Will someone please look at this letter?

Anonymous · ‎10-27-2018

Hi,

Will someone please look at the letter below and let me know if I should send this to GM Financial. I'm desperate. This repossesion is the only account I'm worried will keep me from being approved for a morgage loan. I'm willing to share any other info if that helps with getting advice. Right now, I'm just inquiring if the letter below is decent enough to send in.

GM Financial
P.O. Box 181145
Arlington, TX 76096

Re: Acct # ******* - Charge Off

Amount: $7,551

To Whom It May Concern:

In 2015 due to unfortunate circumstances, my 2008 Mazda 6 was repossessed. I was unable to pay the amount required so I never regained possession of the vehicle.

At the time of the repossession, I had fallen on hard times. As a result, I lost my vehicle and I had to move out of the home where I resided. That was a very hard phase of life for me to go through.

Since 2015, I have strived to gain control of my finances and within the past few months I have started the process to become a home owner. During this journey I have either paid in full or I am currently in the process of paying off accounts that I had previously lost control of.

With that being said, I’m reaching out to GM Financial in attempt to settle this dept.

In the spirit of compromise, I would like to inquire the following: 1. if there’s a possibility to negotiate a payment plan to get this account paid in full 2. if a settlement of $3,500 is applicable. If an agreement for repayment is reached, I would also like to request deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this agreement is merely to have this item removed from my credit files to better my chances of home ownership.

If you agree to the term 2 and accept this agreement, certified funds for the settlement amount of $3,500 will be sent to GM Financial in exchange for full deletion of ALL references regarding this account from my credit files and full satisfaction of the debt.

If you agree to either of the above terms, please prepare a letter on your company letterhead explicitly agreeing to the same terms as the above settlement offer or repayment plan.

Please address all correspondence regarding this account to:

My Info

Kindest regards,

My name

RobertEG · ‎10-27-2018

If credit report deletion is your primary goal, then you will likely have to pay in full now.

Pay for deletion is hard to achieve, as it is contrary to CRA policy, so most creditors are reluctant to grant any PFD.

Chances are slim unless they at least have the full bundle in their pocket.

Is it possible that you can pay in full now, rather than enter a repayment plan or offer less than the full amount?

Anonymous · ‎10-27-2018

Hi,

Thank you.

No, I can't pay the full 7k in full right now unless I put it on my credit card. I don't know if that would be a good idea. Do you?

RobertEG · ‎10-27-2018

Using a credit card will result in the increase in your % util of revolviing balance, which will offset to some degree any score improvement.

Depending upon the credit limit, it might place the account is maxed of very high % util, which could have significant scoring impact.

It also likely has a much higher interest rate than that currently being assessed on the delinquent debt.

A high revolving % util that might then extend for a period of time could result in concern by that creditor, and possible evaluation of a credit limit decrease as the debt balance is reduced.

It is a personal decision, but may not be the most prudent action.

Anonymous · ‎10-27-2018

@Anonymous wrote:
Hi,
Will someone please look at the letter below and let me know if I should send this to GM Financial. I'm desperate. This repossesion is the only account I'm worried will keep me from being approved for a morgage loan. I'm willing to share any other info if that helps with getting advice. Right now, I'm just inquiring if the letter below is decent enough to send in.

GM Financial
P.O. Box 181145
Arlington, TX 76096

Re: Acct # ******* - Charge Off

Amount: $7,551

To Whom It May Concern:

In 2015 due to unfortunate circumstances, my 2008 Mazda 6 was repossessed. I was unable to pay the amount required so I never regained possession of the vehicle.

At the time of the repossession, I had fallen on hard times. As a result, I lost my vehicle and I had to move out of the home where I resided. That was a very hard phase of life for me to go through.

Since 2015, I have strived to gain control of my finances and within the past few months I have started the process to become a home owner. During this journey I have either paid in full or I am currently in the process of paying off accounts that I had previously lost control of.

With that being said, I’m reaching out to GM Financial in attempt to settle this dept.

In the spirit of compromise, I would like to inquire the following: 1. if there’s a possibility to negotiate a payment plan to get this account paid in full 2. if a settlement of $3,500 is applicable. If an agreement for repayment is reached, I would also like to request deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this agreement is merely to have this item removed from my credit files to better my chances of home ownership.

If you agree to the term 2 and accept this agreement, certified funds for the settlement amount of $3,500 will be sent to GM Financial in exchange for full deletion of ALL references regarding this account from my credit files and full satisfaction of the debt.

If you agree to either of the above terms, please prepare a letter on your company letterhead explicitly agreeing to the same terms as the above settlement offer or repayment plan.

Please address all correspondence regarding this account to:

My Info

Kindest regards,
My name

I think you're coming off too strong. You're jumping right from a significant debt to them agreeing to take half as a settlement and then taking the account off of your reports on official paper. You've told them you're in the process of buying a house, which would likely mean you have the money to settle the debt. So I would probably leave the buying a house thing out of the letter if you want them to settle for half.

Honestly to me, if you're really trying to get it off of your reports asap, I would entertain the idea of offering them to pay it in full in exchange for a PFD. Because like I was saying earlier, they will likely question how you have the $$ for a downpayment on a house, but not to pay the debt in full.

But I'm just offering my perspective. Ultimately, it's your decision. I had written a GW letter to a creditor once with success, but it was only after the debt was paid in full. Good luck.

Anonymous · ‎10-28-2018

Thank you so much for your advice. I will definitely take everything you stated into consideration.

Anonymous · ‎10-29-2018

Sorry to hear about your hardship. It's definitely hard to bounce back, but you'll get there!

In my opinion... I'm not sure how much total credit you have available to you, but I think high utilization is much better than a repo on your report. So, with that said, I think if you can get GM to remove the account completely on your report, charge it on your card. I would only do this if you are charging your utilization to UNDER 60%. Any more utilization than that will put you at higher risk to lenders.

Also, things like this will take time to resolve. If you're in a rut to move asap, you may need to leave the repo on your account and let it fall off after your 7 year mark. If this is the case, just explain to the mortgage lender your situation with the repo. They may charge you higher % interest rate.

Good luck and let us know how you managed!