I am trying to get mortgage as a first time homebuyer and the manager of a mortage company told me not to worry about my credit cards charge off's that have been more than 2 years, has anyone heard this before?
No but I think they would worry about any c/o's that are not paid c/o's even after 2 years. -Peace, Dave
Yes I have heard of this IF your Charged off Credit card has a 0 balance on it. If it says that you have a balance then they would ask you to pay it or settle it and show proof of payment.
Agreed. If your credit is clean for 2 years and c/o is paid, then you should be ok. They'll just ask you to write out a letter explaining the situation (laid off, medical, etc.) GT
what if the charge-offs are older than two years and you pay them? If you're credit and payment history is good for at least two years on your current obligations, do lenders want you to wait two more years?
No, my sister just received her mortgage. The agent told her point blank "maam you have 2 unpaid c/o's on your report...you will HAVE to have those marked paid before you can even be considered". So since she needed immediate action, I called the creditors, and told them I would pay them in full (both were small and more than 2 years old) if they send me a letter guaranteeing that the items would immediately reflect "paid" status via her credit reports to all 3, upon payment in full. We received signed faxes stating that, we paid via WesternUnion, and then received faxes showing the items reported as paid (and immediately reported to the CRA's)...sent that fax to the agent, and she was approved that instant. Good Luck. -Peace, Dave
Thanks for the info. I'm in the process of paying off charge-offs now. I have two of them that I successfully disputed off of one credit bureau. The wife had a $1107 c/o with Providian deleted by TU. I have a First Premier c/o changed to Paid/Charge-Off. The other two bureaus show a balance on this of $440.00. Looking to settle this one for $132.00.
