Mortgage tied with credit card debt

[0804]

Just went thru a refi for my house after a long time. Before I got approved by the bank, I have 1 charge-off and 1 collection. In order for me to get refi, the bank forced me to pay off both charge-off and collection by getting some equity out of my house. So I agreed. However, after my loan has approved, my escrow hand me a check to pay the charged-off account( discover). I'm wondering do I really need to pay off the charged-off account since I already got my loan approved?

I'm asking this is because this charge off has been around 6 years and I have 1 more year to go in order for this negative item to come off from my report. So what should i do?! help!!

[sisflomi]

You might want to try and make a settlement with them for these accounts. Here is why, when you agreed to the loan, you agreed to pay these off. You loan co agreed to give you the loan because you agreed to pay the accounts. If you don't pay them, you could risk the chance of them taking the loan back from you. Read your paperwork really good and see just what it says. I am not sure if this could really happen, but you might want to make sure before you decide not to pay them.

[firstsource]

Yes, there is normally a condition of the loan that those be paid off, but sometimes the lenders don't put it in there.

If you do what Sis suggests (which I totally agree with) get the creditors to agree in writing that they will take X amount (probably start with a 25% offer and accept a 50-55% offer) and when you pay that they will report as a "paid collection", not as a "settled" account. makes a difference when the next lender looks at your file.

Charles

[md]

For purposes of your credit worthiness for other types of credit, it would be much better to just have the tl removed as any collection tl will hurt your score.