Should I pay these charge offs?

[Anonymous]

I have two charged off accounts:

Capital One - Balance is $689. Last payment Nov 01, 2009

Synchrony Bank/JC Penney (NCI is collection agency) - Balance is $885. Last payment Jan 01, 2010

My biggest question is if I'm looking to buy a home... should I pay? I have asked Synchrony Bank/JC Penney to validate the debt because they were previously reporting this as charged off due to bankruptcy which was incorrect. The Capital One may be valid but if I were looking to get a mortgage loan in the next month or so, would it really do me much good to negotiate now? Would it be much benefit to negotiate and wait a few months to get the loan? Any advice is great!

Currently, these are my FICO 8 scores through credit check total: 

Experian - 675

Transunion - 686

Equifax - 672

[BrianKill]

You should leave them alone and go through the mortgage app process.  Are those your FICO 04 mortgage scores?

If they suddenly update those accounts. you could take a 20 point hit.

Wait and see if the underwriters require you to pay them off.

Also, what is the statute of limitations in your state?

[Anonymous]

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@BrianKill wrote:

You should leave them alone and go through the mortgage app process.  Are those your FICO 04 mortgage scores?

No, these are my Fico 8 scores from checkcredittotal.com

If they suddenly update those accounts. you could take a 20 point hit.

Wait and see if the underwriters require you to pay them off.

Also, what is the statute of limitations in your state?

I live in Alabama. I think it is 6 years.

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[RobertEG]

I would suggest an informal chat with your prospective lendor.

Some will require payment of any unpaid, delinquent debt as a pre-condition to any loan approval.

If they do, then you will be required to pay, and it would be best to begin a possible PFD or settlement negotiation prior to loan application.

[Anonymous]

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@Anonymous wrote:

I have two charged off accounts:

Capital One - Balance is $689. Last payment Nov 01, 2009

Synchrony Bank/JC Penney (NCI is collection agency) - Balance is $885. Last payment Jan 01, 2010

My biggest question is if I'm looking to buy a home... should I pay? I have asked Synchrony Bank/JC Penney to validate the debt because they were previously reporting this as charged off due to bankruptcy which was incorrect. The Capital One may be valid but if I were looking to get a mortgage loan in the next month or so, would it really do me much good to negotiate now? Would it be much benefit to negotiate and wait a few months to get the loan? Any advice is great!

Currently, these are my FICO 8 scores through credit check total: 

Experian - 675

Transunion - 686

Equifax - 672

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Do you know the date of first delinquecy on the charge offs, you might be able to get an early exclusion. Or possibly wait till Febuary and use the SOL to leverage a pay for delete at a reduced amount.

[Anonymous]

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tel12 wrote:

Do you know the date of first delinquecy on the charge offs, you might be able to get an early exclusion. Or possibly wait till Febuary and use the SOL to leverage a pay for delete at a reduced amount.

Date of First Delinquency for the Capital one is: 12/2009

Date of First Delinquency for Synchrony Bank/JCP I think is 1/2010.

NCI(collection agency) has tried to offer me a deal on the JCP account for half of what the account balance is but I am having them verify exactly what the charges are for before I go anywhere. During this discussion they said they didn't have any control over how Synchrony Bank/JCP reports the account if I were to pay. Additionally everytime I try to call SynchronyBank/JCP they direct me straight to NCI without even talking to me.

No one has contacted me concerning the Capital One so I think they still have it.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Do you know the date of first delinquecy on the charge offs, you might be able to get an early exclusion. Or possibly wait till Febuary and use the SOL to leverage a pay for delete at a reduced amount.

Date of First Delinquency for the Capital one is: 12/2009

Date of First Delinquency for Synchrony Bank/JCP I think is 1/2010.

NCI(collection agency) has tried to offer me a deal on the JCP account for half of what the account balance is but I am having them verify exactly what the charges are for before I go anywhere. During this discussion they said they didn't have any control over how Synchrony Bank/JCP reports the account if I were to pay. Additionally everytime I try to call SynchronyBank/JCP they direct me straight to NCI without even talking to me.

No one has contacted me concerning the Capital One so I think they still have it.

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Can you tell who is reporting the collections is it the original creditor or a collection agency?  If you are't sure include a screen shot of the entry on the credit report (redact any personal information) if you can.  Once you know who is reporting then you know who to make the pfd agreement with just be sure to get it in writing first.

[Anonymous]

I know for a fact that Synchrony Bank/JCP is the one who is reporting the account. However, they won't talk to me and NCI won't negotiate a PFD with them. The only way NCI told me to get a PFD is to discuss that with Synchrony Bank/JCP "after" I pay NCI... 

[Anonymous]

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@Anonymous wrote:

I know for a fact that Synchrony Bank/JCP is the one who is reporting the account. However, they won't talk to me and NCI won't negotiate a PFD with them. The only way NCI told me to get a PFD is to discuss that with Synchrony Bank/JCP "after" I pay NCI... 

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If you pay you can try a goodwill letter to get Synchrony to remove it though there is no guaranty that they will remove it or you can just wait for it to drop off.  About three months before it reaches the seven year mark you can attempt and early exclusion.  When you try for the mortgage they will tell you if it needs to be paid prior to closing.