Tag: Charge Off

Payoff Requirements for Charge-Offs

Question: What are the requirements when a client has a charge-off?  When does it need to be paid off and when does it not need to be paid off?  MC Chart – Collections and Judgments – All Agency Guidance Answer: Following is the information you will need from Fannie Mae. Reference:Fannie Mae Guide B3-6-07 & […]

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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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VA and Charge-Off Accounts

Question: The credit report shows a charge-off, but we have an approve/eligible through DU. What do we need to do with the charge-off? Answer: A charge off is not considered an active debt, even though that previous data is still showing in the account detail on the credit report. The creditor is now reporting the […]

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