They are willing to accept <$3000 for a loan amount of $35,000?
That is amazing. And you have these offers in writing?
Location: Atlanta, GA
My husband took a HELOC in 2005 for $35K from Chase and only paid the interest until 2015 when the principal was due and couldn’t afford to pay. The loan was charged off in December 2015.
Currently, the loan is reported as chargeD off on all 3 credit bureaus.
Yesterday, received an offer from Chase to with a few different options:
1. Pay lump sum payment of $2478, lien will be removed and credit bureaus will be updated as account resolved for less than the full balance.
2. Pay $454 for 6 months for total of $2724, lien will be removed and credit bureaus will be updated as account resolved for less than the full balance.
3. Pay $248 for 12 months for a total of $2976,
lien will be removed and credit bureaus will be updated as account resolved for less than the full balance.
4. Pay the full balance of $34, 332, lien will be removed and loan will be updated as paid in full.
We are leaning towards option 1 which is an affordable settlement, however the settled part scares me.
Since the loan was charged off in 2015, does this mean we will restart the 7 year clock until the derogatory entry is removed? As of right now, hoping it will get deleted by December 2022.
I would appreciate any help you can provide.
First, I agree with everyone else, this is awesome!
Second, no, it will not restart the clock because you’re agreeing to settle the loan. I agree with choosing option 1 because you dont want to set up a payment arrangement, something happens, then you default.
Finally, IDK, but I wonder if this means you’ll get a 1099. Hopefully someone can answer this and if yes, for how much?
I had a charge off from 2011 (not a Heloc) and I just got my 1099 (in Feb 2019) to file for 2018 taxes March 2019. It had fallen off my report around Oct. last year. So I guess you can get a 1099 anytime?