What Does A "Chargeoff" Mean?
I co-signed an auto loan for a friend a number of years ago and the car was repossessed. It was put on my report as a $5 charge-off and it affected my scores.
Since then I have gotten a number of loans with no problems. Now I am in processing for another loan and the processor is saying that the default (over $10K needs to be paid off as a condition of this new loan.
Any ideas how to deal with this situation? How do I prove that I am no longer responsible for this amount?
Thanks,
JS.
If it is a condition of the loan, then you are going to have to settle the charge off to get the loan. You are responsible for the loan as you co-signed and guaranteed that the loan would be paid and it was not.
I am not a mortgage person and this is probably a mortgage question. I am guessing that the loan you are applying for is a type of mortgage. Ask the question again in the lending or mortgage forum.