After reading a ton of posts and speaking to a few attorneys, I still need some help and direction. Here are the facts:
FIA/BofA default date - 4/2009
Charge off - 9/30/2009
Balance - $8,551
Past Due Owing on CR - $1,356
1099-C issued for $7,500 on 12/12
Currently live in CO but BofA has previous TX address
I am trying to buy a home and the past due appears to be the issue. I have read and spoken to attorneys and it appears the charge off language/law is not clear and they still are able to report on CR. I spoke with creditor regarding settlement and this is my issue and concerns. They offered me a settlement of 40%, which I would have taken. They would not agree to let me see the offering in writting before I accepted. I then spoke a with a supervisor and stated that I needed the account settled in full showing a $0 balance. She stated the account would be settled but the remaining balance would show on CR. She stated I would not be obligated to pay this. I stated since the debt is charged off and pursuant to my conversation with THEM that I'm not obligated to pay this now as stated and the debt was cancelled (must be past SOL?), which she agreed with. I then asked if this settlement was more or less just paying down balance, which they would not give straight answer. I received letter on settlement showing the account would be settled BUT nothing states the account would be settled in full. I called back the next day and THEY retracted the offer and want full payment.
Questions:
- Does a settlement differ from fully satisfied? Can they legally pursue the remaining balance if not specified? They do not appear to be interested in offering anyhitng other than standard form settlement letter.
- My main concern....as I understand this now.....involves removing the past due balance. My credit score was around 700 (before settling another account). Would settled remove past due balance?
- Can I pay the past due balance and would they be obligated to remove this amount of $1,395 from CR? BofA said no and they can allocate as they wish.
- Do I leave the address in TX? I beleive the SOL in CO is 6 yrs vs TX at 4 yrs?
- I spoke with both CRA's (transunion removed last year per my request) and they agreed the balance should be $0...and sending BofA 1099-C with verification and balance and past due at $0. I don't believe I will get cooperation on this though. Can I dispute the past due only with CRA's? I've asked for past due verifiaction on phone from BofA abd they only sent 11/2009 CC statement BUT it does show a $0 balance from charge off. Send a validation letter for past due only?
- Charge off 9/30/2009. 1099-C issued on 12/31/12. I already paid 1099 but did they issue after the required 2 yr mark? Leverage to negotiate terms?
- Any luck with a BofA removing the trade line from CR? I'm in a tough position of if I pay it will lower score and not qualify for home. If I wait and settle once I go under contract, they could not show $0 balance.
Thanks for the input!!!
