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Paying CFNA Charge-off Question


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My husband has a single old charge off on his account from CFNA/Firestone.  I would like to pay it off, it never went to a CA and is with the OC still.  The amount is $877.  My question is regarding how to handle paying it off.  I'd like to try to settle for less, if possible, but I can pay the balance if necessary.  I'm a bit fuzzy on the process though, when I call and ask to settle does this reset the SOL?  The last payment was made 6/1/2015, so it would fall off around June of next year.  From what I can tell CFNA is not very forgiving and probably won't remove early, but if anyone has suggestions or experiences to the contrary I'd love to know.  

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11 hours ago, JustSoSassy said:

Applying for mortgage :)


Have you already applied?

 

Have you been told explicitly that you can't close without settling this?  Or that this item is suppressing your score to the point that it's pushing you into a higher rate?

 

Or are you taking action speculatively based on what might happen in underwriting?

Edited by cv91915
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First, I should clarify, I mixed up terminology, fairly uneducated about the ins and outs.  My concern isn't SOL, as I will either PIF or settle, I'm concerned about reporting time changing from a few months to another 7 years.

 

CV- We have not "applied", the lender we plan to work with did a soft pull and told us that would need to be taken care of, that they will freeze or hold (pardon my ignorance and forgetfulness on terms) the application until it's paid or removed.  He also said that my husband's mid-score of 686 should increase.  He mentioned it may or may not be significant.  CFNA does update EVERY.DANG.MONTH.

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There are two distinct limitations period.  One is reporting and one is litigation.  In SOME jurisdictions, payment can reset that clock if the matter was not closed out by the payment.  However, reporting is driven by the date of delinquency from which the account was not brought current.  Period. 

 

Where you COULD see an impact is if they have not been reporting monthly and your score increased due to the lapse in time...an update could change that even though the update should zero out the balance. 

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I am still confused.  The account has updated every month.  So whether we pay it or not my understanding is it shouldn't necessarily hurt his score, ie it wouldn't be waking a beast, but may or may not improve his score due to balance going from 877 to 0.?

 

Am I understanding correctly that if I pay it we're probably looking at another 7 years with the charge-off, but at least paid charge off?  

 

I feel we are in a bind, the house we are renting will go on the market in January.  We have an incredible rent payment and won't find anything even close to what we are paying now, I feel that we're basically forced into buying (not that it's a bad thing).  I just wish we had an additional 6 months, but that isn't in our cards.

 

 

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6 hours ago, JustSoSassy said:

I am still confused.  The account has updated every month.  So whether we pay it or not my understanding is it shouldn't necessarily hurt his score, ie it wouldn't be waking a beast, but may or may not improve his score due to balance going from 877 to 0.?

 

Am I understanding correctly that if I pay it we're probably looking at another 7 years with the charge-off, but at least paid charge off?  

 

I feel we are in a bind, the house we are renting will go on the market in January.  We have an incredible rent payment and won't find anything even close to what we are paying now, I feel that we're basically forced into buying (not that it's a bad thing).  I just wish we had an additional 6 months, but that isn't in our cards.

 

 

If it has been reporting monthly, then there won't be much of an impact.  The negatives will still fall off at the appropriate point in time based upon the date associated with the charge-off event. 

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On 10/14/2021 at 2:35 AM, JustSoSassy said:

First, I should clarify, I mixed up terminology, fairly uneducated about the ins and outs.  My concern isn't SOL, as I will either PIF or settle, I'm concerned about reporting time changing from a few months to another 7 years.

 

CV- We have not "applied", the lender we plan to work with did a soft pull and told us that would need to be taken care of, that they will freeze or hold (pardon my ignorance and forgetfulness on terms) the application until it's paid or removed.  He also said that my husband's mid-score of 686 should increase.  He mentioned it may or may not be significant.  CFNA does update EVERY.DANG.MONTH.

 

Sounds like they've told you that the underwriter would require this to be paid at a condition of closing.  Given the age and the relatively small amount of money involved, that surprises me.  Was this a local bank or community credit union?  

 

I would have the same conversation with a completely difference company (try a mortgage broker) and see if you get the same answer.  It's worth a 20 minute phone call if you can leave this alone (and then put the ~$900 toward cool stuff for you new house :) ).

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