Posted: 11/6/2007 2:48:35 AM EDT
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I have a charge off (long story, stolen ID) that wasn't mine but they wouldn't remove it and I refused to pay it so it is on my credit report from 04. Everything else is current. 2 mortgages, 3 paid off cars etc.... so good history. My average score is 748 which is pretty good. Will the charge off still hurt me? We are thinking about buying another investment property soon. |
WWW.Creditboards.com Arfcom for credit. Go over there and read for a week or two. Then ask for advise on how to get it removed. If it was not legit It should be fairly easy. If they did not remove it it is cause you did not ask the right way. ( Attorney general complaints, Better buisness buerau complaints, Letters of intent to sue under the Fair credit reporting act......... Etc etc etc...........) |
Currently in the process with that. But we will probably buy before that process is finished. (Those fuckers are obstinate.  ) From what I understand I would get the same rate with a 780 as a 750. But will the charge off hurt me?
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"Everything else is current. 2 mortgages, 3 paid off cars etc" Sounds like you pay on time everywhere else...... that said it might hurt you a point or 2, Or you could get away with explaining what is going on, showing them the copies of the Certified Return Reciept Requested Letters you have sent to the Original Creditor, The collection agency and TransEquiUnion ( you are sending EVERYTHING CMRRR right?). And the lender may look the other way. |
Don't bother with the note, It does more harm then good. Explain it with your loan agent. Besides , what good is a note when you can take them to court and get $1000 per violation of the FCRA? Those violations , they add up fast. 
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Anything over 700 is above average so I would not worry about it at all. If I saw that score I would not even look at the report any further. |
what is the amount of the charge off? ETA: That's right out of the fnma guidlines Also, I didnt read your whole post. anything more than $1000 must be paid for an investement property |
With all the stupid fees and crap a little over $4000. |
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I may be wrong here, so don't flame me, but a guy at work said he bought that freecreditreport.com thing, and contested all his points. Which in turn sends a request for verification to the complainant. The ones that don't reply within 30 days get removed. IDK if that is something you are interested in, but if you feel you got the shaft on the deal overall, it may be an option. Just my .02. |
) so can someone explain what a charge off is to me?
In the process of that. But some of the collection outfits are a shade from being illegal. |
When an account goes 180 days overdue the creditor must move that account from their accounts recievable to non recoverable debt. They usually will then sell that debt to collection agencies for pennies on the dollar. |
Gotcha. Makes sense. |
Actually if you want to contest stuff , You are better buying your credit reports from the big 3 or Myfico. If you buy them Credit reporting agencies have 30 days to get verification. If you use the free credit report from https://www.annualcreditreport.com/cra/index.jsp ( the only site you can get a true no strings attached credit report for free from BTW) The credit Reporting agencies have 45 days to get verification. |
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I am a credit analyst. Mostly commercial lending but I did consumer work for several years. Don't pay it if you don't owe them. 748 is good. Depending on where you bank it may or may not have a slight effect on the interest rate offered. I've worked for a giant bank and also for small banks. A giant bank will put your credit score into a calculation (along with other things like debt burden ratio, length of employment, residence, etc.) and the computer will spit out a non-negotiable rate. A hometown banker will actually read your report, and if you have one hit on an otherwise excellent history he will probably know it's bogus without you even telling him and ignore it. He may ask you about it mainly just to make sure that you know about it and aren't getting blindsided. I would still work to get it taken off by the credit bureau though. You wouldn't want it to bite you in the ass next year if a great career opportunity came your way. |
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A bit off topic.............. I ran my free report and show 20+ "open" accounts in good standing (zero bad, btw), and I actually only have about 4 open accounts that any money is owed on (mortgage, and a few hundred in each of 3 box store accounts). Do these "open" (which are actually paid off loans, re-sold mortgage,etc) hurt my rating or are they seen as no effect? If they do hurt my score, how would I go about getting them off the report as most are anywhere from 3-10 years old. |
Good q. - I also have several accounts from the mid-90s that are technically still open (ie "Bon Ton" department store where I bought a suit for a funeral once & got a discount for opening the account). Do those open but unused accounts help or hurt the credit score? |
What he said...And most companies don't archive past the statute of limitations. (2 years for civil claims in OK) If they don't remove it, demand DOCUMENTATION of the debt, they will try to get by with VERIFICATION which is nothing more than a letter from the creditor confirming date, amount, and account number. Most people settle with that and just take it up the arse. You are entitled to proof of DOCUMENTATION, that means that you demand that the alleged creditor show the ORIGINAL CONTRACT WITH YOUR VALIDATED SIGNATURE (not a forgery of your signature). Most lenders will give-up and let the matter go rather than have to assign a person to search their archived files and produce the original loan documentation (which has usually been discarded by that time anyway). I used this process about 15 years ago when buying a house. I had gone through some rough times in the 1980's and my credit report looked like someone had wiped their arse with it. I disputed EVERYTHING that was negative and ALL got dropped. I started out with a bad rating and 3 months later I had a perfect rating. (I do not advocate non-payment of legitimate debts...) Edited to add: Get a copy of Life After Debt (google it) and follow it like the Bible. It worked for me, 'nuf said... 
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I'm in the mortgage business, been a broker for 7 years. Some investors will require charge-offs to be paid prior to closing the loan. A lot of it depends on the amount of the charge off. 748 is a good score, but I would still dispute it through the bureaus and get it removed. Equifax: 800-685-1111 Experian: 888-397-3742 Trans Union: 800-916-8800 |