topic Re: Settling Old Debt Past SOL in Rebuilding Your Credit

Settling Old Debt Past SOL

Anonymous — Mon, 18 Mar 2013 23:49:52 GMT

For all the experts out there, I was wondering if is it worth settling an old debt that is past the SOL in my state and also due to fall off my credit report with DOFD's dating back to 07/2006, 01/2007, 03/2007, and 11/2007? The only reason why I am asking this is because my spouse and I are cleaning up our credit so we can hopefully apply for a mortgage in about 3 to 4 years from now. I really would hate for any zombie debts to all of a sudden pop up during the whole process. Everywhere I look, I get conflicting information. Some say to never repay any zombie debt because it will reset SOL while others say that you will have to pay it off to qualify for a mortgage. I guess I should also mention that these are old CO CC's and not medical bills. Any advice would be greatly appreciated. Thanks a lot!

Re: Settling Old Debt Past SOL

chevyman — Mon, 18 Mar 2013 23:52:05 GMT

That's an iffy one because if u pay it can come back on ur CR

Re: Settling Old Debt Past SOL

Anonymous — Mon, 18 Mar 2013 23:53:46 GMT

If you pay a zombie debt, there is no SOL to restart because there is no debt.

Debt hangs around forever. It is still a debt whether it is sueable or nonreportable.

It is entirely up to your lender on what has to be paid or not. You are obligated to disclose any unpaid debt.

Re: Settling Old Debt Past SOL

Anonymous — Mon, 18 Mar 2013 23:54:25 GMT

@chevyman wrote:
That's an iffy one because if u pay it can come back on ur CR

If it is beyond the reporting time it cannot be put back on your credit report. Paid or not.

Re: Settling Old Debt Past SOL

Anonymous — Mon, 18 Mar 2013 23:55:34 GMT

You can always try GW's once paid.

Re: Settling Old Debt Past SOL

DaBears — Mon, 18 Mar 2013 23:56:39 GMT

@Anonymous wrote:
For all the experts out there, I was wondering if is it worth settling an old debt that is past the SOL in my state and also due to fall off my credit report with DOFD's dating back to 07/2006, 01/2007, 03/2007, and 11/2007? The only reason why I am asking this is because my spouse and I are cleaning up our credit so we can hopefully apply for a mortgage in about 3 to 4 years from now. I really would hate for any zombie debts to all of a sudden pop up during the whole process. Everywhere I look, I get conflicting information. Some say to never repay any zombie debt because it will reset SOL while others say that you will have to pay it off to qualify for a mortgage. I guess I should also mention that these are old CO CC's and not medical bills. Any advice would be greatly appreciated. Thanks a lot!

When applying for a Mortgage the lender will ask you if you have any updaid debt and might make you pay them. Some lenders will pull your whole credit file if applying for a loan of 150K+ or a job of 75K+ they however will not always do it but can if they want.

Re: Settling Old Debt Past SOL

Anonymous — Tue, 19 Mar 2013 04:40:07 GMT

Awesome info everyone! Thank you guys for the answers. Truly the best forum in the world.