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Credit Charge-off - What is it and how to remove it?

When you're unable to pay off a debt, the creditor may issue a credit charge off. A charge off doesn't mean that the debt is cancelled or forgiven. It's not that you no longer owe the debt. Credit charge off implies that the unpaid debt will be reported as the creditor's loss when he uses accounting methods for tax purposes.

The creditor may feel that he cannot collect the debt from you; he may write off the account as a bad debt. But he doesn't lose the right to collect the debt. And, even if the creditor does not try to collect an unsecured debt (like credit card, personal loan, etc), he may sell it off to a collection agency (CA), which will then set off to collect the debt.

How to remove charge off from credit report

Usually credit charge off occurs when payments aren't made for more than 6 months. And, it does have a negative impact on your credit report as it stays on the report for 7 years and 180 days from the date of first non-payment of debt. So, what you need to do is, negotiate with the collection agency and try to remove the charge-off from your credit report.

If the creditor has charged off your loan recently, then request him to pull back the debt from the collection agency. Explain that you wish to deal with the creditor directly. Once the debt is pulled back, you can negotiate with creditor to settle the debt for as much as you can pay. You should also negotiate a pay for delete agreement such that even though you don't pay mortgage balance in full, the lender would communicate with the bureaus and have all information on the account removed from your report. If the creditor doesn't want a pay for delete agreement, then request him to update your account status as "Paid charge off".

However if you try to settle the debt by making a partial payment, then the creditor may report it as "Settled Charge off". A "Paid" or "Settled" charge off on a mortgage debt helps to remove the lien from the house title.

SOL and credit charge off

As long as the SOL (Statute of Limitations) period exists, the creditor/collection agency can file a lawsuit against you and try to retrieve the unpaid debt, even after charge off. But after the SOL period (4 to 6 years, varies from state to state) expires, there'll be no lawsuit against you but the creditor or collection agency still has the right to collect from you. However, if debtors make a written promise to pay off the debt or make partial payment after the SOL expires, then in many states, the SOL starts over again.

If you have a charge off on your credit report and wish to get a mortgage, the lender would expect you to pay it off and then go for the mortgage. This is because a mortgage charge off implies there is still a lien existing against the title and the lien can only be removed once it is paid off.

Can I get some information on Charge Offs?

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What does it mean when a loan company charges off the amount on your credit but keeps the debt in house and uses a third party company to collect the debt. Is that not just as bad. And after the debt is paid is it considered a charged off paid account. So the creditor get the tax advantage and gets to keep the money you pay in?

Like | Dislike | Share | Posted: Wed, 01/08/2014 - 18:27 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I SAW IN THIS COMPANY HAD ME AS A CHARGE OFF FEW YEARS AND NOW THEY SENT LETTER FROM SHERIFF FOR GARNISHMENT CAN THEY STILL COLLECT? :cry:

Like | Dislike | Share | Posted: Thu, 06/01/2006 - 09:46 | Post subject:

cagebird5's picture
cagebird5 | Joined: March 25, 2010 06:10 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

When you call up your credit card company, and ask them to take less than you owe what happens is they charge off the rest. It does go against your credit. Even though they have agreed to a lesser amount the rest is considered a write off, and they will report it to the credit bureau.

Good luck

Like | Dislike | Share | Posted: Mon, 03/29/2010 - 18:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i had a voluntary repo. about 15 years ago haven't been contacted in about 8 years, what is the statue of limitation on this?

Like | Dislike | Share | Posted: Mon, 02/06/2012 - 10:31 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If a lender is willing to negotiate your debt down on foreclosed property to reflect paid in full, is this what the borrower should do? It has been 2.5 yrs since the first non payment and the Statute of Limitations in Texas is 4 yrs I think. Should the borrower pay an 80% reduction to the debt or just wait till the Statute of Limitations to run out and drop of the credit report in a yr and a half? If this is an accurate account of how all this works?

Like | Dislike | Share | Posted: Sun, 05/22/2011 - 07:25 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

wow...was i asleep when i wrote my last comments? they make as much sense as a lot of the others, i suppose, but not to me. i was trying to suggest he take his "cancellation" and provide it to the credit agencies that are reporting the charge-off, as well as to the creditor that's being reported.

i don't think that message seeped through.

Like | Dislike | Share | Posted: Fri, 12/04/2009 - 14:37

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Our [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] is now in collections. Other than the initial communication that told of fees that equalled half the actual debt, the CA will not put anything in writing for us. Do we have any rights to demand information in writing? It feels like we could be paying into a bottomless pit. At one point they said, "Make an offer." But I don't trust what I they're not willing to put in writing. Your thoughts?

Like | Dislike | Share | Posted: Wed, 11/09/2011 - 17:27 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Myrna,

You will be able to file bankruptcy and include the second mortgage which is in collections and get it discharged.

Like | Dislike | Share | Posted: Sun, 08/22/2010 - 22:30

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Angel,

All your creditors have the rights to report to the credit bureaus. A charge off will be considered as a negative mark on your credit report. If you pay off the dues as per a payment plan, the creditor will report it as paid as settled.

Thanks

Like | Dislike | Share | Posted: Wed, 10/27/2010 - 00:18

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My lending company said that my account has been charged. I am now able to make payments but how do I find out if the account was given to a 3rd party or collection agency? And if someone else did assume the loan can I still pay and avoid repossession?

Like | Dislike | Share | Posted: Tue, 09/15/2009 - 06:41 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I just had my credit pulled for a mortgage loan, with xpn i could get approved but efx and tu are alot lower. I have a charge off for a credit card it will be paid off in a week. I wanna get it removed to boost my credit score is it possible? Or at least have it say paid will that boost my score? :evil:

Like | Dislike | Share | Posted: Fri, 03/26/2010 - 09:18 | Post subject:

banker0679's picture
banker0679 | Joined: November 15, 2007 10:05 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

it is possible
make sure you negotiate that with them by doing a pay for deletion

if you pay it and they just update it...then your score can drop even lower AND it may appear on XPN

Speak to the lender ot make sure it's absolutely necessary to pay that collection

Like | Dislike | Share | Posted: Fri, 03/26/2010 - 09:29

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Alaska,

As the card is in your name, the negative information will remain mentioned in your credit report. You will have to make sure that the other person pays off the debt so that positive information gets reported in your credit report.

Thanks

Like | Dislike | Share | Posted: Sun, 11/17/2013 - 21:25

Cliff's picture
Cliff | Joined: October 4, 2005 08:44 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Lawson,

I also wanted to add that if your chargeoffs are recent then I would say yes to paying them off. But if they are 2 years older or more, I would not advise paying them off. If you are attempting to get a mortgage then sub-prime lenders would not consider these chargeoffs. If however you are wanting to get a conventional loan, VA loan then you would have to pay off the collection accounts. They will not allow you to have any collections, part of their guidlines.
I would suggest that you get onto a credit monitoring program. These are a minimal cost and it allows you to monitor your credit as often as you like. It also let's you know when changes are made to your credit. The 2 that I like are from myfico.com or privacy guard.

Good Luck to you

Like | Dislike | Share | Posted: Wed, 11/30/2005 - 07:25

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

check out the federal trade commission's website at ftc.gov. there, you'll find copious information on your rights, the responsibilities of both creditors and credit reporting agencies, and methods by which you can correct erroneous information.

it sure does seem like you've been long since past time for this to be eliminated.

Like | Dislike | Share | Posted: Tue, 01/26/2010 - 07:22

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you Mr. Akerley, it does appear that they are being unfair. I will continue my quest for "good faith".

Like | Dislike | Share | Posted: Sun, 02/21/2010 - 05:19 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a property lien due to a defaulted loan. There has been no other activity by the lien holder for ten yrs. Can I have the lien removed? Mississippi

Like | Dislike | Share | Posted: Wed, 08/24/2011 - 11:19 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a credit card that was in my name but used by someone else As a secondary to the card. I have moved around a lot with the military and have had several addresses. I have not had any contact with any credit card collection agencies. I just found out that the person who I got the card for has not made any payments for 4 years. They we're suppose to make the payments. I am not going to pay it due to being not my debt. I live in alaska. What are the rules with getting this removed from my credit report

Like | Dislike | Share | Posted: Sat, 11/16/2013 - 20:18 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Guest,

A charge off on your credit report may affect your chances in purchasing a loan. The lender may ask you to pay the charged off account first and then apply for a loan.

Like | Dislike | Share | Posted: Wed, 08/04/2010 - 00:10

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Like | Dislike | Share | Posted: Sat, 11/16/2013 - 20:18

sunnyca2009's picture
sunnyca2009 | Joined: August 4, 2009 07:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

You will need to wait 3 - 4 years

Like | Dislike | Share | Posted: Sun, 09/20/2009 - 16:12

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My debt has been forgiven/ and or Cancelled; Can a creditor report it as still owing to the credit bureau, i.e. a"Charge/ Off debt"? Thank You

Like | Dislike | Share | Posted: Thu, 12/03/2009 - 02:54 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Trevor!

Welcome to forums!

If the lender is forgiving the deficient balance, then it is good for you. However, you will be liable for paying taxes for the deficient balance that has been forgiven. But due to the Mortgage Debt Relief Act, you may not have to pay the taxes for the forgiven debt.

However, like any negative item, it will be mentioned in your credit report for the next 7 years.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 05/23/2011 - 00:52

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi all,

Thanks for the all those informations and suggestions. I have got a fair idea now.

Thanks again,

Like | Dislike | Share | Posted: Thu, 11/24/2005 - 14:41

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

I want to add some more which may help.

If you want to remove these charge-offs from your credit then you can do either you should pay your debts off or you should [url=http://www.mortgagefit.com/bankruptcy.html]declare bankruptcy[/url].

If the debts are out your control then bankruptcy can be a good option. If you wish to pay off the debt don't forget to negotiate with the collection agency to get the charge-off removed from your credit report.

Thanks,
hogg

Like | Dislike | Share | Posted: Thu, 11/24/2005 - 14:21

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The bank just has made my 2nd mortgage charge off. Since now the 2nd loan is an unsecured debt, Can I filed a BK7 and get rid of the 2nd with my other credit card debts and keep my house?

Like | Dislike | Share | Posted: Sun, 07/04/2010 - 13:01 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Lawson,

Usually you will find the credit card companies using these charge offs. Your debt is charged off when there is a long delay in your payments and the company writes the debt off in their record as uncollectible and stop devoting time and lawyer's fee in collecting it.

It is considered as serious negative mark in your credit report and is almost as bad as bankruptcy.

Even if the company doesn't try to collect the debt further from you but you still owe the money to the company and can be collected if it is sold to an attorney or collection agency.

Hope this information will be useful.

God bless you.

For MortgageFit,
Samantha

Like | Dislike | Share | Posted: Thu, 11/24/2005 - 13:19

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My debt has been forgiven/ and or Cancelled; Can a creditor report it still owing to the credit bureau, i.e. a "Charge/Off "? Thank You

Like | Dislike | Share | Posted: Thu, 12/03/2009 - 03:03 | Post subject:

blue's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Lawson,

Your debt is charged off when the creditor write off the account as a bad debt, but this does not indicate that you are no longer responsible for the debt.

Regards,
Blue

Like | Dislike | Share | Posted: Thu, 11/24/2005 - 12:55

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i agree with you...have you ever tried to marry the documentation you got for the medical cancellation and passed it along to the bank? i don't get what you're describing, but it occurs to me that if the two of them see hwat've you've done with house, it'd serve you better.

Like | Dislike | Share | Posted: Thu, 12/03/2009 - 20:52

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have never missed a payment. I took a second mortgage for $100,000 to open a business with bad advice from my former accountant. Due to the financial crash I was unable to pay off the complete amount on the second. I negotiated with the bank to settle the $98,000 owed for $45,000 due to loss of employment and my business is struggling. Will I have to pay taxes on the 1099 and can I get the ding on my credit removed since I settled the second mortgage with bank? My credit score is 702. I want to emphasize I have never missed a house payment. Fortunatley I just got employed and my credit is important in the line of work I am in. -Do I qualify Hardship to avoid taxes on the 1099? I chose this route because bankruptsy was not an option due to the nature of my employment.

Like | Dislike | Share | Posted: Sat, 09/11/2010 - 03:03 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

In 2001 my boyfriend and I had our vehicle repossessed. He filed bankruptcy and I didn't now its 2009 and I wanted to purchase a home. I pulled my credit report and noticed the vehicle was stated as a charge off/ bad debit. Now it has been eight years since am I still responsible to pay off the loan or does the SOL come into play and I can write a letter to the the three credit breaus to have it removed?

Like | Dislike | Share | Posted: Wed, 12/30/2009 - 08:10 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a consumer credit card which has been charged off. I was originally offered to make installments to pay off in 90 days during the negotion I was not allowed to have 30 days between each payment at $2200.00 each payment. So I couldn't make the deal. Now it has been charged off and assigned to a collection agency. I have attempted to call them they said they will look at it and ask for a new contact number, which is just a way of getting more contact info. What can I do to settle this debt?

Like | Dislike | Share | Posted: Thu, 09/08/2011 - 10:46 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

After being a bit behind in my mortgAge payments . I had made payment arrangements with my mortgage company. I was following my agreement and had been making the payments without fail on time and the agreed upon amount. I then get a notice from another mortgage company telling me that they had purchased the loan and that they were going to
Begin foreclosure process. I attempted to
Work with them and continued making my payments. It has been Almost a year . I've never received anymore regarding the foreclosure but when I received a late tax notice the company had failed to pay my taxes on the house. I contacted the mortgage company who said that all
My payments were going to the principal and that I was considered a
Charge off. Is this legal and what can I do at this point.

Like | Dislike | Share | Posted: Wed, 05/18/2011 - 10:52 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi!

Welcome to forums!

To Hiswife,

You can contact your creditor and ask them to inform you as to who the collection agency is. Once the lender lets you know about it, you will have to contact them and pay off the dues to them. You will have to ask the creditor to take back the account from the collections and then negotiate about assumption.

To chrystine,

The collection agency can sue you for the debts. You can negotiate with the collection agency so that they can give you a payment plan to pay off the dues.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 09/15/2009 - 23:05

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi bayou,

What you are saying is possible. But it will be completely the discretion of the creditor whether or not he will consider your request and negotiate with you to remove the negative item from your credit report or report it in good standing.

Thanks

Like | Dislike | Share | Posted: Tue, 04/09/2013 - 20:20

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

SINCE A CREDITOR HAS AN ACCOUNT CHARGED OFF AS A LOSS, IS IT PERMITTABLE FOR THE ACCOUNT TO BE NEGOTIATED AND MAYBE COME TO AN AGREEABLE AMOUNT WITH THE CREDITOR AND THE CREDITOR REMOVESOR HAVE THE CREDIT BUREAUS REMOVE THE ACCOUNT OR SHOW IT IS IN GOOD STANDING AND PAID OFF?

Like | Dislike | Share | Posted: Mon, 04/08/2013 - 21:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I had a repo in 2002 from americredit on a car that only had a balance of $2000 left on it. They have sold the account 5 times back and forth to other companies and back to them!! On my credit report it shows a charge off in 2002 for $8000. ? Then it shows no payment with the 5 other companies who have held this debt. Now the debt is showing at $14000.00 . On August 2009 it has Americredit saying charge off again , But this time with the $14000.00. Is this Legal? And when will this come off my credit? Because they keep renewing it every couple of months.

Like | Dislike | Share | Posted: Mon, 09/21/2009 - 21:49 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you walkaway from the property, it will be foreclosed. After a foreclosure, you need to wait for 3-4 years in order to qualify for a loan. So, it won't be a good option to walkaway from the property.

Like | Dislike | Share | Posted: Mon, 01/23/2012 - 02:21

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi, here is an update to the "inaccurate" charge off which was applied to our credit report. It appears that the bank is in violation of the fair and accurate credit reporting act. I am currently researching this and the bank finally returned my call but I was not home at the time. I have the address of Thrift Supervision in Washington, DC and this information was given to me by the Attorney General. I know that I am probably not the first person that this bank has not been honest with, but I am hoping that I will be the last. The bank also failed to notify me of this adverse action to be applied to my credit report and I understand that there is a set fine for this lack of notification. It does appear that the corporate giants are trying to take advantage of the consumers and we need to stand up for our rights. I am finding all this information through research on the web and will not stop until I am proven wrong or until the bank corrects their mistake. My question to you is this... Is it possible when requested, to get a copy of a bank's short sale policies? I have requested that among other things such as the actual disclosure which states how they came up with the amount owed. It still blows my mind that they agreed to the short sale, and the note for $38,000 which specifically states it is to cover the mortgage for the property. Then they do not even mention that I have been paying and have that note with them on my credit report. I believe that they have violated the fair and accurate credit reporting act in many areas. I shall keep you posted, even if I am proven wrong.

Like | Dislike | Share | Posted: Tue, 03/02/2010 - 16:53 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi slimmy!

Welcome to forums!

If your debt has been charged off and assigned to a collection agency, then you will have to deal with the collection agency in order to get rid of the debts. However, if your account is still with the creditor, then you should contact the creditor and set up a re-payment plan with him.

You will be able to make the payments on a loan even though you've settled another debt.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 08/11/2011 - 22:26

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I had a large credit card debt that went to a collection agency and listed as a charge off by the original creditor. I worked diligently with that agency to make a monthly payment schedule I could afford.
After about two years of payments, the agency offered me a settlement. I accepted and reported the write off as income on my taxes per law.

My question is, is this debt now considered settled? After reading these boards I worry the agency may have the right to come back on me for the rest of the payment. That would stink.
Thanks for your time and help

Like | Dislike | Share | Posted: Sun, 09/19/2010 - 07:07 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if it was charged off, then it can certainly be reported as such. what type of debt was this, roy? and please explain the forgiven aspect of it...i don't quite get the concept. as for a cancelled debt - i'd think that means the creditor denies now that it ever existed?

Like | Dislike | Share | Posted: Thu, 12/03/2009 - 07:54

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

that's best asked of the court system in arizona...either the court in which the judgment was obtained, or with the state attorney general's office.

on here, you'll get much speculation, and perhaps a real answer, but for safety's sake, it's best you get a true legal opinion in this matter (or definitive rule of law).

Like | Dislike | Share | Posted: Sat, 09/19/2009 - 09:10

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

you're so welcome sabrina - keep us posted please

Like | Dislike | Share | Posted: Sun, 02/21/2010 - 20:20

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Mr. Akerley I am back! The bank is aware that they have violated the Fair and Accurate Reporting Act #1681 and they are blowing it off due to the "changes" due to short sales. That said, another interesting little tidbit for your short sale persons who are willing to negociate with the bank and sign an unsecured note. This bank which we are paying 2/3's back with a 20 year note has been very deceitful. They will not be reporting this note to the CRS's. My research has indicated that "collection" agencies will not give you credit when you are paying them back. I am wondering how this letter of approval and this promissory note which we signed in good faith has now become "collection". It makes sense, but why didn't the bank let us know what they would be doing? I thought we were negotiating in good faith for the repayment of this loan, and the bank is refusing to give us credit for doing the right thing in paying them back. Doesn't it seem that if we signed a promissory note, (with no mention of collection on it), that the bank would have to treat is as an unsecured note? There is nothing that would have alerted me to this banking behavior when we signed the note as I have worked in the banking industry and am familiar with unsecured notes. It is still blowing my mind that if we had signed a promissory note for the full amount owed with interest, the bank would still have given us ZERO credit for paying them back! Please help if you have any remedies. At this point in time I regret signing the note and my advice to anyone involved in negotiations during a short sale is to be extremely careful because the banks are not being honest and ethical. If you have any information or web sites involving short sales and unsecured notes, please forward them to me. I have reviewed my short sale documents and the only thing that mentions collections is on the letter of approval when the person who signed put their title as "Collections". I had no idea that we would be in collections because we were signing a note out of good faith and the desire to pay the lender back. Thank you again!

Like | Dislike | Share | Posted: Thu, 04/01/2010 - 06:57 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

That is CRA's not CRS's!

Like | Dislike | Share | Posted: Thu, 04/01/2010 - 07:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a second mortgage charge-off that have been on my credit report since 2001, on one of my old credit reports it stated that it was to be removed by 5/2008. in which it was and now its back as 0f 7/2010 for 7 more years. can they do this after the first seven years and how. what leverage do they have now.

Like | Dislike | Share | Posted: Mon, 11/15/2010 - 09:18 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what was the date of the charge off as reported bridgit?

Like | Dislike | Share | Posted: Wed, 12/30/2009 - 10:34

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

cagebird, what we are speaking about here is already a charged off account. what will occur is that the creditor will reflect that the account was "settled" at less than 100%. if, as eric described above, the creditor is willing to a deletion, that means that the whole ugly incident will disappear completely.

Like | Dislike | Share | Posted: Tue, 03/30/2010 - 08:38

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