pford Posted February 22, 2005 Report Share Posted February 22, 2005 I have applied for a mortgage and a charged off account was on my credit report that I honestly didn't know about. I have always had a FICO score of about 790 and in the last couple of months if went to 675. My ex-husband stopped paying on a Sears account in 2000 and it charged it off in Jan of 2001 and it was then sold to a collection agency who obviously didn't have my address or phone number.So now, my mortgage lender says they want me to just wire the money to some collection agency! I called the collection agency to get all the information and they started yelling and screaming at me that I didn't have any rights and to just pay the money or else. The SOL has already passed, but it still has a couple of years to come off my credit.I don't know what to do. Do I just wire them the money so I can have my mortgage? This is very painful to have to even think of a marriage that ended 8 years ago. 8 YEARS AGO!!! And, he is still haunting me.Can someone give me some advise?Thank you Link to comment Share on other sites More sharing options...
anti-something Posted February 22, 2005 Report Share Posted February 22, 2005 were you responsible for the account? was it in both names or just his? Link to comment Share on other sites More sharing options...
firstsource Posted February 22, 2005 Report Share Posted February 22, 2005 DO NOT PAY THEM, without some consultation as to the right way to do it. If you pay them now, your scores will drop, as your Date Of Last Activity will become more current. Have the lender make it a condition of funding, that you take care of the collection account, and just do it the day of closing. If they dont want to do it that way, find another lender. I would suggest that you go to http://www.debt-consolidation-credit-repair-service.com/phpBB2/viewforum.php?f=2and PM either DocDon, or LadyNRed or just post your question there, as to the best way to handle this problem.Charles Link to comment Share on other sites More sharing options...
DocPC Posted February 22, 2005 Report Share Posted February 22, 2005 If the account was joint, you will have to pay.If you were only an AU, you have no responsibilty. Link to comment Share on other sites More sharing options...
DocDon Posted February 22, 2005 Report Share Posted February 22, 2005 The CA threatened you with what?Who is this CA?Is there anything written in your decree regarding this account?What state are you in?How much are they claiming is owed? Link to comment Share on other sites More sharing options...
amortgageman Posted February 22, 2005 Report Share Posted February 22, 2005 If the account was specifically addressed in the divorce decree and you were no longer responsible (by divorce), then present a copy of the divorce decree to the lender, and you will be fine. (Conforming loans will allow this)Follow up with some of the other suggestions from the other members about how to deal with the collection agency.Please note that the credit underwriting will excuse the debt, but the debt itself is not forgiven by a divorce decree. Link to comment Share on other sites More sharing options...
pford Posted February 22, 2005 Author Report Share Posted February 22, 2005 The CA threatened you with what? I asked them for documentation just to see what all this was about and they were screaming at me that "YOU HAVE NO RIGHTS TO GET DOCUMENTATION...PAY THE DEBT...YOU HAVE NO RIGHTS FOR ANY DOCUMENTATION." They wouldn't let me say anything.Who is this CA? Portfolio Recovery Affiliates in VirginiaIs there anything written in your decree regarding this account? No. If I remember correctly, this was in my name and I was so STUPID to trust that he would pay it because it was all merchandise for HIM. I didn't get anything out of it. (I understand fully that I will have to pay this. It took a few days for me to calm down and realize I have to bite the bullet.)What state are you in? Texas, but buying the home in TN.How much are they claiming is owed? The original amount was $1,325, but since they bought it, they say I owe $1850.Thank you so much for your help. Link to comment Share on other sites More sharing options...
pford Posted February 22, 2005 Author Report Share Posted February 22, 2005 Please note that the credit underwriting will excuse the debt, but the debt itself is not forgiven by a divorce decree.What does this mean? Sorry, but this is the first time I've ever had any problems and I am trying to understand the best I can.Thank you. Link to comment Share on other sites More sharing options...
DocDon Posted February 22, 2005 Report Share Posted February 22, 2005 I would suggest dealing directly with the OC on a settlement to resolve the matter. Notify the OC that the CA they hired is being reported to the apporpriate government agencies for violations of the FDCPA. Ask that they immediately recall the collection, and remove any negative information reported to the major credit repositories.Let's say you settle, and they won't delete any info. You have the CA on a violation as it is - that can be handled down the road, up to an including deletion, or recouping some of the money you spent paying off the account with the OC.My 2 cents... Link to comment Share on other sites More sharing options...
DocDon Posted February 22, 2005 Report Share Posted February 22, 2005 Please note that the credit underwriting will excuse the debt, but the debt itself is not forgiven by a divorce decree.What does this mean? Sorry, but this is the first time I've ever had any problems and I am trying to understand the best I can.Thank you.It means you won't have to pay it to get the mortgage, but you're still liable to the debt with the creditor.... Link to comment Share on other sites More sharing options...
pford Posted February 22, 2005 Author Report Share Posted February 22, 2005 I would suggest dealing directly with the OC on a settlement to resolve the matter. Notify the OC that the CA they hired is being reported to the apporpriate government agencies for violations of the FDCPA. Ask that they immediately recall the collection, and remove any negative information reported to the major credit repositories.The debt was sold to the collection agency. The OC was Sears.Can they recall it after it has been sold?Thank you Link to comment Share on other sites More sharing options...
DocDon Posted February 22, 2005 Report Share Posted February 22, 2005 Whoops. My bad. Well then... 2 choices right now. Pay it and move on, or fight it and put the house on hold for a bit. Link to comment Share on other sites More sharing options...
firstsource Posted February 22, 2005 Report Share Posted February 22, 2005 You may have to pay it, but you should not have to pay it until closing. It will hurt your scores, if you pay it now, and sometimes lenders run credit right before closing.Charles And with the account this old, you should be able to take care of the bill for less than the full amount Link to comment Share on other sites More sharing options...
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