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Question about charge offs

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KrisNoel
Established Member

Question about charge offs

So I have just started trying to dig myself (and my husband) out of our bad credit situation.  We have had a rough couple of years, but are now on our way to catching up on everything. Unfortunately, I have two credit cards that have gone to collections early last year.  One of them my husband set up on a payment plan 16 months ago, and we are almost PIF (which I realize now was a bad idea).  The other is still there unpaid. I am planning on writing a PFD for that one this week.  My question is they are both showing as CO in the lates section as of the date they went into collection.  But in the summary section where it shows how many times you have been late, it is shows that it is still reporting 120+ days late every month.  For the one I have been paying every month, do I have any recourse?  I had hoped to GW once it was PIF, but now I am thinking there is no hope.  In my mind, since it went to Collections early last year, I would be asking them to delete the 2 120+ late that occured before it was sent to collections.  But looking at the summary, it says I have 23 (!!) instances of 90+ days late.  And I assume that will continue for the next 5 months until it is PIF.  Is there any hope there?  Oddly, neither collection account is reporting, just the original creditors, with active lates.  I am getting discouraged before I even get started.  I had hoped that once I got 12 months on time payments (which we will be on time with everything starting this month) we could try for an FHA loan.  Does this mean that clock does not start for 5 more months when the CA is PIF?

 

So, where do I go from here?  I still owe $600 to the card that I have been paying on.  Should I cancel that and request a PFD?  That doesn't seem to make sense though, because the CA is not reporting, just the original creditor.  I naively thought that once the cards were cancelled and sent to collections that the monthly section of the cards stopped, and you just had to deal with the collections account. Do I pay that early so the monthly lates will stop?

 

Ugh, I'm lost.

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1 REPLY 1
Burned2manybridgesB4
Valued Contributor

Re: Question about charge offs

Trying to decipher your explanation....

 

Two CO's. Two CO's showing balances, and lates every month.

Payment plans on both?

Both CO's showing balances?

 

If I'm right in understanding your situation, you were late, it was "charged off," then you did payment plan, but even though you're paying, it's still very much late, and will be late until PIF. CO status reporting means it was deemed non-collectable, and is just an accounting term. Once you're done paying them, it'll change to "paid CO," or "settled CO."

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