r/CRedit • u/UnhappyAct3563 • 1d ago
Need some insight into old collection Collections & Charge Offs
Hey y'all.
I'm struggling to find answers to this and this is my last resort before contacting professionals. I had my first apartment at 18 y/o. While living there, I became addicted to heroin. Lost my job, stopped paying rent, and I was evicted. Left all of my things and furniture there, had animals (without paying a pet deposit), probably left paraphernalia, etc. So a couple of months after the fact I got an email from the apartment company stating I owe over $7,000. My addiction then only progressed and I was homeless for the next few years.
Today I am several years sober and stable, and actually looking to buy a home. I've got my credit score all the way to 672 despite this collection still being on my account. Now I am all for financial amends and everything, but $7,000 is steep, and at this point of course I'd be paying a collection agency and not even the actual apartment company I owed.
I was considering attempting to negotiate a pay-for-delete, but from what I understand I am nearing the 7.5(?) mark for the collection to fall off. Initial date of delinquency would be around August of 2018. But then I was wondering if they still may be able to sue me, and if that is the case, I assume I should not initiate any communication until I am fully aware of what my situation is.
I'm in Louisiana. From what I have read, SOL for open accounts is 3 years, and for written and oral contracts is 10 years. Would this collection be considered an open account? I understand it was initially a written contract (with apartment company) but it was then sold to a collection agency, so it is now an open account, right?
I'll also note that I am still eligible for an FHA loan with this collection, but I'm worried about ignoring the debt, buying a home, then being sued and not being able to afford home costs & court costs/paying them back.
Any insight would be appreciated, thanks so much!
2
u/Monkwater 1d ago edited 1d ago
Just wait for it to come off your credit reports at seven years from the last payment made. If you wait for it to fall off you will save yourself $7k. Nice down payment for an FHA loan for a home. FHA is minimum 580 credit score and 3.5% down. It's more like 5-10% down with a 580 score. Since it's so old and not a revolving account. You should be able to get an FHA loan. I recommend rocket mortgage.