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Hello, if a similar post exists, please let me know and discard my post. Thank you.
Three years ago, I had a lengthy short sale. At the end of the process, I settled with the bank by paying as much as we can on the loan with a balance as debt forgiveness. In the after settlement letter, the bank said the debt forgiveness will be reported as "account paid in full for less than the full balance". As little as I understood back then, I didn't think this would be a problem for getting a mortgage in the future when we rebuild our life.
Now we are trying to buy a home and getting a mortgage, the lender pointed out this particular report on the short sale three years ago. Currently on my CR, it says:
XXX Bank INS 03/11 91125 Coll/ChrgOff TRU01 acct#YYY 180 M 637 06/07 88215 0 * 03/11 637 3822 (EFX,XPN) SECURED UNPAID BALANCE CHARGED OFF The lender indicated that this line is a concern for the underwriter and should be changed to something like "balance is zero". Could you please give me some advice/directions how I can fix this: 1. Should I contact the short sale lender and request them to change the report? If so, what should I ask them to change to? 2. Or should I dispute with the CRAs (if it's disputable)? Thank you so much for your help!
I have been trying to deal with two old HSBC accounts that were charged off. Long story short, I had 2 HSBC cards charged off before Cap1 bought their US credit card business. They went to Cap1 and I battled them for removal by disputes, EO action, and a CFBP complaint. Nothing came of any of those attempts. They have now been assigned back to HSBC from what i can tell because they now list the po box 9 address in Buffalo instead of the Cap1 Carol Springs, IL address.
I have done recent CRA disputes about these accounts and here's how they are reporting (and came back as verified):
Experian is reporting these as positive trade lines that will will remain until 2021 with the notation "sold to another lender" and a "closed" date in mid 2011. No payment history is reporting at all. No balance due. No charge off notation. Shows up on the backdoor online dispute in the positive accounts section.
Transunion and Equifax are reporting these accounts as charge off accounts with "closed" dates of late 2010. Payment history shows lates leading up to CO. Purchased by another lender noted.
Which of the following methods would you use? Or do you have a different idea?
1. I have a 623 letter typed up with all of the issues mention above plus a few more. The two outcomes I think may come of this are either:
(a) it will be removed because of the incorrect reporting or lack of records to review it since it went to Cap1 and then came back
(b.) they will change the experian reporting to show the CO making it a negative account again
2. File a CFPB dispute for the trade lines reporting completely differently after disputes. I have copies of the disputes showing the completely different reporting.
My goal is complete deletion of these trade lines.
I am looking for help on what to do for a Bank of America credit card account that was charged off in December 2012. If I remember correctly, I actually paid this account off in full, but I don't remember for sure as I had a number of credit cards in bad states at that time, so one may have actually been charged off.
The status is "Closed. $1,992 written off." The comment says, "Purchased by another lender." I do not recall ever being contacted by a JDB for this account, but it may have been them that I eventually paid off in full. Though I would have thought that would have been much earlier than late 2012 or early 2013. The first month reported for this TL on my credit report is Septemeber 2009, and it is clean until January 2011. The following negative items appear from that date:
1/11 - 30
7/11 - 30
12/11 - 30
3/12 - CLS
4/12 - CLS
5/12 - CLS
6/12 - 30
7/12 - 60
8/12 - 90
9/12 - 120
10/12 - 150
11/12 - CO
12/12 - CO
I do not recall getting any notices in 2012 or thereafter. Anyway, I am guessing I need to send a validation letter. Let me know if that is incorrect. But, if it is correct, can someone point me in the right direction? I would be grateful for a sample letter. I will of course not use said letter, but it would be nice as a starting point to get my bearings and craft a letter to my specific situation. Also, how do I need to send that? Certified mail return service requested?
Any help in getting started with this negative TL is most appreciated. Really, I could use step by step instructions or a link to where to find them.
I received a Form 1099- Cancellation of Debt. I paid the the tax to the IRS on this account. Chase is still reporting this on EX as a charge off with a recent balance of $7,713. This same account has been deleted by TU and EQ. What is the best way to get this remove from EX? EX keeps confirming that this account has been verified as accurate. Any help will be appreciated.
Is there a way to get the CRAs to remove/delete a charge-off from my file if the OC has updated it from a balance owed to $0 and transferred? I have tried to get it updated or deleted and only one CRA has changed it from a charge-off. This is the only neg reporting thing on my report but it's still there and it has cost me nearly 175 points.
So, the cliff notes version of my backstory goes a little something like this:
I had an account that I chose to close because they wouldn't give me a CLI. I was told I could set-up autopays for the remainder of my account balance until satisfied. About six months later I was applying for a loan to help pay for law school and got declined. I was surprised because my scores were all in the 700's. I discover that this closed line was reporting 120 days late. Im fuming at this point and seeing red. I contact them and they say I haven't made a payment since the account was closed and I proceed to argue with them that's not accurate. I subsequently check the account I set-up drafts from to see all the money still sitting there. I speak with a girl who informs me that I can pay the past due, minus the fees, and then continue paying the account down. I could also request the late fees and such to be removed or credited due to the clear misunderstanding.
I pay the nearly $1k and move on. About 10 days later I get a call from a CA that my account was sold to them. All HELL effectively breaks loose. I go through a BS circle of "he said" "she said" on my account and ultimately they refuse to correct their mistakes. The CA is confused because they see the large payment made and don't quite understand what has happened. While I proceed to escalate my complaint to the corporate offices of this bank and promise legal action if the now reporting charge-off isn't removed, the CA tells me they won't report anything on my credit if I want to just pay them the remaining balance. The catch is it has to be in full. So I agree, but it needs to be split up into two payments.
About 2 weeks after the first payment goes through, a collection account pops up on my credit reports. Need I say my eyes are once again seeing red?!?! I reach out to the CA and tell them they lied and violated an agreement. I accuse them of fraud and they guy tells me the rep that made the agreement with me "misspoke" but that he would speak with their legal team and see what they could do. I didn't hear back from him for a week and sent them an email which also served as my notice to file suit. They never replied. I blocked their access to my account and reached out to an attorney. After consultation, I proceeded to make good on my notice of filing a federal lawsuit against them for multiple violations, including breach of contract, attempt to defraud and FDCPA. Meanwhile, they continued to bury themselves by leaving vmails, all of which broke the FDCPA each time by not giving the "this is a debt collector and message only for Bld08" elevator speech, prior to leaving the message and two of them they admit to making a mistake by reporting the item and that they were trying to have it removed but that it would not really fix my credit score. My lawsuit is still ongoing, as it was filed in federal court on Sept. 4, 2014.