I have two chargeoffs worth about $12,000 that are about 6 years old and way past the SOL. Will I be able to acquire a fair mortgage with these COs on my credit report or will the lender most likely require me to pay these off? My FICO avergae score is around 600 and rising fairly rapidly. I haven't had any negative items on my report for at least 3 years. Maybe I should wait until these COs fall off of my report??? Thanks!
I have an MBNA charge-off for around $6,000 still on my Experian report from 1998. When I got my mortgage last August I was asked to explain it (along with all of my negative information) but I got my mortgage @ 6.5%.
Maybe worth looking into then! Thanks a lot. What was your middle FICO score if you don't mind me asking? Anybody else?
A mortgage lender told me that we would have to resolve any unpaid chargeoffs or collections showing a balance before we could proceed. So you *might* have to do something about it. peace, delilah
A lot of it has to do with the fact they don't want anyone else to be able to sue you and compete with them for a first lien on your property. In my case, I think the fact that this MBNA charge-off is past the SOL was a factor in my lender ignoring it. I did have to pay a tax lien before I was approved. I'll have to search the board for what my scores were... I'll post a link to the thread.
As a mortgage broker that does mainly refi's, I can tell you that there are certain lenders that will make you pay off the charge offs and certain ones wont. Some are score driven and as long as you have no derogs in the last 12 months, the charge offs dont matter. Keep in mind that this is for REFI's. I don't do purchases so I don't really know about those. I DO suppose that the rules apply across the board though.
Here's the thread I started with my scores when I got my mortgage approval: http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&threadid=21873
