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Question regarding charge-off

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New Member

Question regarding charge-off

So, I have a charged off account for $3500 on all three reports, that after a little digging, I've figured out that its for a rainbow vacuum (ugh) that my now ex-wife convinced me to get because we'd get these trips and she'd do all the work to make sure we didn't have to pay for it. I'm not going to broach the subject as to whether or not its on her report, because I'm certain she signed on the contract too... we won't go into the dynamics of that relationship.

 

Anyways, we just passed the 6 year SOL for the state I live in, and I'm looking to potentially qualify with my new wife for a mortgage, hopefully within the next 6 months to a year. Any suggestions on how I can handle this? I don't want it to hinder the mortgage process, but I don't necessarliy have the extra $3500 laying around to pay the whole thing off. And its not in collections. Its just sitting as a closed, charged off account on my report.

Message 1 of 12
11 REPLIES 11
Senior Contributor

Re: Question regarding charge-off

Who is the collection agency? Something has to be done before applying for a mortgage. Being that old they may settle for a pretty good affordable amount since you passed the SOL.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences from rebuild to recovery after BK DC. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 2 of 12
New Member

Re: Question regarding charge-off

First Credit Corporation. Looks like the last payment date was 8/20/2013... so the SOL literally just passed

Message 3 of 12
Senior Contributor

Re: Question regarding charge-off

Well the barganing power is on your side now since they cant sue you. Call them up and go low to settle this account so it doesnt affect your mortgage application when the time comes.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences from rebuild to recovery after BK DC. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 4 of 12
New Member

Re: Question regarding charge-off

Any suggestions as how I should approach them? I'd like to avoid restarting the time on my credit report if at all possible. I'm assuming something along the lines of a pay for delete? Not admitting responsiblity, but paying to have it settled and removed. Sorry for all of the questions, just the first time I've dealt with something like this

Message 5 of 12
Senior Contributor

Re: Question regarding charge-off

Settling or paying in full a collection account doesnt reset the clock. The DoFD is the date when fall off begins or for a better term. They cant sue you. Yes there will be a hit once taken care of. Thats only due to updating the account. You want a house in the near future. Call them and say I want  to offer say 30% of the balance since its past the SOL. I would like to buy a home very soon and would you be so kind to delete this from my credit report if we come to an agreement. Be nice. Really nice like kissing their.................. You want a house. Got to play the lets make a deal game. Dont be threatning like well since you cant sue me now you have to take my offer or you wont get paid. Aviod that talk, Good Luck!





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences from rebuild to recovery after BK DC. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 6 of 12
New Member

Re: Question regarding charge-off

Thanks!

Message 7 of 12
Established Member

Re: Question regarding charge-off

Just a thought here for  negotiation purposes .... if it were me I would not mention the mortgage shopping .... it seems like that would be  leverage for them to use for their side of the negotiation ...!!!???

Message 8 of 12
Senior Contributor

Re: Question regarding charge-off


@Jazzcat wrote:

Just a thought here for  negotiation purposes .... if it were me I would not mention the mortgage shopping .... it seems like that would be  leverage for them to use for their side of the negotiation ...!!!???


Good advise. Dont want them to know you got cash.Smiley Wink





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences from rebuild to recovery after BK DC. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 9 of 12
New Member

Re: Question regarding charge-off

Noted! I will not mention that lol 

Message 10 of 12
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