@trc1962 wrote:Hi. My report has gotten a lot better and my scores are now in FHA range. I have most of the bad stuff off my report and now have only 2 charge offs from 2011/2012 and they are unpaid. One is for $700 and one $1200 and I am afraid to do anything as it will hurt my score. Will these charge offs stop my FHA qualification? I have tried reading the FHA thread above about charge off rules, but it has an error link on it now so no access.
...your collection accounts total is less than $2000 ...afaik all you'll have to do is provide a written explanation to the FHA/loan underwriter for them ...worst case is that the underwiter may not accept your explanation
...paying the CAs will not hurt your score unless you set up a payment plan and then default ...if you pay them off in a lump sum the DOFD won't reset ...FICO does not score paid/unpaid CAs differently
...if you can get a PFD before you pay them off, it will actually help your scores, probably by more than a few points
...that said, the SOL may not have expired so contacting the CAs could result in a judgement if you refuse to pay ...thats an FHA no no
...the best move if you can afford it is for you to offer a PFD on the CAs and get them removed altogether
...whatever you do, don't apply for a mortgage if you are going to engage the CAs ...once they see a mortgage app on your file, you're toast
