I have been fightng with Asset Acceptance on a disputed item from Bank of America for a few years now. I am in the process of buying a house and my dispute came up. How much do you think they would be willing to settle for to end the collection? 50% , 60% 25%? I don't want to settle but I don't want anything to get in the way of my loan. Any advice?
Its from 2008, supposedly Bank of America. They have a collection on me but I dispute the existence. However I just want it gone. I just don't want to pay the full amount.
If you dispute the existence of the debt itself, have you sent formal disputes?
If the OC has reported, you can file a direct dispute with them.
If only the debt collector is reporting, then you can file a direct dispute with them.
In either event, the furnisher would be required to conduct an investigation, and respond as to whether they have basis for conclduing the debt is valid.
If they verify, they are not required to provide documentation or "prove" the legitimacy, and you would have a concluded dispute.
So yuo remain wth a disputed debt.
You can chose to pay, and thus close the matter, or you can pursue legal action to get a finding of invalidity of the debt.
So that leaves the issue of what your prospective lendor is requiring regarding the unpaid debt.
Are they requiring only that you pay, or that it be deleted from your CR?
If CR deletion is required, then you can pursue a PFD offer. I would assume that chances of their acceptance of CR deletion might increase with the amount of your offer.
If only the issue of getting the debt satisified is affecting your loan, then continuing to contest the debt before paying wont get you there.
Your negotiations for a settlement may take time. How low an offer to make, and thus how much back and forth may be required in settlement negotiations, might depend upon how soon you must get the debt satisfied.
How time critical is resoltion of the debt in your current loan application process?
Bank of America actually sent me 2 check for overpayment but I can't take chances of delaying my pre appoval for my loan as terms from my builder is to have the pre approval letter withing 40 days of contract
As for the terms of your offer of settlement, how old is the debt, how much is it?
The best thing would be to have it removed from your credit report. If the TL hasn't updated in a while, anything can cause it to update and drop your score.
Is the CA the only one reporting?