What Show On Your Credit Report After You Settle A Charge Off

**shobam** · 11-27-2010, 04:11 PM

As explained in another thread, I have a charge off on a HELOC from E*TRADE CLC that sunk my credit score about 100 points. They did this 3 days after we closed and before they ever even asked for a settlement. Now we are in the settlement phase of this night mare. Supose that we settle soon, what does E*TRADE CLC report. Charge Off but settled for less? Anyone know? How long will it be before my credit score begins to rebound? I do have several open accounts in good standing that have never been late in including my primary residence mortgage.

Anyone been here before? I had a credir score of 805 the day I agreed to a short sale March 2009, its now 538

**Evan Bedard** · 11-28-2010, 11:57 AM

Charge Off but settled for less? Anyone know? How long will it be before my credit score begins to rebound? I do have several open accounts in good standing that have never been late in including my primary residence mortgage.

Anyone been here before? I had a credir score of 805 the day I agreed to a short sale March 2009, its now 538

I is common for ones credit score to go down about 100 points or so after their account has been charged off. Your credit should not lower any further after the settlement and your account will most likely be reported as "settled for less than full amount." You should start to see your credit rise within a few months as long as you keep up to date on all of your other debts..

**shobam** · 11-28-2010, 02:26 PM

Thanks for the input Evan, I wish that I had found this blog back in Feb of 2009, I would have done that short sale a whole lot different

**topock** · 12-13-2012, 03:49 PM

my credit card debt has gone to a collection agency, does that mean it is a charge off?
is a charge off the same as a judgment?

**Evan Bedard** · 12-13-2012, 04:22 PM

Originally Posted by topock

my credit card debt has gone to a collection agency, does that mean it is a charge off?
is a charge off the same as a judgment?

No a charge off is not the same as a judgement. However, yes if your account has been sent to a collection agency it has more than likely been charged off. You are referring to your 2nd mortgage correct?

**topock** · 12-13-2012, 04:34 PM

no ,.,. credit card debt,

**topock** · 12-14-2012, 06:20 AM

Originally Posted by Evan Bedard

No a charge off is not the same as a judgement. However, yes if your account has been sent to a collection agency it has more than likely been charged off. You are referring to your 2nd mortgage correct?

to get a judgment against me, they would have to take me to court, and the judgment would happen there? am I correct?
and that would take some time to do all that,?

**bankwhipped** · 12-14-2012, 07:31 AM

Originally Posted by topock

to get a judgment against me, they would have to take me to court, and the judgment would happen there? am I correct?
and that would take some time to do all that,?

After 6 months of no payment they have to charge off which means nothing as far as you should be concerned. They sometimes give it to a collection agency to collect for them, sometimes they sell it to them, sometimes they keep it in house and try to collect.

You are correct they would have to sue you before they can get a judgement. Even if they sue you, unless you do not respond, they don't always get a judgement. If you respond to the suit you stand a chance that they will not get a judgement. They file suit usually in hopes that you won't respond and they can get a judgement by default. Once they file suit, depending on your state, it can take up to or more than a year provided that you file a response and make them prove you owe it, if they don't file a response to your response within a year(depending on your state laws) then you or the courts will move to dismiss.