So confused

[Anonymous]

I have a 2011 f150 from cap1.Still owe 21,000.(yikes) I fell behind on the payments. It shows as a charge off on my report even though I still have the vehicle. Here's my confusion... I was told by cap1 they will settle for 10,500 if it appraised for that much. Carmax appraised for that. Cap 1 will forgive the other 10k if I sell to carmax and I'm completely done with the loan. My report will say paid in full for lesser value. Has anyone ever heard of this? Will not show as a repo on my report. Should I?????? Help!!!!!!!!

[Anonymous]

2 parts, one get that in writing...second if they forgive debt, you have to pay taxes on that and you will get a 1099-C cancellation of debt. 

[Anonymous]

First, I have heard of, and a long time ago did myself, negotiate a "paid in full for lesser amount" on a collections account.  It did not show as a charge-off or a collection, but did have the paid in full for lesser amount language on the report.  

Second, I agree with @navyitaly, GET IT IN WRITING before executing.  

[Anonymous]

Welcome to the forums!

I have dealt with this on many individual's reports. REPO is bad on anything. It shows failure, and not paying the debt. As mentioned by other users get this in writing or make sure the calls are recorded. Capital One wants to work with you to prevent them from hiring a repo truck to come grab it.

It still will close the loan, and will report that it was paid on different terms. Some lenders may look at that but the big word here is PAID. Banks like to know they will get their money back. It will not remove the charge off but will make it look better.