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Newbie with Loan/Debt Settlement ???


lilrowo
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Hi, I found this site a few days ago, and it's great - a wealth of information. I have a few questions about debt settlment.

We are in the process of getting a home equity loan, but it's not enough to cover all the cc 's bills - unfortunately, we've way too many from built up debt over 20+ years. On one of the accounts, Household Bank, I was offered a 30% settlement in a back in May. It's quite a large balance and didn't have the means to settle the account then. It is now on my credit report as a write off.

I also have a couple of other accounts that are late. One of the accounts, Fleet, was on the verge of being written off, and they made an offer if I paid 3 consecutive payments, they would bring it up to date, but my monthly statement will still show a much larger minimum payment amount due. So far, I have made 2 of the 3 payments.

There are also a few other cards that have had late payments that I would like to try and settle with. They are Discover, Chase, Citi, First USA (which recently became Bank One) and possibly Sears.

Since my loan amount will not be enough to cover all my cc's, what is the best way to try and get settlements from these credit card companies?

Also, how would I word the debt settlement letters, since I am getting a loan? (hopefully) I would prefer them not to know this, although the one that was written off will be paid by the mortgage company, because they said they would have to pay that one in order to get the loan, and to start the process now for settlement. I would assume they would be able to tell after the loan is processed from my credit report if it goes through.

I hope this makes sense, and would appreciate any input. Thanks!

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Do you absolutely have to pay every thing off immediately, or would just paying the majority work --- then follow up later paying the rest of the accounts off. Do you have the financial means to take care of everything eventually?

Reason I say this, is to go about it in the best means to save your credit, to request re-aging, paid in full or such and negotiate for the best possible reporting in the end.

That way, you can work to build and come out of this tough spot with the best of advantage and save what may be years of higher interest rates.

I have no knowledge on settlement letters, but just thought to ask this questions; to see what you stand & point out some options here to you.

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Thanks for your repy. I still have to find from the mortgage loan company what I would have to pay off immediately. I know for sure that I would have to pay the charge off account, but the loan officer suggested that I try to settle, because lots of time they will settle for 50%. That's why I'm looking for some advice on a settlement letter, and would like to ask them to report it as paid or discharged, or whatever it would take to get the negative off of my credit report. I plan on trying to do the same with some of the other accounts, so I can try and settle for less. We had a good credit report, and the bottom fell out when my DH was in between jobs. He does construction work, and the job market is the pitts, hence I couldn't pay all of the cc's and some fell behind.

This particular cc company had sent a letter that offered to settle for 30% a few months ago, but when I called to try to do so, they said it was past the expiration date, and would not do the settlement, and would only settle for over 80% or so.

If I don't have to pay them all off, I would like to try and take my time to settle, or at least get some of the late fees and over the limit fees removed to bring the balances down before paying them off. With so many cards, most of them dropped the limits to the amount of the balances when my credit report went downhill, and when they added the finance charges and late charges on some, sent them over the limits, then added over the limit charges to boot. So in the past few months, my balances have sky-rocketed, and that is why I am looking to settle or get some of the charges removed.

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Very important question; how bad do you need this refinance right at this time, can you wait? say a few months - or you trying to push for completing your goals in 30 days to move forward?

Cause reason I say this, you can immediately start disputing with the CRA as not yours and bump off of the credit report as many accounts as possible.

See what has happened to you, is that the mortgage company pulled a credit report on you already, or if the mortgage company did an investigation of the matter recently --- the collection agency now knows that you are applying for a mortgage, once they have this knowledge they have power, cause they are not going to settle for less, they will drag it out for as much as they want.

Your best bet if you can is to wait on the mortgage, until you get the upper hand on a few of these collection agencies, meaning pull the rug out from under them, if they are missing off the credit report - then they don't have the power any longer to influence your mortgage company. Don't have to pay what you can't see. Least we can always hope this to be the case with your mortgage company - should be if you make the mortgage company pull a new credti report when you are done updating.

Judgments are different, mortgage companies do have legit issues with anything which can threaten the house, but other then that you have been put in a terrible position at the collection agencies mercy. That is not good at this point, cause they will kick you when you are down, every chance they get.

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Well, I have an offer to settle 65% of the charge off account. We had already inquired about a pay off amount, and I told this to the mortgage company, who negotiated with them also. Now, to make things more complicated, we have now been offered a better interest rate than the first mortgage company, and I have to get the settlement paid by the end of the month, and don't know if the new loan will go through in time.

Does it make a difference on your credit report if you have a charge off account as opposed to a settled account? I'm pretty sure they are going to report it as settled for less than the full amount. I would really like to be able to pay the settlement amount if at all possible.

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  • 4 years later...

Wow this is a good information for us xdancex.In loans you can save a lot and you can earn interests in your savings.You can get your money anytime, and you can borrow to them. But loans can be difficult to repay more quickly than agreed because you might find that the additional charges forending the agreement early mean that you don't actually save money. 8-)

____________

jake

Don't be a victim. Stop credit card debt now. We can help.

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ana - this thread is almost 5 years old, and your signature line sounds like some sort of "debt fixer" site waiting to happen. Consider this your warning, please. Your post also sound a bit trolly/spammy for a newbie. If this is not your intent, I apologize. But I call it how I see it.

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  • 3 weeks later...
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