Broken lease collections ruining my life!

Anonymous · ‎08-10-2015

Hi everyone!

I'm not sure what to do. I've been researching a ton about broken leases and collections and it all seems pretty hopeless to me unless a huge chunk of money just falls from the sky into my lap. I would like to buy a house in a year in a half when my scores are higher and I've had regular on time payments on multiple cards. Can you even buy a house with such a large amount in collections --- even if your score is in the high 600s?

However, I've got around $10,000 in collections, and $8500 of that is due to broken leases. Is my only option to wait until 2020 until they fall off? In Colorado the SOL is 7 years which puts me at 2020 and 2021 in fear of being sued. I obviously don't have that type of cash lying around. If I start a payment plan, I'm worried it will update and continually push the debt back. I think the numbers are hugely inflated and can send a DV letter and maybe settle if they'd agree to wayyyyyyyyy less but again, I'm worried about resetting the dates so that these debts show up as newer on my reports.

Feeling pretty hopeless right now. I've got the information for fixing my credit, I think, but just not the cash. And this $8500 in collections is really making me feel like anything else I'd do would be pointless. I just don't feel like I should have to pay for an entire year of rent when I didn't live there just because I lost my job. Any tips would be greatly appreciated!

RobertEG · ‎08-11-2015

Have you consulted an attorney regarding the legality of the broken lease charges vis-a-vis your rental contract and the regs in your state regarding the amount of your obligation?

The FDCPA, for example, explicity prevents a debt collector from attempting to collect any amount that is not specifically authorized in the agreement creating the debt or otherwise permitted by law. See FDCPA 808(1).

Sending a DV most likely wont settle the matter.

First, a DV must be sent within 30 days after receipt of dunning notice to have any effect.

Second, even if timely, it does not compel a response. It only puts into place a cease collection bar until they choose to provide validation.

Third, validation is generally accepted as not requiring the debt collector to prove the debt, only to investigate and verify that they have adequate bassis to validate.

Anonymous · ‎08-11-2015

Paying a debt does not reset anything - EVER.

Anonymous · ‎08-11-2015

I'm wondering if you broke your lease, how long before they got someone else in the apartment. I don't think they can recoup from you if someone else moved in. Was the partment actually vacant for 1 year?

Anonymous · ‎08-12-2015

In Colorado you only have to pay for the months that the apartment was vacant. I have no idea how long the apartment was vacant for but I guarantee it wasn't a year. I just don't know how to go about proving that or how to get the amount they claim I owe down to a reasonable amount. I could wait 7 years but I don't know if I'll be able to build my score up much even with on time car payments and secured cards if I still owe so much in collections. Ouch.

Anonymous · ‎08-12-2015

@Anonymous wrote:
In Colorado you only have to pay for the months that the apartment was vacant. I have no idea how long the apartment was vacant for but I guarantee it wasn't a year. I just don't know how to go about proving that or how to get the amount they claim I owe down to a reasonable amount. I could wait 7 years but I don't know if I'll be able to build my score up much even with on time car payments and secured cards if I still owe so much in collections. Ouch.

The amount in collections is not directly relevant to scores. Only the number of items. A $250 item is the same as a $25000 item, scorewise. And since the are not CC charge offs, the items do not affect your UTI.

Anonymous · ‎08-12-2015

Google local housing advocates. There has to be someone who has been in a very similar situation as you in your area. Even google the company or complex to see if there are reviews or resident blogs.