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Hello, I am new to this forum and have a question about a private student loan that was charged off. The loan was with Wells Fargo, charged off July 2012 for $7,379. I am trying to apply for a mortgage in the next 6 months so I need to take care of this. I called WF before looking at the blogs on this site and learning about the possibility of a pay for delete letter (long shot I understand) I spoke with a represenative about settling the account for $1200, settle for less than amount owed. She said she had to speak with a supervisor and get back to me. In the meantime I started researching pay for delete letters and drafted one and sent it via certified mail with read receipt. The day they recieved the PFD letter, I recieved an email that they approved my $1200 settlement offer. Now I feel like I am in a bind. In the pay for delete letter I offered $2000 for them to delete it from my credit report.
My question is should I wait for a response from the PFD letter, or move forward and settle the account for the $1200. Please let me know if any other information is needed, and thank you in advance for any help with this.
@Anonymous wrote:Hello, I am new to this forum and have a question about a private student loan that was charged off. The loan was with Wells Fargo, charged off July 2012 for $7,379. I am trying to apply for a mortgage in the next 6 months so I need to take care of this. I called WF before looking at the blogs on this site and learning about the possibility of a pay for delete letter (long shot I understand) I spoke with a represenative about settling the account for $1200, settle for less than amount owed. She said she had to speak with a supervisor and get back to me. In the meantime I started researching pay for delete letters and drafted one and sent it via certified mail with read receipt. The day they recieved the PFD letter, I recieved an email that they approved my $1200 settlement offer. Now I feel like I am in a bind. In the pay for delete letter I offered $2000 for them to delete it from my credit report.
My question is should I wait for a response from the PFD letter, or move forward and settle the account for the $1200. Please let me know if any other information is needed, and thank you in advance for any help with this.
If you're looking to apply for a mortgage within a year, you really want it removed completely. A settled account will still show as a negative on your credit report and depending on your scores it could tank your chances at a mortgage approval.
If it were me, I'd call them and restate your position about wanting to get it deleted. They may not do it, I have never had a PFD work unless I paid in full. But it's worth a shot. You might get no better deal than that settlement, though. Just be aware. Good luck!
Thank you for the reply. I already applied for the MOrtgage and they ran my credit and was told I could get the loan today if this was settled. However, I have about 4 months get get my score up a few points to get a better rate. Current median score is 632. I am wondering if worst case scenerio, settling this account will end up dropping my scores. I aslo have applied for two secured credit cards that did not put a hard hit on my report. If I have to settle this acocunt and using these secured cards responsively for 4 months increase my scores?
@Anonymous wrote:Thank you for the reply. I already applied for the MOrtgage and they ran my credit and was told I could get the loan today if this was settled. However, I have about 4 months get get my score up a few points to get a better rate. Current median score is 632. I am wondering if worst case scenerio, settling this account will end up dropping my scores. I aslo have applied for two secured credit cards that did not put a hard hit on my report. If I have to settle this acocunt and using these secured cards responsively for 4 months increase my scores?
Truthfully, I would talk to the mortgage lender. They'd have better advice. Some lenders will want you to pay anything outstanding, some will be okay with letting it go, and it really varies. Responsible use of secured cards isn't bad but if those are reporting they'll show as a new-ish line of credit regardless of whether they were a hard pull on your report. That can have an affect, and it's almost impossible to say if 4 months is long enough for your score to rebound.