lender wants CA/charge off paid hlp

Discussion in 'Credit Talk' started by johns, Aug 15, 2001.

  1. johns

    johns Member

    Hi All:

    Well after living in credit hell for many years we decided to buy a home. Well the lender has come
    back and said we are fully approved (this is a non
    FHA loan), but we must take care of the following
    items (pay them off):

    1. Collection from 10-1995 $164
    2. Collection from 6-1995 $338
    3. Charge off from 2-1995 $2900

    The lender is looking for a statement from each of the above stating that the balance is zero or the acct has been settled prior to closing.

    Since we really want this home and are set to make an offer in the next two days do any of you have any advice about how I should pay these accts off, i.e., is there a better way than simply paying and getting a receipt (perhaps a letter, or a restrictive endorsement).

    As you can see the accts will come off in the next year. If I pay will they still come off or will they stay for seven more years.

  2. sam

    sam Well-Known Member

    speaking from experience, I just paid a $48 collection account, the date of last activity did not change..
  3. bfllover

    bfllover Well-Known Member

    Gosh--since you only have 2 days,even though letters are usually recommended,maybe you are better off just calling the collection agency--ask to talk to a supervisor,and tell them you are willing to pay over the phone to settle this account immediately if she or he first faxes you a letter saying they will delete the account from all three cras.aalong with the receipt that the account is paid in full.What do all you guru's think?since she only has 2 days to work with?
  4. Terry

    Terry Well-Known Member

    Immediately escalate the call to a Supervisor or Manager, as they can do things others cannot. Here is what I would do: I would tell them I came into a little money. I would tell them I want to settle the debts I know I owe. Start with 50%. The collections are so old that they should take whatever you offer.

    That being said, I would tell them I am prepared to settle these accounts today if they would fax something stating the debts were paid. I would push for them to fax something today you get the fax they get the money.....win win situation.

    It depends on the collection agency. Some will leap at the chance to settle the debts.....remember those people work on commission, and probably paid close to minimum wage. Chances are when you discuss settlement.....their attitudes will change.
  5. rogerjones

    rogerjones Active Member

    What state are you located in?

    My experience recently has been there are ways around this in California.

    Have you considered a FHA loan?

  6. Marie

    Marie Well-Known Member

    Get them to remove the tradelines completely. Let them know you know the sol for suing is up and that they'll drop off your file this year anyway.

    there's nothing they can do to collect these. they can't reage them and put them back on your reports or you can sue them... they can't sue you... You have all the leverage

    UNLESS you tell them you're getting a mortgage... I agree.. tell them you have a bit of money and would like to settle out of principle but you're not stupid and aren't going to let your principles hurt your credit score...

    Full removal and you'll pay them today. Get the full removal in writing before you send the money. Then have them fax you a letter w/the fact that they'll remove the tradeline and that it's paid after you pay (so you'll have it for the underwriter)...

    Have the CA send a univeral data form to all 3 CRAS... your money is just a gift to them. I'd also start at 25-50%... but they're so small to get it done quickly you can always pay in full worst case scenario and it's not a big deal :)
  7. johns

    johns Member

    Hi Terry:

    Thanks for your reply.

    You said:

    Does it matter how I pay. Should I use a credit card, Western Union, Cashier's Check.

    What if they say they will fax that the accts are paid, but will not direct the CRA's to delete?

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