Im working on my credit in hopes of being able to qualify for a new home at the end of the year.
I have a chargeoff with Homedepot project loan in the amount of 12,682 that has been sold to Midland.
Of course, I dont have 12,682 to pay this off. What would be my options? Should I save up and negotiate a settlement for 40-50%? The account was was opened in september 2014 and last updated 4/1/2017
Has anyone attempted and been sucessful at getting the chargeoff reversed and making payments to the original creditor that would be reported on credit report?
Do i have any other options that im not aware of? Any help would be greatly appreciated!
What is the statue of limitations in your state?
If the creditor has sold the debt to a debt collector, you no longer have a debt with the original creditor, and therefore they can no longer take any payments on the debt. You can no longer offer the creditor any payments, a PFD, or offer a settlement for less.
The original creditor is required to update the reported balance to $0, but the reported CO will remain.
You can send good will requests to the original creditor, but having taken a loss on the debt with no more ability to recoup any part of that loss does not normally foster good will.
As an aside, are you sure that the debt was sold to the debt collector, and that the debt collector was not simply assigned collection authority to attempt collection on behalf of the original creditor?
Now that youre asking, im not too sure.
Its not listed under my collection. It is still listed under my accounts but it says closed/chargeoff.
The original creditor and Midland is listed under the name.
Account name: MIDLAND ST BK/GRNSKY/THD
Account type: unsecured
Date opened: 9/26/2014
Status: Account charged off. 12,682 written off. 12,682 past due as of JAN 2019.
Status updated: 01/31/2019
Balance updadted: 01/31/2019
on record until: Oct 2023
It has been reportin "CO" monthly on the payment history legend.
Then Midland St Bank is apparently a bank with which you secured the loan, and not the well-known Midland debt collection agency?
If they are the original creditor, they are not reporting as a debt collector.
The posting shows an expected exclusion date of 10/2023, which implies that the date of first delinquency was 10/2016.
That means the debt is almost 2 1/2 years delinquent.
It is common for creditors to either refer or sell delinquent debt after a charge-off. Thus, you could see the additon of a collection.
Are you willing to make a pay for deletion offer for less than the full amount in order to get the derogs or the entire account removed?
If so, what percentage of the debt can you afford to offer?