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 jaguilera777
Joined: 04 Nov 2009
Posts: 6
2.72 Dollars($)
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 Posted: Wed Nov 04, 2009 1:55 pm Post subject: Reposession- credit reporting |
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Hello,
I had a car voluntarily reposessed in Aug 2006 and currently have been working to improve my credit. I have a score of 680 now and was looking to buy a home. However, BOA said that they cannot because although the car loan was "charged-off" the collection agency is still listing a monthly payment of $540 which is bringing my debt to income ratio above 30% since they have to add that to my current obligations. My question is, can a collection agency AFTER charging a debt still list a monthly payment on my credit report?? I know that it will stay for 7 years, but what about the AMOUNT listed on the monthly payment? Isn't it illegal for them to list it that way? Someone mentioned that they do this illegally to try and prevent you from getting a mortgage and other things.
Any information would be very helpful (I live in TX). |
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jameshogg
Joined: 20 Dec 2005
Posts: 5167
Location: nevada
645.98 Dollars($)
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| Posted: Thu Nov 05, 2009 12:05 am Post subject: |
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Hi jaguilera,
Your car loan was charged off and not forgiven. The collection agency has the rights to collect the dues from you. Thus, they are listing the monthly payment in your credit report. It is not illegal for the collection agency to list the payments. You can try and settle the dues with the collection agency. However, though you settle the dues, the charge off would remain on your credit report for 7 years.
Thanks |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 9761
Location: bloomfield, ct
37.25 Dollars($)
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| Posted: Thu Nov 05, 2009 10:26 am Post subject: |
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bank of america is being ridiculous in adding this $540 to your monthly obligations. you're dealing with someone who hasn't a clue as to how collections accounts work, apparently.
interestingly, though, you had posted earlier that you were contemplating a purchase and wanted to know how it might work out for you. i guess you found that house awfully quickly and the time it took you to get to underwriting had to set a world's record!
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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jaguilera777
Joined: 04 Nov 2009
Posts: 6
2.72 Dollars($)
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| Posted: Thu Nov 05, 2009 11:13 am Post subject: |
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| Well, I had to call BOA to get a pre-qualification letter for a VA Vendee Loan... so that required me to contact them so they can see if they would approve me. I found a BEAUTIFUL home for $89,900 (foreclosed home) that I want to get a loan for... but the guy told me that they have to add the monthly payment to my monthly obligations because it's listed, even though it is a charge-off. This brings my debt to income ratio above what they want. Do you think maybe I should go with someone else? |
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Guest
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| Posted: Thu Nov 05, 2009 11:04 pm Post subject: |
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| Checking out with other lenders can always be a option for you. Speak to some other lenders and check if you can get a loan. |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 9761
Location: bloomfield, ct
37.25 Dollars($)
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| Posted: Mon Nov 09, 2009 3:03 pm Post subject: |
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as i said earlier, the bozo who is adding that monthly payment to your debt load is plain wrong. go elsewhere and find someone who has some sense.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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