Sold Charge offs want to pay

[debc]

We paid HSBC, they cashed the checks, but letter from them states they no longer own the account, sold to Firest Financial (no posting on credit from them) and we would need to contact them to change the status of the account to paid. This makes no sense since HSBC is the one who we paid, they are the ones on my credit. How do we remedy this and pay the other 3 HSBC charge offs that need paid for us to get a mortgage? My lender knows it will drop my score, but they need the charge offs paid, they said.

[Anonymous]

If HSBC sold the accounts, they should be reporting a $0 balance. Are they?

What is Firest Financial? Is that a CA?

HSBC can not accept payment on an account they sold, as you don't owe them anything.

[debc]

First Financial, First Financial Asset Management. The balances are zero, but the status is still Charge off. The lender stated that needs to say paid charge off. HSBC did accept the money, i have the canceled checks.

[Anonymous]

You need to contact HSBC about this.

If they sold the account, ask them where the money is.

Also, once an OC sells an account and reports a $0 balance, even if you pay the CA, it will never update to show "paid charge off" because the OC sold it and can not accept payment on that account. It will show as "charge off" and "sold/transferred/etc".

[debc]

ok, so what if i dont know who owns the accounts now? Should i just pay HSBC knowing they will not change the status, but at least i can prove they are paid...(canceled checks)

[203bravo]

Most contracts that creditors have with CAs are set in such a way that any monies they may receive on the account is transferred to the CA.  They like this since once they have any of the monies that really want to hang on it as may not send another check   

I'm a little confused as to exactly what your situation is - you currently have 5 HSBC accounts that have been charged off?  Did they apply you payments to these accounts?

You don't know who owns the account now?  You know the CA that is collecting the debt - DV them.  Also, by law, they have to send you a dunning letter no more than 5 days from their first contact with you - have you received this letter.

With the knowledge that you have currently, I would not recommend sending them any more money.  If the CA seeks legal action you don't want all your moony tied up just trying "prove" you were trying to do something.  You can open a savings account (or something of the like) and make the same payments to this account with the understanding that this is an "escrow" account if you will.

[debc]

there are 2 HSBC accts on each my husbands and mine, so 4 total. One being the one we paid to them, and they refuse to change the status. Now, as of today Midland has shown up as a buyer of another one. Fine, I will pay them. As for the other 2, I did some more digging in my files, papers at home. I have found where both of the accounts left in question have been sold over 2 times each, only becaus I found the one and only letter from them, 2 years ago! No one other than HSBC (Midland now) has ever posted on my CR. It seems if I contact the last CA, they will say sure, we still have your account, send us the monies....when I cant really know now can I. Now, we are trying to get a mortgage. The lender insist these charge offs be taken care of. I have tried DV with HSBC, they all came back as ligitimate debt. The amounts are 1185.00, 1347.00. I have made no payments on these since 2003 and 2004.

thanks for the help

[203bravo]

What is your time frame for needing a mortgage and have you spoken to a LO to discuss your situation?  Most of the time it is not necessary to wait until this information comes off your reports, but rather that are paid to a $0 balance.  They even overlook pay for less than due remarks if you can show what got you into the position to begin with and you have since taken steps to assure you are not in the same situation while you are customer with them.

Also some lenders may make it necessary to pay these accounts at the loan closing - so that they are assured the payment was made.

Really would be worth your time to take your CR to a LO (local credit union, bank??) and see what they suggest - remember they work with underwriters everyday and know what will send out red flags and what will not.

You also mention there are 2 accounts on both credit report.  I assume that these are 4 seperate accounts and not the same accounts that are reporting to the AUs account.  One in your name that your spouse was an AU and one in their name where you were an AU?

Message Edited by 203bravo on 01-22-2009 11:40 AM

[debc]

I have spoken to 2 LO's, one which pulled my CR and said they needed to be taken care of, even though they are ALL being reported with zero balances, all stating "transferred to another lender", the other LO just in speaking with him said..."with todays market, and tuffer standards, you will need to pay these off". Our lease is up 5/15/09, we are on track withour downpayment, this is the only thing in our way.

i have 2 and my husband has 2, all are different....

[debc]

bump