Fisrt off im new to the form.I have a question and hope you guys can answer it?I have a charge off from 2005 for $3,000.They sold it and now its up to almost $6,000.We would like to resolve this issue, but dont know how to go about it?The last payment was in june of 2006 and before that the first non payment was in Aug of 2005.My wife sent them $500 at the time and I think it may have been a mistake,since the 7 year period started all over again.Am I correct?So the company that bought the charge off says my last payment was feb 2011,which is BS.So if we pay off the debt will they both show payment paid in full and maybe even drop off?Or should I dispute the first charge off b4 I even try to clear the debt?Or should I just wait out the 7 years.My wife & I want to buy a house next year and dont want this to get in our way.Thanks in advance for any info given.
Welcome to Creditnet. The debt won't drop off your credit reports just because you pay it. What state are you in? Is the debt still within the SOL. Look into that first. Have you validated the debt with the CA yet? Also, the 7 year period doesn't start over again when the DOLA is updated. It's the DOFD that matters, and that should never change.
From what I read the SOL in Calif is 4 years.Next month it will be 6 years since DOFD.We had to get back for the last 5 years on one income while my wife got her RN.So now she is making as much as I do.We really want to buy a house and yes we could pay the $6000 back in 3-4 months if we buckled down,and I know its the right thing to do.Im just wondering what most would do.since its so close to 7 years?
Your best two options are to either see if you can settle the debt for 20% to 30% of the balance due, or alternatively to wait a year for the debt to fall off your credit reports. I do not believe that house prices will increase significantly from this year to the next, and with all the foreclosures still in the pipeline, prices may actually decrease. Therefore, continuing to rent for another year while you "wait the debt out" is likely to save you money--not cost you money. Since the debt is outside of the SOL, it is unlikely that a mortgage company will care about it once it no longer appears on your credit report. Also, paying the debt WILL NOT increase your credit score in the short-term, and may actually bring your score DOWN, at least for a while!
