Over the Hill with a Derog *Advice*

[SoCalifornia]

I am now waist deep with one of two derogatory's. Officially 4 years have passed since it was sent to a collector, but this is one of two that I am not at fault for. It was an apartment situation, however, I will spare the boring details since it really doesn't matter at this point. Unfortunately tho, my wife shares this on her report as well. So she brings up the option of contacting the collector and negotiating. Being the more self-educated on debt and credit and all it entails, I agree at first thinking, maybe I should contact and negotiate. Who knows? Perhaps I can pitch 25% and have them swinging. Require agreement, pay to delete, etc, etc. Sounds great right?

Well, we are moving soon and I want our scores to be as squeaky as they currently can be in a few months, to make relocation that much smoother. I have been working on it for a year and a half now. But, I know that derogs are a process and simply acknowledging the debt could be a questionable move at best.

My question to you guys... Being more than 50% through the wait and drop cycle, what is the wiser hand to play? Contact these fools, acknowledge the debt and attempt negotiations OR let it ride and turn a blind eye til the score bump in three years?

I'm on the fence.

[RobertEG]

I would not specifically acknowledge the legitimacy of the debt.

I would contact them and state that you are willing to negotiate simply to resolve the issue.

If your negotiation position is an offer to pay in exchange for their agreement to delete their reported collection and they accept, you obtain both elimination of any debt and removal of the collection from your credit report, and thus from scoring.

I would begin by making a PFD offer.  It can be for whatever amount you deem appropriate.

[SoCalifornia]

Copy that. And thanks! I'm still apprehensive about contacting them. It won't fall off for three years, but we hope to apply for a home loan in two. I'm fairly confident if I could have it removed, it would be a generous score bump.

[Anonymous]

do not call them to negotiate do not pay them. Check your DM 

[Anonymous]

Robert gave you wise counsel.

One thing not mentioned: when is SoL? Surely your leverage, and thus amount of offer, will be affected knowing this date.

[SoCalifornia]

@James_A

I agree with his advice. At this point, I believe that is the path to follow. SoL is 5 years, but that just protects me from any other AA. I want to be done with this, especially since it's hurting both our reports over an unfair action.