Hey all,
I have posted here a couple times about a voluntary repossession I have been dealing with. To recap it was because I moved to Chicago with my now wife, and started school, which effectively cut my income by 3/4. I’m a nursing student and my wife is a new attorney, so hopefully we will be more financially stable someday haha.
Anyways, the repossession occurred in Iowa, where the SOL is 10 years. Knowing we want to buy here in Chicago in 5 years, I knew I needed to tackle this sooner than later. The credit union I gave the car back to was adding $100 interest charge every month, which obviously has been suppressing my score. The current balance on my reports is $9700.
After the unfortunate passing of a family member, I came in to $5,000, and my wife and I agreed it would be best to call the credit union and offer a settlement. They agreed, but explicitly said it would be considered settled for less than the balance owed. I know in a manual underwriting situation this is less than favorable, but by the time we want to buy in 5 years this will be off my reports anyways as the DOFD is in 2015.
Long story short I feel like a winner with being able to settle for almost 50% of the balance owed, and finally get this to stop reporting monthly as this is my last big derog on my reports! Yay!
Thanks to this forum I feel confident about sending goodwill letters and again if that doesn’t work, it will be off my reports in a few years anyways.
Thank you for letting me share my excitement this morning.
