“Charged Off Accounts on a Credit Report Doesn’t Mean You Don’t Owe the Money”

“Charged Off Accounts on a Credit Report Doesn’t Mean You Don’t Owe the Money”




I actually got a call from a prospective borrower who was referred by his Realtor who told me all of his credit is now perfect as the various creditors have charged off all the outstanding debts on his credit report. Seriously?


I asked him what he has on his credit report that is current and paid as agreed. He told me that he doesn’t have anything any longer because he doesn’t want to give anyone his social security number as he doesn’t trust any of “them”. I asked him who the “them” was and he told me the credit card companies.


I let him know that I couldn’t help him and that I didn’t have a lender that would be willing to work with him as he didn’t have any positive credit and was sitting with a bunch of collections. “CLICK”


I don’t think he liked what I had to say, but regardless I called the Realtor and let her know that I would not be working with her client. She told me that the kid needs someone to give him a break. I asked her if she was willing to loan him enough money to buy a home. She let me know that she wasn’t in the business to lend money.


It is sad that some folks are actually out there thinking that all the charge off accounts on their credit report means they don’t owe the money. This is not the case at all.


Image courtesy of stuartmiles/freedigitalphotos.net

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



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Comment balloon 28 commentsJoe Petrowsky • November 02 2015 11:18AM


Good morning Joe. Funny how some think they are entitled to a free ride! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) about 5 years ago

I think the term "charged off" is a misnomer and has some people believing that means "disappeared."

Posted by Sally K. & David L. Hanson, WI Real Estate Agents - Luxury - Divorce (EXP Realty 414-525-0563) about 5 years ago

Hi Joe.  It sounds like this person has a bit more of an attitude as well and would be difficult to work with.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) about 5 years ago

I had a person once who even tried to open up a saving account.  Her credit was so bad the bank refused to open it up.  She had judgments against her and the money would have disappeared as fast as it hit the account.  Sadly it was my daughter...  BTW she's still at it..  Some things just don't change.

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) about 5 years ago

Good morning, Joe... I just loved how the agent thought you should extend yourself to someone who's not credit worthy and doesn't seem willing to take the steps necessary to be so!

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Realty) about 5 years ago

Leave it to you to tell them how it works. Oh sure, give the kid a break...at whose cost???

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Home and Condo Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) about 5 years ago

I was surprised at reading the agent's comment. There are ways for the kid to start on improving his credit . 

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 5 years ago

Good morning Joe,

As soon as her own money became involved; funny hoe she started back pedaling.

Make yourself a great day.

Posted by Raymond E. Camp, Licensed Real Estate Salesperson Greater Rochester (Howard Hanna Real Estate Services) about 5 years ago

Hi Joe.  What a mental midget.  The best thing that could happen to you was for him to hang up.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) about 5 years ago

The kid doesn't need a break. He needs a plan to take care of his debts and slowly rebuild his credit. 

Posted by Kat Palmiotti, The House Kat (406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty) about 5 years ago

He is getting exactly what is needed..  If he's not going to try to pay his debts, then he should not be loaned any money.  

Posted by 1~Judi Barrett, BS Ed, Integrity Real Estate Services -IDABEL OK (Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745) about 5 years ago

Oh yes Joe, I click too on these buyers...they need to get real and take responsibility for their spending habits.  The rest of us work and pay our bills.

Posted by Ginny Gorman, Homes for Sale in Southern RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) about 5 years ago

Good morning Joe. What a bizarre story. Funny how there are always folks who believe they know better.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) about 5 years ago

Sounds like the realtor and the client are a perfect combo.....both clueless.

Posted by Roger D. Mucci, Lets shake things up at your home today! (Shaken...with a Twist 216.633.2092) about 5 years ago

Good morning Joe.  This story did not sound all that much out of the ordinary until you threw in the Realtor.  Oh man.  Make it a great day Joe.  Mark

Posted by Mark Don McInnes, Sandpoint, North Idaho Real Estate - 208-255.6227 about 5 years ago

Joe, I would have liked asking the Realty agent involved if she would lend him a couple hundred to have his electricity turned back on, or even spot him a twenty for something to eat.  When she said no in each case, I would have told her that her trust mirrored that of my investors.  She stands to make about three times as much as you.  As an MLO, I was always amazed at how much ignorance could wear that blue 'R' on ilthe lapel and call themselves knowledgeable.


Fellow REALTORS® need to understand that when your mortgage shop gets a loan to the closing table and funded, the shop makes about what the Listing or Selling agent makes on the deal +/-; yet your company bears the risk of having to buy that loan back from the investor when the buyer fails to make the payment.  Not for 3% but 100% of the loan amount.  It will require revenues from about thirty other deals to purchase that loan where agent and buyer were each so uninformed as to think the guy is credit worthy.  Both should run for Congress on the Democrat ticket.  Now, everyone should have a greater appreciation for the term CREDIT.  CREDIT suggests that one has demonstrated sufficient Trustworthiness for a lender to RISK making them alone.


It is one thing to fall on hard times and have difficulty meeting ones obligation; but it is far different to think (1) you do not need to repay an obligation, and (2) to think I do not have an obligation to repay.  I hope some deadbeat dad read this as well.

Posted by Fred Cope, Looking For Homes With A Smile (Reliant Realty in Nashville, TN) about 5 years ago

Joe Petrowsky it sounds like he didn't want top borrow money, he wanted a gift. You need to tell him you aren't Santa.

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) about 5 years ago


What a sad case.  I don't understand why the real estate agent took him on in the first place.  A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) about 5 years ago

What planet did this guy beam down from?  Sounds like he got some bad advice along the way.  Wise decision on your part.  NEXT!

Posted by Belinda Spillman, Colorado Living! (Aspen Lane Real Estate Colorful Colorado) about 5 years ago

I hear you on this I get this often as well???

Charged off means you DIDNT pay not that you dont owe good grief?!?>!?!?!

Posted by David Shamansky, Creative, Aggressive & 560 FICO - OK, Colorado Mtg (US Mortgages - David Shamansky) about 5 years ago

Joe - It is sad.  The kid needs to get on track with is finances and goals.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) about 5 years ago

Joe, yep, next.  I am sure someone would give him a break if he honored his commitments and paid the bills he is obligated to pay.  I love it when people are generous with other people's money.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 5 years ago

Another failure of our society to teach our children responsibility and accountability.   She says he needs someone to give him a break.   I disagree, Joe Petrowsky;  he needs someone to give him an education in life. 

Posted by DEANNA C. SMITH CERTIFIED MOBILE NOTARY, Highest Ranked Certified Mobile Notary in Virginia (Certified Mobile Notary Signing Agent) about 5 years ago


What you told the caller about their credit is right on point . . . . It's just that some people don't want to hear it.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 5 years ago

Some people are beyond help. I get the click, see ya.

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) about 5 years ago

I am amazed that people think they shouldn't have to pay it back or at least work it out. These are the kind of folks that are ready to buy at the drop of the hat.

Posted by Debbie Reynolds, C21 Platinum Properties, The Dedicated Clarksville TN Realtor-(931)320-6730 (Platinum Properties- (931)771-9070) about 5 years ago

Hi Joe -- ahh, you mean there is no FREE money?  There goes that plan.

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 about 5 years ago

Maybe someday this 'kid' will wake up and get a clue. 

Posted by Debbie Laity, Your Real Estate Resource for Delta County, CO (Cedaredge Land Company) about 5 years ago