FHA Requirements for “Charged-Off” Accounts

Question: My client has a charge-off from several years ago.  Is this required to be paid off prior to closing? Answer: No.  A charged-off account would not need to be paid off unless it reappeared as an active collection, and then it would depend on the circumstances.  See the full guideline below. Reference:FHA Handbook 4000.1 […]

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