Posted on: 17th Mar, 2009 08:53 am
I am currently looking for a mortgage loan with a FICO score of 660. My question is: I have a charge-off that the amount is 4600 dollars and is 5 years old. It is still owned by the original creditor. I do not want to pay it because they have items that were retured for warranty and I never recieved them back. I have 2 bank credit cards and other charge accounts as well as one installment account all in perfect standings. Will I be able to get a new home mortgage loan with this charge-off on my credit or will I have to pay it off? If so, what do you recommend? Also I plan to put 5-10 percent down.
curt, modern day underwriters won't stand for outstanding debts (though there may be an "old fashioned" one still out there somewhere. it's my opinion that everyone will ask you to pay that charge off (settlement is okay), but that everything else you mentioned is in your favor.
Curt, most likely with your credit you would want to go FHA as conventional interest rates would be quite higher. Anything over $1000 will be required to be paid through the close of the loan.
