@scmami wrote:
This was the reason she said she wouldn't take under 70%...using the actual numbers (above numbers are estimates) I'm going to pay exactly $599 under the balance. I am mostly concerned about the reporting. I as under the impression I'd get a ZERO balance if I settled...but of course a note saying settled for less than full balance. Is that only a CA rule? I have been reading the last few hours and it seems to be a common CapOne practice ....thoughts?
It's not an exclusive CapOne thing, I've seen NCO (Collection Agency) and AmEx use it (OC). A "paid collection" is better in the eyes of lenders than an Open collection, the comment settled for less really doesn't mean much (anything) as far as scoring. As far as a mortgage it would be considered a paid collection, still an account gone bad, but not still bad.
You can GW a paid account with a better chance of success, rather than a still open account, however there is no guarantee that an OC will accept a GW. Case in point, I've had an account with PenFed for 35+ years, in 2009 I was late on one payment (30 days) and this is after having many many loans throughout the last 3+ decades, none ever late for 33 years - I even paid the loan off within the next 6 months (it was a $25k unsecured personal loan). I gw'd, they told me to go pound sand.... That loan shows as paid in full, with 1x 30 day late as a derog on my CRA report, nothing I can do about it but wait 7 years.
