Capital one charge off

[aman31]

Whats the best way to handle this account? I'd like to apply for a mortgage within the next few weeks. I'm currently paying $25 a month to capital one until fully paid. Is this currently hurting my score? Will I be require to paid off during the mortgage process anyway? 

[OmarGB9]

Yes, most likely you'd have to pay it off fully or settle anyway. And yes, it is hurting your scores if it's updating monthly.

[aman31]

Should I try to offer to pay off for deletion? 

[OmarGB9]

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@aman31 wrote:

Should I try to offer to pay off for deletion? 

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Of course, but beware that when it's an original creditor (OC), it's extremely difficult to get them to agree to a PFD.

[House2021]

I was under the impression that you had to pay charge offs off for a loan too, but then I applied for a mortgage (FHA) and they didn't require extra to pay off any or count it into the debt a ratio, even a $4400 auto charge off. 

[Remedios]

Capital One will not PFD. That's a practice reserved for accounts placed with CA.

I think you should postpone your plan to apply in a few weeks. You'd want this CO to be paid, then allow some time for your scores to start recovering.

While it's great you're making payments, monthly reporting is keeping your scores supressed.

Ideally you'd pay it off (all COs), then wait about six months. 

If it has to be within next two weeks, you probably want to run any action by LO first. 

[CyberChick]

I settled with Capital One Auto for less than what I owed. I wrote them a letter and they offered lower. I paid it off and am waiting for it to update. I'll let you know how it goes. I'm playing the long game and won't apply for mortage for several more months. You may not have the time, but check with your Loan Officer and see what they say.

Keep us posted.