Settle with old apartment debt or pay in full?

[Anonymous]

Hi, everyone,

I ran into some major financial problems back in 2012, and gave my apartment management the required 2 months' notice before vacating.  I paid the first month in full, but I had to leave abruptly before the second month, and that month was never paid.  The bill was $813 and was sent to Fair Collections & Outsourcing. 

I currently live as an occupant of my boyfriend's apartment (the lease is in his name) and have been for several years.  We are looking to move into a larger apartment elsewhere, but to do that, I am required to also be listed as financially obligated on a future lease as in the state of Tennessee, we generally have to make 3x the rent monthly, and he is just under that by himself, so my income is necessary. 

Despite the fact that this debt will fall of my report in 2.5 years, it appears to be a very general rule here that if we owe any money to any past apartment that we have leased, it will result in an automatic denial in leasing a place to us, whether or not we want to pay a larger deposit.  Fair Collections & Outsourcing has offered me a deal to settle at $244. 

My question is, will it look better if I pay the $813 in full, or should settling take care of it since I will no longer 'owe' any money to a past apartment?  I've done a lot of research on Fair Collections & Outsourcing, and they appear to be one of the toughest companies out there, and a Pay-For-Delete does not appear to be an option.  I just don't want to settle for $244 and still be in this same situation, unable to put my name on a lease because I didn't pay the full $813. 

If anyone has any experience with this, or any advice, I would greatly appreciate your help. 

Thanks!

[Anonymous]

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@Anonymous wrote:

Hi, everyone,

I ran into some major financial problems back in 2012, and gave my apartment management the required 2 months' notice before vacating.  I paid the first month in full, but I had to leave abruptly before the second month, and that month was never paid.  The bill was $813 and was sent to Fair Collections & Outsourcing. 

I currently live as an occupant of my boyfriend's apartment (the lease is in his name) and have been for several years.  We are looking to move into a larger apartment elsewhere, but to do that, I am required to also be listed as financially obligated on a future lease as in the state of Tennessee, we generally have to make 3x the rent monthly, and he is just under that by himself, so my income is necessary. 

Despite the fact that this debt will fall of my report in 2.5 years, it appears to be a very general rule here that if we owe any money to any past apartment that we have leased, it will result in an automatic denial in leasing a place to us, whether or not we want to pay a larger deposit.  Fair Collections & Outsourcing has offered me a deal to settle at $244. 

My question is, will it look better if I pay the $813 in full, or should settling take care of it since I will no longer 'owe' any money to a past apartment?  I've done a lot of research on Fair Collections & Outsourcing, and they appear to be one of the toughest companies out there, and a Pay-For-Delete does not appear to be an option.  I just don't want to settle for $244 and still be in this same situation, unable to put my name on a lease because I didn't pay the full $813. 

If anyone has any experience with this, or any advice, I would greatly appreciate your help. 

Thanks!

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Obviously it will "look better". Ask the apartment management company you are going to be applying at, if "settled" vs "paid" will make a difference or not.

[Anonymous]

I appreciate your response.  The two complexes I am interested in both told me that they "believe" that settling would suffice, but I wouldn't know until I settled and then applied to rent there.  I was just wondering if anyone has been successful in renting a new apartment with a settled debt to an old apartment on their credit report?

[RobertEG]

Settled for less informs others that you have a history of not having paid the full debt that you obligated.

That is never a favorable comment, as if that pattern is repeated, the busness/creditor will take a loss in their dealings with you.

Hard to say if they will interpret your past history as a likely pattern in your future debt obligations, but it could certainly be a concern.