The past-due charge-off mistake I see on mortgage files every week

Jason Hall · 2026-11-04T12:36:29+00:00

Here is a mistake I see on mortgage files every week: an original-creditor charge-off that still reports a dollar amount as past due. That balance is not just sitting there. Under every scoring model, a past-due balance on a charge-off is actively hurting the score. That is why settling it to a $0 balance helps even without deletion. The account stops reporting as past due, and the file looks very different to an underwriter. That is different from a third-party collection. With a collection, deletion in writing is the play under classic FICO, and that should always be the first ask. Original creditors often settle cheap because recovery on a written-off account is pure profit for them. Get the terms in writing first, and ask for deletion first — then settle to $0 if deletion is not available. If you are a loan officer with a borrower in this spot, I am happy to look at their report free and give you a straight read on what is fixable and how fast. No obligation.

Collections, Charge-Offs, Judgments, and Tax Liens

The past-due charge-off mistake I see on mortgage files every week

Posted by Jason Hall on November 4, 2026 at 12:36 pm
Here is a mistake I see on mortgage files every week: an original-creditor charge-off that still reports a dollar amount as past due. That balance is not just sitting there. Under every scoring model, a past-due balance on a charge-off is actively hurting the score. That is why settling it to a $0 balance helps even without deletion. The account stops reporting as past due, and the file looks very different to an underwriter. That is different from a third-party collection. With a collection, deletion in writing is the play under classic FICO, and that should always be the first ask. Original creditors often settle cheap because recovery on a written-off account is pure profit for them. Get the terms in writing first, and ask for deletion first — then settle to $0 if deletion is not available. If you are a loan officer with a borrower in this spot, I am happy to look at their report free and give you a straight read on what is fixable and how fast. No obligation.
- This discussion was modified 3 minutes ago by Jason Hall.
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