topic Re: Collectively Bummed in General Credit Topics

Collectively Bummed

SoCalifornia — Sun, 10 Nov 2019 19:16:06 GMT

Fairly bummed out. I've been working hard for past three years cleaning up mine and the wife's credit. We have a targeted goal to finally purchase a home by applying for a mortgage. I was trying to get everything as squeaky clean as possible by 2022.

Alas, I have a two-year-old collection that has been reporting to TU, weighing down TU considerably. They found their way onto EX & EQ on November 1st. Thankfully there was no re-aging of the debt, but still, abit bummed out. I had considered trying to negotiate with the collector, but not until middle of next year. They jumped-the-gun on me.

At this point, I'm probably just going to grit-teeth and bear it- allow it to drop off. It's probably going to double our goal date, but I'm trying to put a positive spin on it, telling her and myself- we can just look at this as an opportunity to save more and be better prepared for the mortgage.

Anyway, just killing time while my daughter tries on clothes and sharing in passing.

Re: Collectively Bummed

KLEXH25 — Sun, 10 Nov 2019 21:11:31 GMT

I’m sorry the timing didn’t work out. Why not still negotiate middle of next year as you planned? As you mentioned, at least you’ll have time to save more.

Re: Collectively Bummed

FireMedic1 — Sun, 10 Nov 2019 23:48:08 GMT

Who is the collection agency and the OC?

Re: Collectively Bummed

SouthJamaica — Sun, 10 Nov 2019 23:53:13 GMT

@SoCalifornia wrote:
Fairly bummed out. I've been working hard for past three years cleaning up mine and the wife's credit. We have a targeted goal to finally purchase a home by applying for a mortgage. I was trying to get everything as squeaky clean as possible by 2022.

Alas, I have a two-year-old collection that has been reporting to TU, weighing down TU considerably. They found their way onto EX & EQ on November 1st. Thankfully there was no re-aging of the debt, but still, abit bummed out. I had considered trying to negotiate with the collector, but not until middle of next year. They jumped-the-gun on me.

At this point, I'm probably just going to grit-teeth and bear it- allow it to drop off. It's probably going to double our goal date, but I'm trying to put a positive spin on it, telling her and myself- we can just look at this as an opportunity to save more and be better prepared for the mortgage.

Anyway, just killing time while my daughter tries on clothes and sharing in passing.

It can't hurt for you to send verification letters to the bureaus. This sometimes accelerates the dropping of derogatory items.

Re: Collectively Bummed

SoCalifornia — Mon, 11 Nov 2019 02:56:42 GMT

@KLEXH25 wrote:
I’m sorry the timing didn’t work out. Why not still negotiate middle of next year as you planned? As you mentioned, at least you’ll have time to save more.

It could still very well happen. I have actually received a letter on, I think, three occasions where they offered a choice settlement. Those particular times weren't conveinent for me to take advantage of it. But, I have no doubt that these weren't ''one-time'' offers, even though they make effort in the language for it to seem that way. In fact, as the debt ages, I may even be able to make the offer instead. I've just read so many responses on people regretting that they actually worked with the collector. I guess it depends on the company and situation.

@FireMedic1 wrote:
Who is the collection agency and the OC?

The collection agency is National Credit Adjusters, a.k.a., NCA. The original creditor was a loan company known as RISE. Amount that is being attempted to collect is $4,390. Quite higher than the original loan. I have never made it a practice to take out loans, especially with such high interest rates. But, I was in a terrible spot at the time and they typically are able to take advantage of people in vulnerable moments. I regret it to the fullest. Yet, here we are.

@SouthJamaica wrote:
@SoCalifornia wrote:
Fairly bummed out. I've been working hard for past three years cleaning up mine and the wife's credit. We have a targeted goal to finally purchase a home by applying for a mortgage. I was trying to get everything as squeaky clean as possible by 2022.

Alas, I have a two-year-old collection that has been reporting to TU, weighing down TU considerably. They found their way onto EX & EQ on November 1st. Thankfully there was no re-aging of the debt, but still, abit bummed out. I had considered trying to negotiate with the collector, but not until middle of next year. They jumped-the-gun on me.

At this point, I'm probably just going to grit-teeth and bear it- allow it to drop off. It's probably going to double our goal date, but I'm trying to put a positive spin on it, telling her and myself- we can just look at this as an opportunity to save more and be better prepared for the mortgage.

Anyway, just killing time while my daughter tries on clothes and sharing in passing.
It can't hurt for you to send verification letters to the bureaus. This sometimes accelerates the dropping of derogatory items.

Certainly true at this point, since all three are now reporting. I believe the backlash is due to attempting to dispute it some time ago with TU. While I definitely do take responsibilty for the debt, it's not realistically re-payable at this moment. I wouldn't mind negotiating, since it belongs to me, but especially since I have plans for a mortgage down the short road. They clearly didn't like my attempt to dispute, which I believe caused the adverse action. It's tanking my scores though.

Re: Collectively Bummed

FireMedic1 — Mon, 11 Nov 2019 07:48:12 GMT

Not to put salt in the wound. But this looks like the dont dispute accurate info scenario. It will come back and bite you sometimes as it did. Sorry this isnt one of the nice CA that PFD or one of the companies that would work with you to get a settlement within reason. Thats why I asked. I did the same thing back in the early 90's after a divorce so I could move out fast. And went thru the same thing. Whatever you decide to do with it. Here's to being a homeowner quicker and some kind of faster relief from this pickle. Good Luck!

Re: Collectively Bummed

Anonymous — Mon, 11 Nov 2019 08:48:27 GMT

i don't know a lot about mortages but why can't you for example just get one now and refinance later when your scores are better? are they going to ask a significantly bigger downpayment because i don't think your monthly payments will be that much worse.

Re: Collectively Bummed

FireMedic1 — Mon, 11 Nov 2019 09:23:12 GMT

@AnonymousUW's for mortgages dont like active collections listed on a credit report. PIF is old stuff is doable. They like squeaky clean I dont owe anybody anything type of reports for better results of approvals.

Re: Collectively Bummed

Remedios — Tue, 12 Nov 2019 17:21:28 GMT

The problem with your plan is that every time collection updates, it will keep your score suppressed right where they are now
If it stops reporting for any period of time, then reports again, score drops significantly
Also, it wont stay with same collection agency for the next 5 years
Every time authority to collect debt is terminated and another CA reports, another score drop. Further you are from DOFD, bigger the drop will be
It's certainly up to you whether you want to pay or not, but if home is the end game, letting it sit there is not advisable
Potential lender will ask that you pay it, and when you do, guess what happens....another scoring drop right before your rate is determined
I'm not sure what the amount is, but it's less than thousands you stand to lose over a couple of decades because of the higher interest rate
I'd go back to the drawing table
Do not dispute legitimate debt because when it gets validated, another scoring drop.
Good luck with whatever you decide to do

Re: Collectively Bummed

SoCalifornia — Tue, 12 Nov 2019 17:08:45 GMT

@FireMedic1 wrote:
Not to put salt in the wound. But this looks like the dont dispute accurate info scenario. It will come back and bite you sometimes as it did. Sorry this isnt one of the nice CA that PFD or one of the companies that would work with you to get a settlement within reason. Thats why I asked. I did the same thing back in the early 90's after a divorce so I could move out fast. And went thru the same thing. Whatever you decide to do with it. Here's to being a homeowner quicker and some kind of faster relief from this pickle. Good Luck!

No worries, it is exactly that. It was instantly regretted- the loan and the act of disputing accurate info, but I've since moved past that and have learned my lesson (as I'm sure you understand). Now it's time to rectify, because I'm a ''nothing is the end-of-the-world" kind of guy.

@Remedios wrote:
The problem with your plan is that every time collection updates, it will keep your score suppressed right where they are now
If it stops reporting for any period of time, then reports again, score drops significantly
Also, it wont stay with same collection agency for the next 5 years
Every time authority to collect debt is terminated and another CA reports, another score drop. Further you are from DOFD, bigger the drop will be
It's certainly up to you whether you want to pay or not, but if home is the end game, letting it sit there is not advisable
Potential lender will ask that you pay it, and when you do, guess what happens....another scoring drop right before your rate is determined
I'm not sure what the amount is, but it's less than thousands you stand to lose over a couple of decades because if the higher interest rate
I'd go back to the drawing table
Do not dispute legitimate debt because when it gets validated, another scoring drop.
Good luck with whatever you decide to do

So, I don't have much experience with collectors. Which I suppose is a good thing. The only other was a collection placed on me ten years ago, which I wasn't at fault for and that particular agency was terrible to work with. On the flip side, with the debt that I do take responsibility for, this agency has actually not been disrespecful or belligerent. And since they've made several attempts to negotiate, I feel as though it can be worked out. The debt, Remmy, is $4390. And the most likely scenario (knowing myself) is that I will want to pay it off.

So. What if I were to pay the collector (negotiated or otherwise) with a zero % apr credit card. Would I acheive both having paid the debt and it reporting as such -and- placed myself in a payment situation, where I can actually manage and eliminate the debt on my own terms? Thus, in this instance, paying it over the course of a several months and having the debt in my control. Would this work at mopping up the mess at a quicker rate?

Hit me with your thoughts.

Re: Collectively Bummed

Remedios — Tue, 12 Nov 2019 17:19:52 GMT

What you want to do is call and ask if they would remove their reporting in exchange for payment. Some will, some wont. I dont know what that particular CA practices are, but it does not hurt to try. That will also depend on whether they outright bought the debt or are only collecting on behalf of OC.

That would be your first step. Give them a call, dont commit to anything. Come back and post the response when you get it

I could spell out all the possible case scenarios, but that gets too convoluted and it makes it appear more complicated than it really is.

One caveat, if they say they will remove reporting for payment, jump on it. See if they expect one time payment (entire amount/settlement) or if they will let you make payments. If they say they will remove, commit to it. Dont have to pay while on the phone but PFD is the best imaginable outcome

If not, we'll go from there.