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New Member
WhenPugsFly
Posts: 8
Registered: ‎04-11-2013
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Want to buy house, but owe Cavalry for 2007 repo

I’m fairly new here, but have been reading the forums for the past few days.  I think I’ve gathered enough info to post so that my question makes sense.  I’m unsure of how much detail to include, so I apologize if this is rather lengthy.

 

My husband and I are trying to clean up our credit because we would like to buy a house, but aren’t in any rush.  We already have a home, but would like to find something with a lower mortgage (and yes, we’ve refinanced).

 

There are a few baddies that we need to take care of.  The biggest one that needs to be taken care of is with Cavalry Portfolio Services – not an easy CA to deal with it seems.

 

Here’s a little background:  Before we were married, my husband had bought a truck in 2005.  That same year he lost his job, along with a few hundred other workers, due to an overnight shutdown of the company he worked for.  Spring 2007 is when he could no longer make the payments, and the truck was repossessed.

 

The original loan was with Ford Motor Credit for about $13,500.   After the repo, he owed $4,306.  In June of 2008 he received an offer to settle for $1,722 from a CA (Pencro), then again in Jan. 2009 (Oxford Management Services.).  He did not have the money at the time to take advantage of the low amounts.  Which brings us to now…Cavalry Portfolio Services has it, and their requested payoff is $5,235.  Because it’s a secure debt, I don’t know how much wiggle room they’ll give us.  Although it seems likely the debt was purchased pennies on the dollar, especially since Cavalry is the 3rd CA to have it.

 

Here’s where I could use some feedback.  I’m thinking of sending a PFD to Cavalry, offering 30% of the original amount due, so $1,292.  I don’t expect to pay that amount, but need to start somewhere.  The PFD would be sent to someone different each week (every other week?) via snail mail, fax, & email, until we get a response.   I’ve seen a few names floating around the web, but am unsure of how to find out other names.  If anyone has suggestions of how to find out who to send the PFD’s to, it would be very helpful.  We don’t want to pay any more than 50% ($2,153).  Should we keep sending them a steady stream of PFD’s?  How often?  Weekly or every other week?  Is there a better way than requesting a PFD?

Regular Contributor
Asailorshort
Posts: 205
Registered: ‎06-04-2012
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Re: Want to buy house, but owe Cavalry for 2007 repo

PFD certainly seems reasonable & 30% seems reasonable given its age. However, whats the date of first delinquency (DOFD) on this loan? It should fall off your report in about a year.
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Mega Contributor
RobertEG
Posts: 17,828
Registered: ‎03-19-2007
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Re: Want to buy house, but owe Cavalry for 2007 repo

In my opinion, the first bridge to cross is whether you wish to rely upon credit report exclusion as a means to block the presence of the unpaid debt from knowledge by others.

 

If and when you app for a mortgage, if the lendor is aware of any unpaid, dlelinquent debt, that alone could be a show-stopper.

Exclusion of the collection will remove knowledge based on a simple pull of your CR,

 

However, there are a myriad of other ways a potential creditor could still become aware of unpaid, delinquent debt.

Has the OC reported on the original debt, and if so, are they still reporting an unpaid balance?

When asked in a morrtgage app if you have any unpaid delinquent debt, are you willing to answer no based only on current CR exclusion of the collection?

 

If you have time to pursue the PFD route, then that might obtain both satisfaction of the debt and earlier CR deletion, thus freeing you to begin mortgage app at any time.

However, if they dont accept, then you must face the answer to the above, as paying may not be an option. 

Are you planning to not pay if you cant get terms less than a PFD or a settlement for less?  A big issue controlling how you pursue your negotiations.

 

Regular Contributor
Hevj1119
Posts: 180
Registered: ‎04-06-2013
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Re: Want to buy house, but owe Cavalry for 2007 repo

[ Edited ]

I don't have any good insight other than I just settled the same kind of debt (little over 4K, a car bought in 2005, repo'd in 2007) for 30%.  I called first and offered $1000, which was closer to 22%.   They counter offered 30%.  I spent days trying to finagle them down even lower but they were pretty set on 30%. Stand strong!  

 

Definitely find out the DOFD.  It might be falling off earlier than you think - although you'll still probably be advised to take care of it if you are planning to apply for a mortgage loan greater than $150,000.  Even though the truck was repo'd in 2007, the DoFD on mine was 06/2006 so it's going to age off in September.

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New Member
WhenPugsFly
Posts: 8
Registered: ‎04-11-2013
0

Re: Want to buy house, but owe Cavalry for 2007 repo

[ Edited ]

Asailorshort wrote:
PFD certainly seems reasonable & 30% seems reasonable given its age. However, whats the date of first delinquency (DOFD) on this loan? It should fall off your report in about a year.

The DOFD was in 2006; repo'd in 2007.  Although it may be due to drop off in a year (or so), it's more likely that we'll try for a PFD. 

New Member
WhenPugsFly
Posts: 8
Registered: ‎04-11-2013
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Re: Want to buy house, but owe Cavalry for 2007 repo

The OC is no longer reporting on the unpaid balance; it’s being handled by a CA (Cavalry Portfolio).  They are the ones reporting the unpaid balance plus their fees.  The remaining balance was $4,306; with fees, it’s $5,235.  As mentioned in my initial post, Cavalry is the 3rd CA to have the loan, so I’m thinking they paid something like 5 cents on the dollar.

 

It may not have been the correct way to go about things, but my husband had already talked to a loan officer at a mortgage company to see if we qualified for loan.  (This was before I found myfico.com and learned a few things.)  The loan officer pulled our CR.  We qualify for a $149K loan, but my husband was told that we need to make a few things “disappear” from our CR if we wanted to get a better interest rate.

 

When I learned what needed to come off of our CR, that’s when I started doing research to find out how to get these things taken care of, and that’s when I came across the boards at myfico.com.   I hope the CR pull didn’t hurt our situation since I just read somewhere “…once mortgage inquiries start hitting your credit reports, they (CA’s) will know.”  Is this even possible?  Can CA’s pull a person’s CR or even be notified of any activity on the report?  This may not even be possible for the CA’s to do, but we don’t want to tip Cavalry off since they may expect payment in full if they know we’re house shopping. 

 

We’re not in a huge rush to get into a house, but need to get the ball rolling for when we are ready to do some serious house shopping.

New Member
WhenPugsFly
Posts: 8
Registered: ‎04-11-2013
0

Re: Want to buy house, but owe Cavalry for 2007 repo

[ Edited ]

The unpaid balance is being handled by a CA (Cavalry). As mentioned earlier, they're the 3rd CA to have the loan, so I’m thinking they paid something like 5 cents on the dollar.

 

It may not have been the correct way, but my husband already talked to a loan officer at a mortgage company to see if we qualified for loan. (This was before I found myfico.com and learned a few things.) The loan officer pulled our CR. We qualify for a $149K loan, but my husband was told we need to make a few things “disappear” from our CR if we wanted to get a better interest rate.  When I learned what needed to come off of our CR, that’s when I started researching about how to get these things taken care of, which is how I came across myfico.com.

 

I hope the CR pull didn’t hurt our situation. since I just read somewhere “…once mortgage inquiries start hitting your credit reports, they (CA’s) will know.” Is this  possible? Can CA’s pull a person’s CR / be notified of activity on the report? This may not be possible, but we don’t want to tip the CA off since they may expect payment in full if they know we’re house shopping.

 

We’re not in a huge rush to get into a house, but need to get the ball rolling for when we're ready to do some serious house shopping.

 

 

Edit: Clarification - Apparently, I misunderstood what I was told about qualifying for a loan.  IF we take care of the baddies, esp. Cavalry, THEN we would qualify for a $149K loan. 

New Member
WhenPugsFly
Posts: 8
Registered: ‎04-11-2013
0

Re: Want to buy house, but owe Cavalry for 2007 repo

sorry for the double post - :smileyembarrassed:

New Member
WhenPugsFly
Posts: 8
Registered: ‎04-11-2013
0

Re: Want to buy house, but owe Cavalry for 2007 repo


Hevj1119 wrote:

I don't have any good insight other than I just settled the same kind of debt (little over 4K, a car bought in 2005, repo'd in 2007) for 30%.  I called first and offered $1000, which was closer to 22%.   They counter offered 30%.  I spent days trying to finagle them down even lower but they were pretty set on 30%. Stand strong!  

 

Definitely find out the DOFD.  It might be falling off earlier than you think - although you'll still probably be advised to take care of it if you are planning to apply for a mortgage loan greater than $150,000.  Even though the truck was repo'd in 2007, the DoFD on mine was 06/2006 so it's going to age off in September.


I’ve been seeing posts stating that CA’s won’t do a PFT on secure debts, so I’m glad to hear someone else settled a repo debt.  :smileyvery-happy:

 

Just to stay on the safe side, we’re going to deal with these baddies instead of letting them fall off.  Don’t want to have any surprises down the road.

New Member
robshope
Posts: 2
Registered: ‎04-28-2013
0

Re: Want to buy house, but owe Cavalry for 2007 repo

FWIW, the deficiency balance AFTER the car has been repossessed and sold becomes unsecured debt. 


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