Last Debt... How should I contact the CA?

[MortgageMinded]

Here's the deal.   I have 1 debt left on my CR that is negative (after several years of cleaning things up I am at the last one).  

The debt is for $2200 for an old cell phone debt, unfortunately it was sold and I can't pay the OC.

The company has already confirmed the DV.   It is a time barred debt and will drop off my CR in about 15 months.  

I would like to purchase a home in March, but I have to take care of this bill --- somehow.  

So.... how should I approach the CA?    Should I send a certified letter or certified return receipt?  

What amount should I ask for it?   Do I have a chance at getting the creditor to do a PFD? 

Any help would be appreciated....

[Anonymous]

you have contacted the OC and they have verified the account has been sold, or you're assuming?

when does it drop off  CR?

if sold i would contact the CA and ask them if they would PFD, and what would be the settlement amount they are wiwlling to except if you where to PFD, then tell them you need it in writting, or feel them out. 

[Anonymous]

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@MortgageMinded wrote:

Here's the deal.   I have 1 debt left on my CR that is negative (after several years of cleaning things up I am at the last one).  

The debt is for $2200 for an old cell phone debt, unfortunately it was sold and I can't pay the OC.

The company has already confirmed the DV.   It is a time barred debt and will drop off my CR in about 15 months.  

I would like to purchase a home in March, but I have to take care of this bill --- somehow.  

So.... how should I approach the CA?    Should I send a certified letter or certified return receipt?  

What amount should I ask for it?   Do I have a chance at getting the creditor to do a PFD? 

Any help would be appreciated....

---

If its past the SOL for your state, its worth less than if it was still within.  Utilities probably come under a different SOL rule than CCs.

If you cant get a PFD, then a settlement should be enough to get you past the UW for a mortgage.  If you feel that a PFD isnt going to be possible, I would go straight for a low settlement.   I would think a PIF and then a GW later would be a small chance, unless you can search and find that others have been able to get it.

If you mention a mortgage in your future, they will fixate on full amount.

There's always a chance for a PFD but you will need to search for results from others.  You didnt list who the CA is so impossible to guess. 

If I were doing it, I would send a CMRRR letter with an offer for something like 50% or 40% and also ask for deletion.  I would put a reasonable but short time limit on it, like 7 days from receipt (post office should be able to tell you approximate delivery date) and hope for the best.  Also, insist on the debt being listed as fully satisfied after payment, and confirmation in writing on their letterhead prior to payment.  I never got a PFD, but I did get fully paid for less, and sometimes I got payment plans. 

When paying, you need to consider if you want to give them your bank account info, even if only at the bottom of your check.  Some people pay by money order, some by prepaid debit cards.  Whatever it is, make sure you can document it.   I had several accounts to settle and I maintained a separate checking account in a distant city with a small CU with only enough to pay that CA.  At one point, I had like two payments left on one account and I started paying a second one and it made me very nervous but it worked out Ok.   The longest payment plan I had was 24 months. 

If the CA is a smaller one not known to be an aggressive ogre,  you could call and feel them out, but they will press for immediate full payment. 

GL

[MortgageMinded]

Thanks for the advice....

I wasn't sure if I wanted to poke the bear. I am not comfy with giving a checking account number or credit card and would opt for a cashiers check or money order that was backed with certified funds.

I have read on this forum that the CA does PFD's I wasn't sure how to approach them, obviously, it appears I should send them a letter with an offer towards Payment in full.

I will keep you apprised. These CA have been sticklers as of late and I am sure they know I want to settle. The debt itself is over 5 years old and will fall off in 2 years. I am so close to getting a mortgage that i'd rather settle it as PIF and get rid of them then try to PIF and hope for a PFD.

Though I will try for a PFD first.