Should I settle Deficiency Balance (Auto Loan) and Credit Card?

[Anonymous]

Hello everyone, I'm new to the community! My scores currently sit at EQ8- 572, TU8 613, EX591. I currently have 2 credit union closed accounts with Delta Community Credit Union, for an auto loan deficiency balance of 11K (voluntary surrender) and credit card balance of 3K. Date of last payment or deliquence was 2017 so these would not fall off for a few years.  I am looking to negotiate settlements on both in hopes of increasing my scores for a mortgage (current Mortgage scores are EQ-642, TU-619, EX-625). Delta advised me to send in a formal settlement offer on the auto balance. The current offer on the card is 50% of the balance ($1500). Both of these items continue to report on my reports monthly, so there is a sense of urgency for me to clear this up. So:

1. Should I submit an offer on the auto loan balance or leave it be? If yes, how much? Will I see bump once it stop reporting monthly?

2. What type of an increase am I looking at settling the credit card? 

FYI - I have no other derogatories, I have one Cap One card with a $7 balance no lates. Also an AU on 2 AMEX and one Chase Freedom about 25% utilit. 

[OmarGB9]

It's hard to say what type of increase you'd get, if any, from settling those 2 derogs. That said, paying them would still help even if there's no immediate score boost because the monthly updates will stop and the utilization hit (at least on the CC) will stop, allowing your scores to recover over time. I would try to settle the auto loan, yes. As for how much, well it depends on how much you can afford/how low they will go. Start low of course, maybe around 30-45%? Just beware, depending on state law, if you were out of your state's SOL (statute of limitations, or the period during which they can sue for the full amount), negotiating with them and admitting to the debt may reset that SOL.

[ldkcivilservant]

Settling these debts might have tax implications too.

[House2021]

I settled two credit union credit cards with balances over $8000 balances, I settled each for only 20 percent of the total owed 80% discount), wouldn't hurt to try, mine were from 2016 and past SOL