01-31-2013 12:14 PM
01-31-2013 01:32 PM
Sure, you can ask them for a PFD.
Is it a 3rd party CA or in house OC collection?
Settled or paid in full looks the same to FICO and won't hurt your score. Where it could cause a problem is on manual review.
You could ask them if you settled to report as paid in full if they won't do a PFD.
01-31-2013 01:34 PM
You have a golden carrot to dangle at them and attempt a modification of your existing agreement.
I would offer them full payment now in exchange for agreement to delete from your CR.
Satisfaction of the debt prior to mortgage app process is definately a plus, with or without CR deletion, as it is hard to predict what requirements your prospective mortgage lendor might impose. They may, even though you are under a payment plan and are making satisfactory payments, want the debt satsified in full prior to loan approval.
If you can also achiever CR deletion, any part that your score may play in the mortgage app process, such as getting you a lower rate, will be a plus.
If they accept a PFD, I dont see that you need any letter of zero balance, as it will no longer be on your CR, and thus not somethng the mortgage lendor will even be aware of.
That is the best of all options.
01-31-2013 01:45 PM
01-31-2013 03:14 PM
01-31-2013 03:50 PM
01-31-2013 07:52 PM
Congrats! Be on the watch for the 1099-C on the $3,000 for next years taxes.
02-01-2013 12:32 AM
When you do get the 1099c, check out your obligation to pay before simply paying.
If you can show insolvency, meaning your debts, including the cancelled debt, exceed your assets, you have no obligation to pay taxes on the cancelled debt.
02-02-2013 12:56 PM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.