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Gmac Charge-off

Discuss the legalities of Bankruptcy Law

Gmac Charge-off

Postby kienan » Sat Dec 03, 2016 4:52 am

I recently found out that GMAC charged off my account. I owed over $6000 for over mileage. I also turned the vehicle in 2 months before lease end and they are reporting it as a repo.   My question is: I want to purchase a house in the beginning of 2010 probably FHA. Will they require me to pay this off?  What can I possibly do to make this look better on my credit report?

ANSWER: Hi Julie:

I think it is likely you will have to address that to get a mortgage.  Sometimes older and smaller charge offs can be ignored but I would be worried because of the amount.  The lender would worry that you could be sued, have a judgement placed against you, and have wages garnished or otherwise impede your ability to pay the mortgage you are trying to get.  It may help if it is outside the statute of limitations.

You should start by disputing the account directly with the credit bureaus.  Send a simple, generic letter to Equifax, Experian, and Transunion disputing the account.  They will respond back to you in writing in about 25-35 days.

Depending on how old this is, you can get more aggressive and challenge the lender.  is the amount correct?  Why is reporting as a repo?  Was it a legal "repo?"  Is it reporting the same on all three credit reports?  If not the same, how can all three be correct?  The idea is to get a violation of the Fair Credit Reporting Act and use that violation as the means to remove the account from your credit reports and/or offset the actual debt owed.  It is easier to do this if it is outside the statute of limitations.  At the very least, it is risky to do within two years of the "repo."  

It is possible any activity, disputes, or inquiries on this account may spur them to sue you.  Proceed at your own risk.

Good luck, I hope this helps.

Regan

[email protected]

---------- FOLLOW-UP ----------

I turned in the car around Nov 2008. I did dispute with the credit bureaus and that is when they slapped the charge off on my report. I am all new to this so I was not sure really what I was doing.  : Do you think they will settle with me? If so, do you think they would take a few payments? Sorry, one more question. Is this true, Such a large amount where they could possibly roll this in a mortgage?  
kienan
 
Posts: 49
Joined: Fri Apr 01, 2011 1:08 am

Gmac Charge-off

Postby Beaufort » Sat Dec 03, 2016 5:35 pm

Most lenders are open to a settlement in this economy.  Get it in writing BEFORE you send ANY money.  I would also try and include the deletion of the account from your credit reports as part of the settlement.  The more financially strapped you appear to the lender, the more likely they will settle.  A real threat of bankruptcy will get the best terms from them because in a chapter seven bankruptcy they would get nothing.

I think it is unlikely you will be able to roll the auto shortfall into a mortgage because there is no incentive for the mortgage lender to do so.  It just adds debt and lowers the loan to value of the property they are lending for.

Good luck,

Regan
Beaufort
 
Posts: 43
Joined: Tue Jan 07, 2014 6:24 am

Gmac Charge-off

Postby gerard » Thu Dec 08, 2016 3:25 pm

I recently found out that GMAC charged off my account. I owed over $6000 for over mileage. I also turned the vehicle in 2 months before lease end and they are reporting it as a repo.   My question is: I want to purchase a house in the beginning of 2010 probably FHA. Will they require me to pay this off?  What can I possibly do to make this look better on my credit report?

ANSWER: Hi Julie:

I think it is likely you will have to address that to get a mortgage.  Sometimes older and smaller charge offs can be ignored but I would be worried because of the amount.  The lender would worry that you could be sued, have a judgement placed against you, and have wages garnished or otherwise impede your ability to pay the mortgage you are trying to get.  It may help if it is outside the statute of limitations.

You should start by disputing the account directly with the credit bureaus.  Send a simple, generic letter to Equifax, Experian, and Transunion disputing the account.  They will respond back to you in writing in about 25-35 days.

Depending on how old this is, you can get more aggressive and challenge the lender.  is the amount correct?  Why is reporting as a repo?  Was it a legal "repo?"  Is it reporting the same on all three credit reports?  If not the same, how can all three be correct?  The idea is to get a violation of the Fair Credit Reporting Act and use that violation as the means to remove the account from your credit reports and/or offset the actual debt owed.  It is easier to do this if it is outside the statute of limitations.  At the very least, it is risky to do within two years of the "repo."  

It is possible any activity, disputes, or inquiries on this account may spur them to sue you.  Proceed at your own risk.

Good luck, I hope this helps.

Regan

[email protected]

---------- FOLLOW-UP ----------

I turned in the car around Nov 2008. I did dispute with the credit bureaus and that is when they slapped the charge off on my report. I am all new to this so I was not sure really what I was doing.  : Do you think they will settle with me? If so, do you think they would take a few payments? Sorry, one more question. Is this true, Such a large amount where they could possibly roll this in a mortgage?  
gerard
 
Posts: 49
Joined: Thu Mar 31, 2011 10:09 am


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