Slightly confused on what to do

[creditisbetter2]

Hello All,

I just purchased a home on November 1st and I have had two old accounts report and one appears to be valid and the amount is for $51.00.  The account is from 2008 and I am wondering if I should just go ahead and pay it and ask them to update my status from unpaid to paid or just say to heck with it since I have the home loan now?  I hadn't had any issues with creditors for 4 years and all of a sudden now that I have a home loan, people want to resurrect old debt.  The money is not an issue but what I have a problem with is that it will continue to report as a negative account for the next 4 years anyway so why pay it?

[cdtotten]

When you start applying for home loans, junk debt collectors pop out of the woodwork very frequently. The reason being is that they think since you are trying to get a home, you will be willing to pay off your old debts so that they don't cause issues with underwriting. If they are legitmate debts that have popped up that you owe, then you can negotiate a PFD, which would get it off your report and satisfy the debt.

[Booner72]

I am still working on my credit reports to get them clean even though I bought a house in September.  Good thing, as I decided to get a car and got 5.4% financing!

I'll never give up trying to remove the bad and the ugly, and religiously ensuring I never get another derog on my reports ever ever ever again.  I worked too hard.

[creditisbetter2]

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@cdtotten wrote:

When you start applying for home loans, junk debt collectors pop out of the woodwork very frequently. The reason being is that they think since you are trying to get a home, you will be willing to pay off your old debts so that they don't cause issues with underwriting. If they are legitmate debts that have popped up that you owe, then you can negotiate a PFD, which would get it off your report and satisfy the debt.

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Somehow I was under the impression that there was no way it can come off of your report.  If I pay it and send that letter requesting them to remove it then I don't mind paying it.  It's a legitimate debt but I haven't heard anything about it in over 3 years so I completely forgot about it.  I would never intentionally let a 50 dollar debt hit my report.  Thanks for the info.

[creditisbetter2]

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@Booner72 wrote:

I am still working on my credit reports to get them clean even though I bought a house in September.  Good thing, as I decided to get a car and got 5.4% financing!

I'll never give up trying to remove the bad and the ugly, and religiously ensuring I never get another derog on my reports ever ever ever again.  I worked too hard.

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I agree with you booner, I am very religious about keeping my credit clean.  Before this incident, I hadn't had any negatives on my report for three years which is why we were able to get the house as seamlessly as we were.  But now that we've cleaned up our credit, here comes all of the junk debtors.  Oh well, I'll stay on top of it.  I can't allow my credit to go under at this point.

[cdtotten]

Send them a letter first (with no payment) indicating that you are willing to pay the debt, in full, if they agree to remove the tradeline from all credit bureaus. If they respond, in writing, that they are willing to do so. Then keep that letter, send them the payment with a letter indicating that in agreement with the terms agreed upon in a previous communication (include copy of letter), you have attached payment in return for the account being deleted from reporting.

If time passes and they don't remove the reporting, you can contact them or contact the CRAs with a copy of their letter and payment.

[creditisbetter2]

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@cdtotten wrote:

Send them a letter first (with no payment) indicating that you are willing to pay the debt, in full, if they agree to remove the tradeline from all credit bureaus. If they respond, in writing, that they are willing to do so. Then keep that letter, send them the payment with a letter indicating that in agreement with the terms agreed upon in a previous communication (include copy of letter), you have attached payment in return for the account being deleted from reporting.

If time passes and they don't remove the reporting, you can contact them or contact the CRAs with a copy of their letter and payment.

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I did see a sample PFD letter online but what I am wondering is if I send that letter, will it restart the time frame for it falling off?  That's my apprehension, I don't want to communicate with this company only to find out that they've restarted the date from the day i've reached out to them.  There's nothing that says they have to accept the PFD letter right?

[MarineVietVet]

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@creditisbetter2 wrote:

 

I did see a sample PFD letter online but what I am wondering is if I send that letter, will it restart the time frame for it falling off?  That's my apprehension, I don't want to communicate with this company only to find out that they've restarted the date from the day i've reached out to them.  There's nothing that says they have to accept the PFD letter right?

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No action by you or anyone else can legally change the CRTP (Credit Reporting Time Period).

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[creditisbetter2]

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@MarineVietVet wrote:

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@creditisbetter2 wrote:

 

I did see a sample PFD letter online but what I am wondering is if I send that letter, will it restart the time frame for it falling off?  That's my apprehension, I don't want to communicate with this company only to find out that they've restarted the date from the day i've reached out to them.  There's nothing that says they have to accept the PFD letter right?

---

No action by you or anyone else can legally change the CRTP (Credit Reporting Time Period).

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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Here's an update and this is what I need help on.  They in fact changed the reporting time period to be from 2011 when this debt is supposedly from 2008.  I need that to be corrected or removed, how can that be done because the way they are reporting it, makes it seem like a brand new debt although it says it's supposed to fall off my report in 2015.

[Booner72]

Even if a CA updates the collection every month, it shouldn't affect your score.  FICO goes by Date of First Deliqnency (DOFD) not Date Reported.  It should still fall off  in 2015.  If you aren't sure if it will, call the CRA and ask them what date they have that account falling off.

This is often what happens w/ disputes.  They get even worse.  Sometimes.