can also, if able to pay the debt, offer a pay for deletion, seeking removal of at least the charge-off. You could also offer a PFD for the entire account.

Anonymous · ‎05-16-2017

@RobertEG wrote:
Taking of a charge-off by the creditor is an accounting measure that moves the debt from a receivable asset in the creditor's books.
It does not excuse any of the debt, which remains fully due and collectible.
There is no basis for updating the debt balance based on the reporting of a charge-off.

If the debt is paid, the creditor is then required to update the account as paid, and update the balance to $0.
That may be enough to satisfy the underwriting requirement for the mortgage lendor of paying the delinquent debt.

You can also, if able to pay the debt, offer a pay for deletion, seeking removal of at least the charge-off. You could also offer a PFD for the entire account.

Capital One will not offer deletion on the charge off. I just attempted that.

gdale6 · ‎05-16-2017

Capital 1 will not PFD an account. With them you need to settle it with them if they still own it and then request GW to remove the CO, the older the account is the better chance of GW (typically in 6th yr post CO). You want to stop the monthly updating so your Fico can begin to recover.