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Charge off is a shortened version of "charged off to profit and loss". This accounting term describes a bookeeping entry routinely performed by creditors. While there are technical differences, for a consumer charge off is the same as a collection account. They are both derogatory defaulted debts which are due and payable in full. They show on a consumer's credit report for 7 years from the last month/year when they were paid as agreed immediately prior to default. Charged off accounts frequently are transferred or sold to collection agencies and become the target of lawsuits to recover the money owed. Important to understand Charge Off is NOT a forgiveness of the debt in any way. It is only an accounting entry by the one who is owed. The discussion below, originally more on a tax Q, provides detail. Explanation Charge Offs & Forgiven Debt If what your asking is really
Wiki User
∙ 18y ago
Wiki User
∙ 15y agoIts' when a creditor/lender closes your account due to non-payment. This process takes place for tax purposes (so it's not a complete loss to the creditor/lender).
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If you have a charge off or write off on a car loan and the charge off is over 7 years old who owns the title to the car?
The lien holder owns the vehicle and can legally hold the title until the loan agreement is settled or paid in full.
How can you get a loan with a charge-off on your credit report?
An FHA loan would require that any outstanding collection accounts, judgment[s] and charge-offs be paid off in full before closhing your loan but not necessarily before approving your loan. The lender will look mostly at the last two years of your credit history.
What happen to second loan after foreclosure?
They only foreclose on the 1st loan. The 2nd will go as a charge off as bad debt. They may sue you to get a judgment on it. I had an 80/20 loan and on my credit the 80 loan was only showing as foreclosure, the 20 was coming up as charged off
What is gross charge off and net charge off?
Loan or debt which have been delinquent and subsequently written off are classified as Gross Chargeoffs. however in certain cases, partial recoveries may be made at a later date. The net charge off is the gross Chargeoff minus the recoveries.
Can a bank do a Charge off on a boat loan then Repo 3 years later?
no they cant only after 2 years
Is a charged off loan collectible?
yes a charge off loan is a collectible.
What is the journal entry to charge-off a loan?
journal entry to write off a loan
What is a charge off bank?
I've never heard of a "charge off bank" but I do know that a charge off account at a bank is where they bank has listed a loan as "uncollectable" and is probably reporting it to the credit bureau as a charge off or "bad debt". Hope this helps
If you have a charge off or write off on a car loan and the charge off is over 7 years old who owns the title to the car?
The lien holder owns the vehicle and can legally hold the title until the loan agreement is settled or paid in full.
How can you get a loan with a charge-off on your credit report?
An FHA loan would require that any outstanding collection accounts, judgment[s] and charge-offs be paid off in full before closhing your loan but not necessarily before approving your loan. The lender will look mostly at the last two years of your credit history.
How to fix auto loan charge off?
What do you mean by "fix" it? Do you want this taken off of your credit report? Was the loan legitimately charged off? Do you still owe a balance on the loan? If you have a legitimate charge off reported on your credit report, it cannot be legally removed. If you owe a balance and the charge off is recent, paying off the balance could help. However, the charge off will still show on your credit report for 7 years, and only time will remove it. Still, if you keep your credit in good shape otherwise, the charge off will hurt you less and less as time goes by. Read more about your credit report and score in the link below.
Can you get the title for charge off on your car?
The short answer is no. A charge off means you didn't finish paying off the loan. A charge off occurs when the the owner of the car fails to make the monthly payments. After 121 days of no activity on an auto loan the bank declares the loan a bad debt and the do a charge off to get that bad debt off of their books. They will never stop trying to collect the bad debt or repossess the collateral. The only way to obtain the title is to get a lien satisfaction letter from the lienor, (bank). The only way to get that letter is to satisfy the lien. So if your loan has been charged off you have to call the bank and see if you can get a payoff quote. Payoff the car get the letter and title
If your car has been charged off can it still be reregistered?
If the loan on your car was charged off then the lender has written it off as a loss. You can still renew your registration. It surprises me though that a lender would charge off a secured loan.
What is a pay off loan?
I'm not sure I know what a pay off loan is....... but I do know what it is to pay off a loan.Could mean pay your loan off.orPay the principle balance in full. They will usually deduct some of the finance charge if the loan is paid off early.Commonly found in:*charged off accounts*repossession accounts*complete loss accounts paid off by insurances
If there is a charge off on an auto loan and you have the car who does it belong to?
IF there is a LEINHOLDER on ANY title, it belongs to the LEINHOLDER.
What is a pay loan?
I'm not sure I know what a pay off loan is....... but I do know what it is to pay off a loan.Could mean pay your loan off.orPay the principle balance in full. They will usually deduct some of the finance charge if the loan is paid off early.Commonly found in:*charged off accounts*repossession accounts*complete loss accounts paid off by insurances
How do you clear a lien on a car when the loan was charged off so that you can register the vehicle and retrieve it from the impound?
Other than Paying off the loan, you DONT. Charge-off is an accounting term to explain why the lender didnt make any profit on the loan. As long as the vehicle is collateral for a loan, you dont get clear title.
