Settling on a nearly 7 year old $20k repossession

[Anonymous]

I have been required (by my mortgage loan company) to settle a 2010 repossession on a joint account. I DO NOT have $20k to settle the account. What the hell do I do??

[RobertEG]

Are they requiring that it be paid prior to any loan approval, or only that you have at least entered into a repayment agreement/plan?

[Anonymous]

It must be paid! I was approved with conditions and this is the only one I can't satisfy.

[RobertEG]

Make the credtior a settlement offer for whatever amount you can afford,and hope they accept.

[Anonymous]

Dispute it. It will come off

[Anonymous]

Curious, is this the only lender that has your mortgage file perhaps another might not have the same condition....

Also as mentioned a settlement might be WAY less than the original 20k as it's 7y.o. maybe outside of SOL depending on your residence state

They may be ticked pink at $1500-3000 who knows, especially on an account they thought was dead as a doorknob

Counterpoint, they may 'get' why the urgency all of a sudden to want to deal (mortgage company hold up huh?) I'd sniff that out as a collector, knowing you're over a barrel

Interesting, let us know what you can work out
Best of Luck

*Also will the lender allow for the settlement amount to be rolled into escrow... I seen paying XYZ be part of closing
Say if the agreement is give me $3000 they cut a check for 3g's at the closing and roll it in your loan...
I wouldn't roll 20 and might not have the room to but if 2-5k got me out of a jam and erased the collection, saved my house hey....

[Anonymous]

@igottafixmycredit: Dispute it with the credit bureaus?

[Anonymous]

@gemini101: I'm going to ask if rolling the payment into escrow is a possibility. Didn't think of that.

Did I mention the account is with a collection attorney. Does that make it harder to settle??

[rmduhon]

Don't dispute anything if you are in the midst of a mortgage application.

[RobertEG]

The mortgage underwriter is concerned with the presence of the debt per se.

That applies,now that they are aware of the asserted debt, regardless of whether it is reported or removed from your credit report.

An FCRA dispute thus wont address the issue of legitimacy of the debt.

Additionally, the debt is apparently not asserted to be inaccurate.

I agree that pursuing an FCRA dispute at this point would likely be counter-productive.