Charge Off

Does anyone know if this would really prevent someone from obtaining a
mortgage IF they don't have any other blemishes on their credit? I've
been reading about how those that short sell should be able to borrow
after 2 years, and those that foreclose will need to wait 5. So, it
seems to me that in light of that, a charge off on an acct. 3 years
ago shouldn't weigh so heavy that it costs someone a mortgage. I'm
genuinely curious about this, so does anyone have any experience with
this?

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.

with MA Cunningham. Rowdy, I don't know you, won't know you, and have
no animosity towards you. I assume that your posts are geared towards
helping people enjoy life and stay out of debt. I gather in your
posts that you're a Christian (me too) and I think you genuinely are
trying to help people. However, canned responses to any complaint
involving credit cards that they should "just use cash" aren't helpful
to them in their current situation nor do they help you get your point
across. Not everyone was as fortunate as you and I to have the values
of financial discipline instilled in us, most people in debt are
mimicking what their parents did. Perhaps if you gave more of an
explanation as to why you feel cash is better, other than one or two
sentence replies, it might sound better. I'm no Pulitzer winner, but
I do have a Journalism degree so I have an idea about the impact that
words and how they're used have on people.

By the way, kudos to you and your wife for being foster parents. In
this culture, there is a desperate need for orphaned or at-risk kids
to have good role models and influences. God bless! :-)

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.