Does this make sense?

[sharriel]

I have 2 CAP1 accounts (1 for $1800 set to come off Jan 2015 and 1 for $1500 set to come off December 2014) .  They will not PFD at all.  They have offered me 50% settlements on both accounts.  I am not in position to PIF but I can pay 50% to settle.

Since these are going to fall off shortly, would it be in my best interest to settle and let them fall off?

I would like a mortgage within 2 years so won't it look better settled instead of unpaid?

[cqdealer711]

could always settle and then GW the EO office until they say yes  

[DaBears]

Settled or PIF alwys will be better than unpaid. It really depends on the underwriter if he will accept settled as to PIF. Did you pay the OC or a CA? 

[sharriel]

I haven't paid yet.  It is to the OC Capital 1...they have not sold it yet.

[guiness56]

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@DaBears wrote:

Settled or PIF alwys will be better than unpaid. It really depends on the underwriter if he will accept settled as to PIF. Did you pay the OC or a CA? 

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Once a debt is settled it is considered paid and the underwriter should not have a problem with that.  If he does I would get a different lender.

[sharriel]

OK, thanks! I will go ahead and settle...These are in marked as Charge-Offs...do You think if I settle, it will raise my score at all or would I have to wait for them to drop off to see an increase?

[guiness56]

If the CL and balance are reporting it should.

[cwwatts1202]

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@sharriel wrote:

OK, thanks! I will go ahead and settle...These are in marked as Charge-Offs...do You think if I settle, it will raise my score at all or would I have to wait for them to drop off to see an increase?

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When we settled my husbands FP CO CC they didn't report it as settled at first, they just reported it as a payment and his score jumped like 25 pts bc of his util going down, but once they reported it as settled/closed, he lost 30 pts... so you'll probably gain some pts if it's being factored into your util, but then lose some pts once it's closed. That was our experience anyway.

[guiness56]

I don't think he should have lost points for the settlement.  Are you absolutely sure nothing else happened at the same time.

[cwwatts1202]

Yes i'm sure. It reported closed/settled and shortly after he lost 30 points. Nothing else was done to his credit, no inquiries, nothing added, no new accts. etc. just this card closing. But i've read in these forums a drop in score is common when cards are closed.