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Will paying charge offs reset the SOL?


kepok
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My DH has 3 charge offs that we have to settle before we can get our new mortgage to go through, even though they are WAY past SOL. Will settling with the OC reset the SOL? And Where can I find documentation that states information on this in the FCRA or FDCPA?

Thanks for all your help!

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In most states, as long as you didnt sign a new agreement, it wont re-start the sol.

Why are they making you pay them off if they are past the sol? Why don't you get together all your state laws and draft a letter up to the lender. It can't legally be collected and they can't get a judgment nor put a lien on the house. Maybe you just need to discuss this with them.

Before you settle, tell us your state, who you owe and what the balance is on each one, and when was the last time you paid them.

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I had posted several messages about paying off the debts to get my mortgage. You had suggested an escrow account. The mortgage guy had said they can't do the escrow stuff, and I didn't want to risk loosing our interest rate as it is because we got it at 5.375% which is just amazing for my DH's credit. All 3 charge offs should fall off next year. I was wanting to make sure they wouldn't reset the DOLA since we paid.

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oh, and forgot to mention the mortgage guy is a good friend of DH's, we asked him why we had to pay since the SOL was up, and he said it was because we were doing a conventional loan apposed to FHA. He said if we were doing an FHA loan, it would actually be dealt with by a person in which you could explain circumstances , SOL ect.

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Sorry for not remembering before I posted. I speak to a lot of folks here. If this is a friend of your DH's, he should be working a whole lot more to get you a better deal than having to pay them off.

Have you looked into the FHA? It might be a better way for you to go. I dont see why you can't still explain this info to the lender of a conv mort, but I am not up on them, so it could be right. It just seems weird that a lender wont look at the whole picture.

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