Rebuilding Your Credit

[sammc1987]

I have recently applied for a mortgage.  I am pre-approved but now they want me to write letters explaining my credit situation for my accounts under collections.  They keep telling me to explain how it is temporary in nature,  beyond your control, and/or(?) not likely to happen again.

My question is...

Has anyone delt with these before?

Do they want you to pick one and explain on that? If so - Is there one that looks better then the other?

Are they looking for you to explain how it applies to all three?

Any help on this matter will be greatly appriciated.

Thanks!

[jmack711]

When I applied for my mortgage. I was told all collections had to be paid prior to me being approved. Is there any way you could do PFD for the collections? I've never heard of anyone having to just write a letter to explain the reasoning.

[sammc1987]

I have tried a PFD and the creditor won't accept. The accounts are old and are going to fall off next year so I am not wanting to pay them off and them be on my report another 7 years! They want me to explain and I guess if I have a justified reason for the collections of won't look as bad. They may make me pay them which I dont have a problem with to get a mortgage but I am not going to pay them at this point because it will hurt me more then it will help me.

[jmack711]

From my understanding (and I may be wrong), but I thought the account could only remain on your report 7 years from the DOFD. I don't think paying them will hurt you as long as they are reported properly on the report after payment. I would continue trying for a PFD if you can pay them anyways. Trying going through high level executives to get cooperation.

[sammc1987]

No an account will be reported to the credit beureus when a new activity has happened on the account (payment of any kind), this will then change the reporting date to when you last paid, so if you pay it off it will take 7 years for it to fall off your report.

[kitty9779]

---

sammc1987 wrote:
No an account will be reported to the credit beureus when a new activity has happened on the account (payment of any kind), this will then change the reporting date to when you last paid, so if you pay it off it will take 7 years for it to fall off your report.

---

I don't think this is accurate.

[jmack711]

True enough the credit bureau must update the date of last activity if you pay it off but the fact still remains that it can only be reported for 7 years from the DOFD. I've encountered this issue before and the item did indeed come off on time and was not extended another 7 years due to a payment.

[sammc1987]

Idk i heard that they stay on 7 years from last activity.. A lawyer told me that.

[Shogun]

The lawyer told you wrong.  The DOFD is what sets the clock for both the SOL and the CRTP of a debt.  The DOLA has no bearing on it.