Re: Charge-offs vs. Collection?

Posted by crash22 on October 31, 1998 at 14:08:43:

In Reply to: Charge-offs vs. Collection? posted by Matthew Vandergrift on October 30, 1998 at 11:07:39:

Matt,
There is a difference. A charge off is an account such that the creditor has no interest in collecting on the debt. He has effectively "bit the bullet" and "wrote off" your account as a loss. A collection is an account in which a collection agency or creditor still has an interest in collecting the debt. As such, you are probably are still getting harassing phone calls and the like. In any event, both are not that great on your credit.
As for you getting a mortgage, most lenders only look at the past 2 years when evaluating your application. If this happened five years ago, you should be all right. However, when they see collection on your file, you will have to provide proof that the accounts are paid in full. This must be in writing. The lender won't consider your application as long as there is a balance owed showing up on your file. The reason is that there is risk of foreclosure(allthough small) to the lender and they don't want that. To get your house, get those deliquent accounts paid, and get proof. After that the way is clear. Good luck.
Crash22

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• Re: Charge-offs vs. Collection? Christine Baker 17:38:17 12/16/98 (0)

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: Matt,
:      There is a difference.  A charge off is an account such that the creditor has no interest in collecting on the debt.  He has effectively "bit the bullet" and "wrote off" your account as a loss.  A collection is an account in which a collection agency or creditor still has an interest in collecting the debt.  As such, you are probably are still getting harassing phone calls and the like.  In any event, both are not that great on your credit.
:       As for you getting a mortgage, most lenders only look at the past 2 years when evaluating your application.  If this happened five years ago, you should be all right.  However, when they see collection on your file, you will have to provide proof that the accounts are paid in full.  This must be in writing.  The lender won't consider your application as long as there is a balance owed showing up on your file.  The reason is that there is risk of foreclosure(allthough small) to the lender and they don't want that.  To get your house, get those deliquent accounts paid, and get proof.  After that the way is clear. Good luck.
:                         Crash22


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