Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
Re: Charged off but making payments. Need satisfaction letter.

If I had that, I would continue to make the payments. Depending on your state, if you stop making the payments they can sue you for the full $150k because it would be a breach of contract. The reported payments should be the original mortgage amount, and not the $323 amount. If your new lender is making a fuss, maybe show them your settlement letter w/ this particular company? They probably want to know that it has been paid off vs. making payments on it. 

 

As far as the charge-off comment goes on your CR, the step that should have been taken is a PFD letter. In essence, it says that you'll agree to pay $x in exchange for a deletion, and that if they agree to that, they are to respond in writing. Once it is paid off, then they'll delete. It really is for the one-payment plan as opposed to monthly installments. There's no incentive to delete the bad references before it's paid.