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Frequent Contributor
jake619
Posts: 496
Registered: ‎11-13-2012
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Understanding Status vs. Remarks in CR

I had a mortgage short sale a few years ago.  At the time I couldn't have cared less as my credit was in the tank, but lately I've been attacking the CB's trying to get anything cleaned up I can.  When I was reviewing the mortgage loan I noticed the status field contradicts the remarks they inserted.  So I'm thinking the status is derived from the codes the creditor assigns to the account and is used in FICO scoring, and the remarks are a free-text field that would not be a FICO factor but would be considered on manual reviews.  Does this sound correct?  Any insight would help.


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AH64
Posts: 3
Registered: ‎11-16-2012
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Re: Understanding Status vs. Remarks in CR

Same question, it doesn't look like anyone answered the question or bounce

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guiness56
Posts: 22,408
Registered: ‎01-17-2008
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Re: Understanding Status vs. Remarks in CR

New Member
AH64
Posts: 3
Registered: ‎11-16-2012
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Re: Understanding Status vs. Remarks in CR

Capital one is giving Equifax a status on an account that was settled, below are the items in question.

Shouldn't the status be changed once it is paid in settlement?

 

1) Balance:$0 Past Due: $0 Acct Status: CHARGE-OFF 2) Current Status: CHARGE-OFF 3)
Comments:Account paid for less than full balance, Charged off account  
  My Fico is giving the status of
 Previously reportedNewly reported
Balance:$0 
Past due:$0$0
Status:Bad Debt; Placed for collection;Bad Debt; Placed for collection;
Last activity:5/1/20085/1/2008
Description:Settlement accepted on this account Charge off account Amount in H/C column is credit limit Closed or Paid Account/Zero Balance Settlement accepted on this account Charge off account
     and on Equifax CF this activity description
Activity Description:

Paid and Closed

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guiness56
Posts: 22,408
Registered: ‎01-17-2008
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Re: Understanding Status vs. Remarks in CR

AFAIK the status of the account should say paid after CO or along those lines.

 

It is showing paid and closed so who ever sees it will know it is paid.  It isn't going to make a difference in your score either way.

Valued Contributor
AndySoCal
Posts: 1,895
Registered: ‎04-07-2009
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Re: Understanding Status vs. Remarks in CR

@ Jakes The settled account will affect the FICO the score. The status of the account is correct a settled account is a legally paid account for less than  full balance.. The remark is added to notate that it was for less than full balance.  Was this a short sale of some type?

 

@AH64   The status of the account is correct a settled account is a legally paid account for less than  full balance..  Basically this was  a collecition or charge off account that was settled for less than full balance.  Also could be reported as a paid collection ro a paid charge off account. Is that reporting not correct?

Equifax My FICO score 815 5/28/2012, 818 on 7/28/2014 . Average of Accounts 12 years and no Installment accounts. MyFICO TU 810 6/26/2012 809 4/21/2013 MyFICO XPN -805. 2/26/2014 Discover TU FICO 813 App free since 9/2011
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guiness56
Posts: 22,408
Registered: ‎01-17-2008
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Re: Understanding Status vs. Remarks in CR

[ Edited ]

AndySoCal wrote:

@ Jakes The settled account will affect the FICO the score. The status of the account is correct a settled account is a legally paid account for less than  full balance.. The remark is added to notate that it was for less than full balance.  Was this a short sale of some type?

 

@AH64   The status of the account is correct a settled account is a legally paid account for less than  full balance..  Basically this was  a collecition or charge off account that was settled for less than full balance.  Also could be reported as a paid collection ro a paid charge off account. Is that reporting not correct?


A settled account is scored on par with the CO.  You are trading one negative for another so it isn't going to cause the score to drop.

 

The status of the account says bad debt/collections.  It should say paid.  The comments are ok.

Valued Contributor
AndySoCal
Posts: 1,895
Registered: ‎04-07-2009
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Re: Understanding Status vs. Remarks in CR

@Guiness56 With Jakes atrade line there is no indication that is was ever a charge off. IWth Ah64 yes I would agree with your statement.

Equifax My FICO score 815 5/28/2012, 818 on 7/28/2014 . Average of Accounts 12 years and no Installment accounts. MyFICO TU 810 6/26/2012 809 4/21/2013 MyFICO XPN -805. 2/26/2014 Discover TU FICO 813 App free since 9/2011
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guiness56
Posts: 22,408
Registered: ‎01-17-2008
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Re: Understanding Status vs. Remarks in CR

I don't see where he posted exactly what was written.  However, a settlement is scored on par with the CO, collection, foreclosure, short sale, etc.

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AH64
Posts: 3
Registered: ‎11-16-2012
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Re: Understanding Status vs. Remarks in CR

@guiness56 So if I under stand you correctly; on the status of an account it dose not matter if the OC is reporting Charge off when the account was settled.

If that is the case I will stand down. It just seems to bother me when i am looking at Myfico and see the statement of Bad Debt placed for collections when equifax account status says Charge off. The Myfico sounds much worse than what it is.  


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