3yr old debt with Chrysler Financial

[matt2402]

OK...this is going to sound odd...but its the honest story...I'm not trying to be sneaky on this...but I need help.

I got approved for a mortgage yesterday at a good interest rate (5.875%) and overall good terms (320k, 30yrs, no points). But, one of the requirements is that I provide proof that the balance shown on my Chrysler Financial account is paid off. The last time Chrysler reported to the CRAs was August of 2000. It's currently being reported as 60 days late with a balance of $9077.

OK, in July of 2000 my Dodge Avenger caught on fire. It wasn't set, it was an electrical failure. It was only 4 years old. A Chrysler representative came out and inspected the car. Later that day, a Chrysler dealership came and towed it away. I gave them my insurance information and that was that.

I spoke with my insurance agent yesterday, and she said that there was never a claim placed and they never paid Chrysler, or anyone else.

So, it's been over three years. Chrysler has never contacted me, and never updated my CR's other than saying it's 60 days late.

Here's my dilema. I need to get this taken care of before I close on a house. We're just pre-approved...haven't found a property yet. I'm concerned if I just call them to ask them about it that I'll be waking a "sleeping dog". Then, I assume they could come back and sue me. I don't want that. What should I do? Should I try to settle? Should I do DV or something? I'm worried. If I have to pay them the whole 9k, we won't have money for the DP.

I know this sounds strange...but any advice would be great!

Thanks so much.

[nativechild48]

You never went and checked on the car or inquired as to when it would be repaired Is it possible there was something wrong with the car and they saw this and had it removed to avoid a lawsuit You have to contact them and ask them to remove this tradeline or dispute it with the CRA's. Perhaps someone else has something to offer. I don't understand they never wrote or called you