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What happens when a CA sends the debt back to the OC


Drake Savory
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I know I'm flooding the forum but like I explained in a previous thread, the mortgage broker gave me 2 weeks to repair the wife's credit which means that I have to short-circuit a lot of the do this and wait 30 days strategy.  If a CA sends the debt back to the OC, then does the CA automatically (or are they required) to delete the lineitem?  I see some success stories online where the OC is not reporting but the CA is, the  CA sends the debt back to the OC and the CA line is deleted.  You then pay the OC and presto - no lineitem on the debt.  YaY!

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I know I'm flooding the forum but like I explained in a previous thread, the mortgage broker gave me 2 weeks to repair the wife's credit which means that I have to short-circuit a lot of the do this and wait 30 days strategy.  

 

Yes, you are flooding the forum and to help you with a specific strategy is very hard when you start a brand new thread with each thought you have on the issue rather than keeping it all in one place.  People are not likely to hunt down all your individual posts and when they only have bits and pieces of the information you are not going to get as accurate information back.

 

If a CA sends the debt back to the OC, then does the CA automatically (or are they required) to delete the lineitem? 

 

NO, they are not required to delete the trade line.  They are only required to report accurately which could mean they report it as closed and returned to the OC.  

 

I have to be honest:  the chances of your clearing this up in two weeks without paying it AND getting a 30 point jump in a FICO score for a mortgage are a LONG shot.  It theoretically is possible but rarely happens.  The time to start dealing with the debt on credit reports was at least 6 months to a year before finding a house and trying to get a mortgage.  Once these CAs figure out you want a house they will play hard ball and you will pay handsomely for it.

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Clydesmom you are very judgmental.

You're attitude in the other threads has been that to have good credit, don't get into credit trouble to begin with.  Great, that really helps me now.

6 weeks ago, our landlord told us that despite his assurance our lease would be renewed that nope, we were out at the end of the month.  A month ago a mortgage broker looked at our credit and said that we would be able to qualify for a mortgage but it would be close so don't do anything.  A week ago i.e. a week before closing the mortgage broker said "Oh by the way, this type of mortgage you can't have any collections within the last year even if paid off.  Just get them to send you a letter saying they made a mistake and will delete them off your report."

 

So yes, maybe if I was psychic I would have started this six months ago but I guess my ESP isn't working.  So I have been put in this position by people who think deleting items is a piece of cake and if I don't pull this off in the next 4 weeks (the seller was nice enough to give us a 30 day extension) my family will literally be homeless.  So tone down the condescension and if I'm not worthy of your help because I'm obviously to stupid to handle fixing a FICO score then fine, don't help.

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Clydesmom you are very judgmental.

You're attitude in the other threads has been that to have good credit, don't get into credit trouble to begin with.  Great, that really helps me now.

6 weeks ago, our landlord told us that despite his assurance our lease would be renewed that nope, we were out at the end of the month.  A month ago a mortgage broker looked at our credit and said that we would be able to qualify for a mortgage but it would be close so don't do anything.  A week ago i.e. a week before closing the mortgage broker said "Oh by the way, this type of mortgage you can't have any collections within the last year even if paid off.  Just get them to send you a letter saying they made a mistake and will delete them off your report."

 

So yes, maybe if I was psychic I would have started this six months ago but I guess my ESP isn't working.  So I have been put in this position by people who think deleting items is a piece of cake and if I don't pull this off in the next 4 weeks (the seller was nice enough to give us a 30 day extension) my family will literally be homeless.  So tone down the condescension and if I'm not worthy of your help because I'm obviously to stupid to handle fixing a FICO score then fine, don't help.

 

NO WHERE did I pass judgment on you.  I told you the reality of what you were trying to accomplish.  The facts are pretty straight forward:  managing your debt is the best way to increase your FICO scores.  ANY major improvement in the scores takes time and two weeks is not enough.  There is no law that requires or forces a creditor to do PFD.  If they won't do PFD you will have a paid collection on your report and that could hurt it more initially.  

 

The information you GET is only as good as what you give.  You started a half dozen or more threads with bits and pieces of information that made it clear you did not understand the FCDPA and FCRA.  You had a goal but no one but you knew what it or the motivation was and then after five or six threads of not being told what you wanted to hear you reveal you are trying to buy a house.  MOST people trying to buy a house are doing so of their own volition.  How was anyone here to know your lease was not renewed?  

 

THEN after being told the cold hard reality over a week or more that what you are trying to accomplish is very very hard you give the entire story.  To you it seems harsh because you knew all the facts.  We can only answer based on what little we knew.  I can sugar coat what I said and put hearts and flowers around it but the reality of your situation is not going to change.  

 

@willingtocope told you the exact same thing:  you MIGHT get those collections removed but there will not be enough time to affect the FICO mortgage score.  It isn't out fault you didn't hire the best mortgage broker and no one here is your landlord who is not renewing your lease.  We did our best to educate you on the laws on reporting.  I can't get your landlord to renew your lease or under write your mortgage.  Sorry.  You will have to solve that issue yourself.  

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Clydesmom is correct - having worked as a mortgage loan officer, the moment an OC/CA or JDB figure out you want to buy a house, they become extremely hard to remove.

 

The settlement amounts often increase and I've even seen some file suit in order to get a judgment to record against the property you're planning on buying. Anything like that causes a lender to end the loan process. My former employer required all bad debts over $1,000 to be paid - not removed, but paid in full before the loan could proceed.

 

Also, many JBDs and CAs sign up for trigger leads - meaning if you have a credit inquiry from an auto lender or  mortgage lender they will bombard you because they know that they have all the power.

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FTR: I never told the creditors this was to buy a house.

 

You didn't have to.  As @1stStep said the creditors pay the reporting bureaus for lists of consumers who app for a mortgage.  Once you applied they were alerted that you apped for a a mortgage and knew you would come calling to pay them off in order to be approved.

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