Hello,
My credit scores have rebounded tremendously since working the last two years on paying off all my debts. I have just one major debt that remains other than some family tax leins. The debt is a $30k second mortgage debt that has a last payment of 08/2011. The statute of limitations in the state the property exists is 5 years from date of last payment and it's 4 years in my current state. Just to be safe, I am waiting until September 1st to contact the debt owner, Ditech... just to be sure not to wake a sleeping giant. By my attorney's calculation they have about 45 days from today to file against me or they give up any right to sue going forward.
Many have given me advice that at the point the SOL is in place, I can offer a settlement for removal from credit report. Does anyone have a guideline or suggestion as to what I should offer being that otherwise I am waiting 18 months - 24 months for it to be removed from my credit reports as too old?
I was considering drafting a offer/letter from my attorney that stated I would offer 10% of the balance being that they cannot sue me for the debt and a judgment isn't possible. Is 10% a good starting number or is it too high or too low for an old second mortgage?
Any help would be appreciated. If all else fails, I'm just waiting 18-24 months depending on the CB to request removal.
Thanks in advance.
It's hard to say what the 10% offer would do for settlement. It depends on that lender and how they do business. It sounds like a low percentage, but you never know. Sticking close to your attorney in this process is a good idea.
Thanks for the feedback. When I called them a couple months ago, they did what you mentioned.... said in order to consider a settlement I would need to fill out a bunch of financials disclosing my assets, etc. It's a tough decision. Just 18 months from now I can ask for exclusion from TransUnion, 21 months from Experian, etc. I am not looking to buy a house until almost 3 years from now, so maybe letting my score suffer a little is okay. I know companies have to stick to principles... but if I knew a debt was time barred... I would certainly be willing to accept 10-15% vs. having the client ride it out and get nothing.
I tried this approach with Calvary Portfolio for 2 years on $12k worth of closed business credit card debt they had purchased. The debt was time barred and Even with one year left to go, I offered them $1200 (10%) to show paid in full and they refused. That logic to me just didn't make any business sense. 6 months later they started falling off my reports and now they are gone completely. They sent me a letter a month ago showing my balance and I just shook my head. Obviously they can attempt to collect on it indefinitely because its a debt... but the courts can't help them sue for a judgment and they can't put it on my credit report. Free money wasted.
Again, while I understand principles must be involved... I would still think that a smart debt buyer would have a scale during time barred situations where they know the clock is ticking on the impact the debt has... once its unenforceable by the courts... thats problem 1.... then as they know it approaches 7 years ... the settlement should get lower and lower... shrug
Thanks for the info. 30% of 30k is a a chunk of change for 18-24 months early impact on my scores.
@RobertEG wrote:One thing you DONT want to do is to send them financial disclosures prior to expiration of SOL.
That will give them almost unequivocal basis to determine, if they sue, whether there is blood in the stone for a subsequent writ of satisfaction of any judgment they might secure. Leave them guessing until SOL is expired.
AGREED! Thanks!
