I am looking for assistance as to what to do with my second mortgage. My husband and I are going to be building a house in the next 6-12 months and I currently have a second mortgage that shows on my credit reports over 120 days past due. Nationstar owns the note and had sold the debt to Realtime Resolutions, who in turn sold it to Veripro. I owe roughly $34K and Realtime had offered a settlement of $5300 the week that they sold the debt to Veripro. I received the letter after it had been sold so I called Veripro and asked for them to match that settlement and I would send in a check immediately. After going back and forth with Veripro for months, they are offering me a settlement of $17K, which I cannot afford. What I am trying to figure out though is, what is the best route to go to least affect my credit?
When applying for a mortgage, will a settlement on a second mortgage prevent me from being able to get a new mortgage? Whatever settlement Veripro will take, they stated that they do not report to the credit bureaus, they will send me a letter stating that it has been settled for the full amount and I am to call the bureaus to update the status. Is this true? I have heard that settlements will show as either a short sale or a foreclosure?
If I start paying the monthly payment again and it brings me current but I show 48 months being late, will that prevent me from obtaining a mortgage? What would be the best option here? We want to be able to use my income on the new house but my credit score is too low because of this. The options I have now are #1 – settle for less than full amount #2 – start making payments again, showing 48 months late payments but account will be current #3 – debt reduction plan, making payments, showing 48 months late and after 12 months probation, the total amount will be reduced. The person I spoke to stated that a settlement would be the best option (if I can get them to lower the amount), I just need to make sure this will not prohibit me from getting a mortgage in the next 6-12 months.
Also, since Nationstar owns the note, can I settle directly through them or does it have to go through Veripro since they are the current collection agency?
Any suggestions you can give are much appreciated!
