Texas Auto Brokers Fraud - Ruined My Credit With False Charges conroe, Texas

 Bobby are you trying to get me banned from replying to the rebutts you and the Team do?????? You can't make me cry and names calling does not work, what is your next attack????

You need to be more upset at your "friend" who looks like they outright lied to you to get you to buy a car from him.

Texas Auto Brokers has me as still being late on $3583 worth of car from the one the insurance paid off.
- No..remember by your own admission earlier in your post the insurance did not pay off the entire balance.  It was your "friend" who said that if you bought a car from them that they would consider the balance paid in full.  So did you get anything from your "friend" to show proof of this?  Because if you only have his word, you will find that with his word and $2 you could buy a $2 cup of coffee.

As to the balance.  You didn't say what the unpaid balance was, but in 6 years it would be possible with additional interest and late fees that the balance has ballooned to $3583.

You could try to sue them under provisions of the Fair Credit Reporting Act(FCRA) but unless you have proof of this agreement that says your original amount would be paid off.  You are basically "Up the Creek without a Paddle"

If tyhe dealer was supposed to pay it off as part of your new deal, it will be in the contract and enforceable.

Call a lawyer and sue if you need to

If its not in the contract you are stuck, Sorry.

I'm sorry that apparently you and your friend weren't aware of the relationship of your loan to your friend's dealership. Your friend didn't have the authority to cancel the remaining debt on your vehicle loan. Once the loan funds upon purchase, the dealership has no authority to change the note with a third party lender.
 
Your loan is a separate issue from the value of the car payoff. If you had owned the vehicle outright with no loan, then you would have received the insurance proceeds. However, you went to a third party lender to finance the vehicle. Unfortunately you were upside down in the vehicle loan as evidenced by the short payoff from your insurance company. It was your responsibility to pay it off. You can do so now and go back to your house lender's underwriter to explain the issue. That may or may not work with the lender. 

First, check to see if you have a judgment against you. If you do, you can generally negotiate the judgment payoff to a smaller amount, but not always. If there is a judgment you will want to get a written Satisfaction of Judgment when you pay it off and make sure its recorded in your county so this debt doesn't come back to harm you again.