Everything posted by RogerDodger
In regards to trying to keep some old established accounts alive through the process of negotiating settlements with others I don't see where there would be any motivation to a company to close an account that is in good standing just because others are not getting paid. (That doesn't mean I will count on it not happening) For Example.... A Target Card that is 11 years old with a $900 limit. If there is a $850 balance and it is paid on time every month, why would Target want to close the account if they are un-involved with the other lender's accounts not being paid in order to try to negotiate a settlement? It would be easy to pay month after month followed by charging some additional groceries to keep the balance in place throughout the process so Target's risk is never increasing. Upon settlement of the debt I want to deal with Target could be paid down to a low amount and would serve as better account to rebuild score off of than some secured card. Right? Assuming I went the Settlement route I would be trying to negotiate Settlements across multiple accounts with 4 different major lenders. Assuming I can my plans are to keep the following paid perfectly for the duration of the process. Major Auto Company 2016 car at 0% Major Auto Company 2015 car at 1.6% Target, Discover, Firestone and 2 unrelated banks Visa and Master Cards all over 8 years old with perfect pay history. A Personal loan with a credit union. Wouldn't that result in a better score 18 to 24 months from now than starting a year from now with secured credit cards or low balance cards?
@Clydesmom Your response to my statement and question is phrased in a rather combative tone so I will not respond point to point to your claims, however, they are not factually correct here in Texas in regards to liens attaching to primary residences, the need for "settled" accounts in qualifying for a mortgage or implying that rate might be prohibitively high due to a 627 score unless you consider 4.375 to be "far from prime". In regards to the "story" all I can say is I know the facts are accurate in regards to his current scores and unsettled accounts (saw his credit reports) as well as his just closing on a new home. @BV80 Thank-you. I am aware of the ability to both negotiate settlements and file disputes without the need to hire someone and if I choose to not utilize the BK route I have every intention on educating myself and handling things on my own. To restate the question I am looking for information on..... Assuming I decide to take the route of negotiating settlements on my own I know a ) To get Creditors to the table to consider a settlement I need to quit paying them and see my score trashed over the next few months. b ) I need to put together enough cash to make settlement offers. I believe I can be in a position inside of 6 to 9 months to start negotiating and would be looking to settle with 40% to 50% of what was owed. c ) Pressure and/or stress will not be a factor for me. I know I can handle it. d ) I need to be able rebuild my credit score. It is the rebuilding that credit score part that leads to the questions I have. I have a couple of small department store accounts and a couple of Visa/MC accounts that are 10+ years old, perfect pay and $500 to $1200 Credit Limits that are not related to any of the institution I want to negotiate down. If I make some purchases and keep paying on them throughout the process I was hoping I would not see them simply closed. Closing them kind of encourages a person to take the same approach to them and would be counter productive right? But I have no idea what the institutions would actually do. Anyway... Older accounts kept open and paid would have to have a more positive effect than new secured accounts started a year from now. I also have 2 relatively new cars I will not miss a payment on as well as figured I would do a 2 year personal loan from my credit union before embarking on the process. I guess it would help to state that I currently have reasonable scores and perfect pay history on these accounts for over 8 years. I know the recent (last 8 months) changes to my income will NOT allow me to overcome the affect minimal payments and mounting interest will have on my situation so I am looking at options now to position myself for the 18 to 24 months to come.
An acquaintance was just approved for a mortgage loan about 18 months after he quit making payments on all of his credit cards walking away from close to $100,000 in debt. Some Mortgage companies do not hold unpaid against someone provided it is more than 1 year old and they have rebuilt their credit score. He totally quit paying about 25 accounts he had with Barclay, Capital One, Citi and Synchrony. After 8 months he hired a Credit Repair company although I am not sure what they did. He had simply walked away from the debt. He kept a handful of cards from banks unrelated to the ones he quit paying with small limits and kept them paid every month with less than 20% of his limit owed. About 18 months after the first 30 day late hit his report, never making another payment, he had a mid-score of 627 and was able to qualify for a home loan with none of the uncollected/unsettled dept considered. That's the story he had and I saw his 3 reports and it seems to support it. How far fetched does this sound? What am I missing? I can't believe it was easier to accomplish than doing a Chapter 7 which I've seen people recover from inside of a year and buy a home in 2 to 3 years time frame after the discharge. I have been considering Chapter 7 to deal with about $70K of CC debt after my income was reduced by over 50%