topic Re: settlement HELP in Rebuilding Your Credit

settlement HELP

Anonymous — Wed, 03 Jun 2009 01:01:59 GMT

Where can I find someone to call to make a settlement offer on a car loan that I owe $10,000 dollars on, but I would like to make a settlement offer for $4,500 and they wont take that amount they said they would need 80% of the $10,000 dollars to settle.

This bill is the only thing that's holding my credit score from going up to buy a home please help I need it

Re: settlement HELP

Anonymous — Wed, 03 Jun 2009 02:57:42 GMT

Not sure what you are asking?

Is this a car that has already been repossessed?? Are we talking about a judgment after a repo?

It sounds like you owe $10k, and you have made a settlement offer of $4.5k to settle the debt. Bottom line is that they do not have to accept anything less than the full amount to retire the debt. You can offer a higher amount, or hold out.

Be aware that the creditor may have other remedies to get their money, so tread carefully.

Re: settlement HELP

Anonymous — Wed, 03 Jun 2009 04:04:10 GMT

No it was not a repo. I give the car back willing,and the amount that is showing on my credit report is now showing it is a changed off account does that help any by offering a settlement.

Message Edited by lovesista on 06-02-2009 09:04 PM

Re: settlement HELP

Anonymous — Wed, 03 Jun 2009 08:06:00 GMT

With a debt of this size, I am sure most LO would require it to be paid or settled before proceeding with a mortgage.

However, I wouldn't expect much of an increase as installment util plays a small role in your util points. But, you may see some increase.

You can try to negotiate a settlement in writing, other than that, the main company would be who you'd call.

Re: settlement HELP

Anonymous — Thu, 04 Jun 2009 00:51:11 GMT

The bad thing is they never sold my account the credit union still has the account after 3 years would you no the reason they have not sold it yet.

Re: settlement HELP

Anonymous — Thu, 04 Jun 2009 00:52:33 GMT

lovesista wrote:
The bad thing is they never sold my account the credit union still has the account after 3 years would you no the reason they have not sold it yet.

Some do not ever sell.

It is probably actually better for your score/reports that they haven't sold. Then you'd have the OC's entry and a CA's entry.

Re: settlement HELP

AndySoCal — Thu, 04 Jun 2009 02:07:18 GMT

Just in case you are not aware settled account is considered derogatory. I would be very careful on what you do to resolve this account. Also, what is the current status of the account and when was it last reported ? Also, if the account is derogatory bring this account forward in time I.E. settling now can lower your score. I am also concerned about how a settled account on an auto loan will be interpreted by some underwriting systems. It could be interpreted as a paid repossession. I hope this helps

Re: settlement HELP

Anonymous — Thu, 04 Jun 2009 04:38:19 GMT

I would be very careful on what you do to resolve this account.

MY? Do you think I should get a pro to handle this kind of settlement offer

Also, what is the current status of the account and when was it last reported

Its a charged off account as of 5/1/07

It could be interpreted as a paid repossession

I give the car back willing and it don't show up as a repo on my credit report

The only reason Im trying to settle because I went to the bank and had my credit report looked at by a loan officer and she had told me I needed to make a settlement offer if I wanted to buy a home by sept of this year

PLEASE LET ME NO WHAT IS THE BEST WAY

Re: settlement HELP

Anonymous — Thu, 04 Jun 2009 14:13:52 GMT

It sounds to me like you are not trying to negotiate a PFD. That is good, because it sounds like it would be very difficult to get one.

Since you're just negotiating a settlement, the idea is to get them to take the least amount of money in order for the account to be "settled". So they said no. But what they really said is that $4,500 is not enough. Now you have to decide if you want to make another, higher offer.

They are not obligated to take what you offer. And making a partial payment without negotiating how it will be accepted could have some negative effects. So just keep making offers. And maybe they'll accept one.

They only alternative to getting them to settle for less than the full amount, is to actually pay the full amount.

You just have to decide how you want to handle this.

Re: settlement HELP

Anonymous — Thu, 04 Jun 2009 17:45:17 GMT

So today I talked to the company about the settlement offer and they said they will not go lower then $6,000and that I can pay them $5,000 now and make the rest of the balance in payments if I decide to pay that amount what are the steps I need to do first.

Re: settlement HELP

DI — Fri, 05 Jun 2009 01:07:40 GMT

Take that deal and get it in writing. Don't pay anything until you get agreement in writing. Get the complete terms of how the remaining amount to be paid. Have them state how many months they will allow you to pay off the remaining $1k. Also, if I were you, I would wait until I pay off the settlement agreement before getting a house.

Re: settlement HELP

AndySoCal — Fri, 05 Jun 2009 02:14:33 GMT

What the best way is I am not sure. But when this account reports again if you agree to some settlement terms your score could be lower. Because now the account will report in 2009 which will bring this negative account forward in time which could hurt your score. If your score(s) are borderline for the loan program you are trying to qualify for it could have a very negative effect. if your lender has access to the what if simulator from Credit Xpert have them run the scenerio on it which would give you an idea of the impact on your score.

Re: settlement HELP

Anonymous — Tue, 14 Jul 2009 22:03:47 GMT

I received a settlement offer from American express in May of this year and ignored the offer because I wasn't going to pay it. Now they have sold the account to a CA and they are not reporting on cr as of yet. I received their notice on July 6th so I still have time to DV them. I do not want my score to drop because of this new collection. Should I call Amex and ask for them to get back the account and make payment arrangements with them? Or should I just ask the CA to remove if I pay the settlement amount. But since they are not reporting could I prevent them from reporting if I make timely payments? What is the best solution considering that I will have to be on a payment plan?

Re: settlement HELP

Anonymous — Wed, 15 Jul 2009 01:35:12 GMT

Why fix something that's not broken if I were you I would apply for what ever you are trying to do before it dose show up.

Re: settlement HELP

RadioRob — Wed, 15 Jul 2009 05:31:01 GMT

Whatever you both agree to, get in writing. If you agree to 6k total with 5k up front and X per month for Y months till remaining 1K is paid off, that's just fine. Just make sure you have it in black and white that once you have paid a total of 6k that the debt will be considered satisfied.

In addition, you might also want to make sure you understand how they will report the debt on your credit report and that whatever way it is done is also spelled out in your agreement.

That way you have something to fall back on should they change their mind later or the person you are working with is fired/leaves and you end up dealing with someone who does not see eye to eye with you.

Always CYA.

Good luck!

Re: settlement HELP

Anonymous — Wed, 15 Jul 2009 13:31:45 GMT

I am trying to get house in November and do not want my score to drop. My score will be ran at closing at it will show that I don't have the credit to qualify, I am mailing the dv today to the CA. Hopefully they will take the whole 30 days to respond. However, I want Amex to take the debt back since they are still reporting it. Has anyone ever known the OC to get the debt back from the CA?