Do charge offs older than 2 years have to be paid off before being approved for a mortgage?
There are two schools of thought on this issue. One, that paying charge offs will show to any future creditors the consumer is acting in good faith by honoring financial obligations. If, however, the account has gone to collections the results may be just the opposite and could do more harm then good to a credit score. The consumer would need to decide what is the best action relating to their personal circumstances.