Past SOL broker told me to pay for underwriting- HELP

[dobirdsmommy]

So even though my credit looks like well horrid... I am only 7 points from my middle score being high enough..

I was very shocked.. my FAKO scores are all low 500s and Lender pull for DH middle score was 635 and my middle was 613.

He said underwriting for FHA will overlook collections to a point.. One is 3742 for University of Phoenix and past SOL by 4 months.. He said they will demand a payment or settlement letter.. I am soooo torn...

I filed a report with the BBB for illegal tactics and cited their own employees email that their business tactics are to tell people we will get you financial aid and then once they are into 3-6 classes tell them nope sorry. 

Should I wait for that or send them a letter stating look its past SOL just acccept 10% and call it covered?

[RobertEG]

I would not wait for BBB "action."  They will write a letter to the creditor, but they have no standing to bring legal action.  You cant predict how or if the creditor will take any action based on any inquiry from a BBB. 

You are apparently in the position of having to settle the debt now.  The creditor may accept a settlement offer, but can refuse, and ask for full payment.

Being past SOL may influence their acceptance of a settlement for less, but they may counter with a higher amount, say 50%.  Or they may not respond at all within the period you need to satisfy the debt.   So you may be left in limbo.

The only sure way is to pay in full.

[rckstrscott]

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@dobirdsmommy wrote:

So even though my credit looks like well horrid... I am only 7 points from my middle score being high enough..

I was very shocked.. my FAKO scores are all low 500s and Lender pull for DH middle score was 635 and my middle was 613.

He said underwriting for FHA will overlook collections to a point.. One is 3742 for University of Phoenix and past SOL by 4 months.. He said they will demand a payment or settlement letter.. I am soooo torn...

I filed a report with the BBB for illegal tactics and cited their own employees email that their business tactics are to tell people we will get you financial aid and then once they are into 3-6 classes tell them nope sorry. 

Should I wait for that or send them a letter stating look its past SOL just acccept 10% and call it covered?

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Well; Here is the thing.

You are buying a house. So you lost all leverage you had with it being past the SOL. You may think 10 percent is fair, but businesses aren't stupid. They usually assume there is a reason behind all of a sudden you contacting them to pay off this debt. And now, you don't have time to wait them out.

If you are going FHA, you have to pay or make it go away. I would just call and ask to settle, see what they come at you with first personally. Once you know if they are flexible or not, you can decide what to offer from there.

-scott

[GoodCredBen]

In addition to that, i would check with multiple lenders....

The problem is some may REQUIRE you to pay off collections over XXXX amount before providing funds.... even if the bill has been dropped. 

[GoodCredBen]

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@rckstrscott wrote:

If you are going FHA, you have to pay or make it go away. I would just call and ask to settle, see what they come at you with first personally. Once you know if they are flexible or not, you can decide what to offer from there.

-scott

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I dont think that FHA says that any more, there was a post on here about it in the mortgage forums... that part of the bill "requiring all collections that equal 1000 or more, to be resolved" was removed as of 7/1 or 6/1 

[dobirdsmommy]

Correct and when I asked the broker about that, he said he was not caught up to date on the new laws of the FHA. SCARY.

 I wish I knew how to paste a pic in here of how it is reporting on my EX

I got it deleted from TU and EQ

[rckstrscott]

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@dobirdsmommy wrote:

Correct and when I asked the broker about that, he said he was not caught up to date on the new laws of the FHA. SCARY.

 I wish I knew how to paste a pic in here of how it is reporting on my EX

I got it deleted from TU and EQ

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Where was this rule when I had to bust my rear to pay down all my collection accounts hah

I closed less than a month ago... oh well, at least I am collection debt free, so I suppose it was worth it..

-scott

[dobirdsmommy]

it says date opened 3/2006

first reported may 2007

date of status 6/2007

type Installment

terms 1 month

credit limit 3742

high balance not reported

status

account charged off 3742 written off

3742 past due as of 2012

this account is scheduled to continue on record until 12/12

this item was updated from our processiong of your dispute in apr 2012

[rckstrscott]

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@dobirdsmommy wrote:

it says date opened 3/2006

first reported may 2007

date of status 6/2007

type Installment

terms 1 month

credit limit 3742

high balance not reported

status

account charged off 3742 written off

3742 past due as of 2012

this account is scheduled to continue on record until 12/12

this item was updated from our processiong of your dispute in apr 2012

---

Ugh.. I am usually not one to advocate not paying a debt, but... man.. so close to falling off due to CRTP, and it isn't within the SOL ---- I would find a different lender who will work with you if it isn't required to be paid off by FHA.. OR maybe offering that real lowball settlement offer like you mentioned before.. or wait 5 months.

-scott

[FrugalRican]

DOFD "seems" to be May 2007.

That would place the "drop-off" date at least at May 2014... still quite a while to it ceases to be on the credit report.

Why is it saying it'll come off 12/2012?

That's kind of confusing.