First I'd like to say how much I love this board. I've been lurking for a few months and taking everything in. I applied for a mortgage through a broker a few months back and they told me I needed to get the derogs off my account. I have two utilities ($900+ gas and $300+ electric) and an ambulance bill ($350). I wrote the ambulance company and asked them to remove the item, as I've always had medical and if this is mine it would have been paid by such. Never heard back from them but it's still on there. Going to send second letter. My problem is the utilities. The last time I made a payment on them was 5/97. The CA's are listing the dates "placed" and "updated" but neither of those even comes close (1998 and 2001 placed). I want to send validation letters, but don't want to wake a "sleeping dragon". Can they come afer me for the money at this point? I live in PA which I believe has a SOL of four years. Other than these three items, I have a personal loan, car loan, VISA (all through credit union) always paid on time and a MC through Capital One (always paid on time). My Equifax score is 570 - my balances are high. Thanks for any advice you can offer.
Does the mortgage broker want them deleted or paid? In order to get a deletion you need to dispute with the CRA and hope they delete or settle the account either through FRCA violations or paying. If you want the mortgage you run the risk of waking them. Applying for a mortgage lots of times wakes them anyways.
Thanks for the reply. The broker said I should pay them and ask them to be removed in the settlement. But, again, they are over six years old and I don't want to pay if I don't have to. The down payment and closing costs are going to kill me the way it is, so I don't want to have to spend another $1,300+ on top of everything else. But my question is, can they do anything since SOL in PA is four years and it is beyond that since I last dealt with the OC? Thanks again.
Wow, we're in the same boat. I'm also in PA (southeast), applying for a mortgage, don't want to wake a sleeping dragon, and have 2 collection accounts that don't fall off for another yr or 2. First of all, I'm a board newbie, so take my advice for what it's worth. Second, I don't believe in PA, with SOL of 4 yrs, that anyone can come after you. Legally speaking, that dragon slept too long. I'm not sure though, whether your CA account can be sold to another CA and effectively start the clock again. I'm waiting on an answer for that one. It's funny that things come out of the woodwork in your CR once you do apply for a mortgage. Wrong, just plain wrong, I tell ya. You and I need the same thing: to get the mortgage, the debt must be "settled". By that, it doesn't matter to the lender if you pay it off or get it wiped off. But to your CR, paying off something that falls off in a year or 2 anyway makes little sense, because it doesn't raise our FICO, and because we both need that downpayment! Yet, with the spouse and kid wanting a new house, it's a question of how much bravado you feel, and what's most important to you.
Glad to see I'm not the only one in this boat! I think I'll just send the validation letters and see what happens from there. Since the debts are from 1997, I'm hoping that they just say forget it and remove them. They can't come after me, but one of them is NCO and I've read so many scarey things about them which is what really makes me leary. Also, no where on either credit report (Experian and Transunion) does it have a DOLA listed. The earliest dates on either of them is 2000, so they won't fall off until 2007? Is that what they mean by reaging? By the way I'm in Northeast PA!
Once the SOL has past they can't collect unless they sue you and you don't show up. Then they win by default. Other than that they are out of luck. If it gets sold the clock does not restart. The SOL is good for life. Once you past it you're home free. The situation you mentioned sounds like reaging. Need to actually see the report to be sure. It's a bad spot to be in. Ask yourself if the house will go up in value more the amount of the debt. In otherwords, if you wait 2 years and it falls off the house might cost $20k more. WORD of CAUTION: make sure the mortgage will be approved before you send any money to the CA. I've seen people pay off old debts and still not get approved. The way to avoid this is deposit the money in escrow and have it paid at the closing. If you don't get the house the CA doesn't get paid either.
1*I'm not sure though, whether your CA account can be sold to another CA and effectively start the clock again. I'm waiting on an answer for that one 2*It's funny that things come out of the woodwork in your CR once you do apply for a mortgage. Wrong, just plain wrong, I tell ya. ernie_j_c ============ 1*Here's your Ans.Account can be sold but it can't restart the clock. 2*I'ts not just wrong it's a racket! The END ************************* LB 59
