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Valued Contributor
1111mel
Posts: 1,060
Registered: ‎02-13-2008

Re: Account Settled in Full & Scoring - Good or Bad?

Yes....what do you mean by "a negative gap on the account".  That is what GAP Insurance covers......  Some policies have a max pay out, but for the most part they have to pay every penny remaining after your insurance pays out their portion.
Mortgage Lenders Mid-Score 778 I AM A HOMEOWNER!!!!! 30 Year 5% Fixed Rate, closed on 3/18/09
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byjomat1
Posts: 2
Registered: ‎02-06-2013

Re: Account Settled in Full & Scoring - Good or Bad?

The original creditor realized they made an error...cancelled the original agreement...they initiated a new agreement...which they titled...Settlement Agreement!  The account was NEVER delinquent, in collections, or in default!  The 1st payment hadn't been made yet.  The creditor opted to do a "Settlement Agreement" payable in 12 installments...with NO interest.  They've indicated upon successful completion of payments...they will notate..."Settled-in-Full" on my credit profile?  I disagree...it should be "Paid-in-Full As Agreed"?  Thank you.

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llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Account Settled in Full & Scoring - Good or Bad?


byjomat1 wrote:

The original creditor realized they made an error...cancelled the original agreement...they initiated a new agreement...which they titled...Settlement Agreement!  The account was NEVER delinquent, in collections, or in default!  The 1st payment hadn't been made yet.  The creditor opted to do a "Settlement Agreement" payable in 12 installments...with NO interest.  They've indicated upon successful completion of payments...they will notate..."Settled-in-Full" on my credit profile?  I disagree...it should be "Paid-in-Full As Agreed"?  Thank you.


Did you sign the new agreement agreeing to that? I take it you received goods, services, or money because of their insistence of a new agreement?

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byjomat1
Posts: 2
Registered: ‎02-06-2013

Re: Account Settled in Full & Scoring - Good or Bad?

Yes, the new agreement was signed by ALL parties.  However, the loan was made prior to the "Settlement Agreement" being offered.  Thank you.

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Account Settled in Full & Scoring - Good or Bad?

If the new agreement was already signed, and it contained that verbage that they would mark the report as "settled-in-full", then there's not much you can do. The new agreement voids out the old. I'd pay it as promised and see how it reports. You can always see how it reports once it hits your CRs. If it does show, you can always look within the new agreement and see if it allows for a changing of terms if both parties agree. I'm sure they care a lot more about the money than they do about the reporting.


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