Charge Off

prevent someone from obtaining the mortgage IF the underwriter decides
it does. There is NO forumla written....

Some underwriters won't have an issue with it...especially after 3
years and some WILL.

it doesn't matter if it's been paid off.

if the charge off was valid, it stays for 7 years



credit reports exist to show a person's true credit history

"As Verizon has been paid for going on 3 years the full amount that
was owed, there is no more incentive to continue reporting the Charge
Off on my records "

But there is. It's part of your credit history and is being reported
acurately from what you say. The whole point of a credit history is
that it shows just that, your history. If we could have everything
bad removed once we paid it, there would be no point in having credit
scores.

I would suggest not getting the home loan.

Stay where you are, or get into something cheaper for a short period
of time, and pile up the cash. I'm not a big fan of renting, but if
you are doing and are going to pile up cash and avoid a mortgage its a
smart move.

Mrs Rowdy and I did that many years ago. Bought a forclosed house from
the bank for 40k. We had been saving and paid cash for the house.
Granted, it needed alot of work, but we made repairs when the cash
came in.

Today we have no house payment, no car payment, credit cards, no debt,
except for our everyday living expenses.

The good book says the borrower is slave to the lender. Once you sign
that dotted line they own you.

Good Day

If it's reporting as a 3 year old paid charge off, that in itself
shouldn't be enough to prevent you from getting a mortgage. I had
some screwups earlier with my credit, but did not have any problems
getting my mortgage just last year. There have to be some other
entries on there that are more likely causes of any denials you're
getting. A 3-year old chargeoff shouldn't carry enough weight to
cause a denial by itself.

But it's accurate, so it should stay.

I think you will find "going on 3 years now" means you have over 4
years to wait for it to be removed.

A chargeoff is a serious matter, along the lines of bankruptcy.
Notations of these just don't go missing.

It isn't a matter of "incentive". The purpose of it on your report is
to let potential creditors (eg a mortgage lender) know that you may be
a credit risk. I have never had a single negative mark on my credit
report. Shouldn't I have an advantage over someone who has?

Byron J.,

The issue is was this debt turned over to collections and paid off by
you after it was due in full. If that is the case you can and should
expect that entry to remain on your creditr report for up to 7 years.
If you can prove that the debt was paid in full prior to it being
turned over to collections you might stand a chance of having it
removed as an error.

BillR.