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Trying to settle OC debts with checks from equity loan


MACH I
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I just closed an equity loan which included 3 checks made out to OCs for the remaining balance on those accounts (2 are in 5 figures). The broker had first told me that the additional check would be made out to me. He now says that once I reach a settlement with the OCs that they will be required by law to send me the difference.

My question is do I wait until after I have the signed agreement on the settled amount before informing the OC that the check that I'm sending is for more than that amount? Do I include this information in the settlement agreement letter? I am needing to pay off other debts with what's left.

Besides wanting to take care of this as soon as possible, I am concerned that the OCs will learn of my new loan and then not settle (one OC has implied that the loan is not late enough to settle). I am also hoping to refinance after a year if my credit rating is back to "A" status. Thanks for any help.

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I just closed an equity loan which included 3 checks made out to OCs for the remaining balance on those accounts (2 are in 5 figures). The broker had first told me that the additional check would be made out to me. He now says that once I reach a settlement with the OCs that they will be required by law to send me the difference.

Ask him just what law states this

My question is do I wait until after I have the signed agreement on the settled amount before informing the OC that the check that I'm sending is for more than that amount? Do I include this information in the settlement agreement letter? I am needing to pay off other debts with what's left.

You would want to make sure you have everything in writting, don't send a dime until then. I would get back with the broker, it just don't sound right that you get one check and have to hope the creditor sends you money back.

Besides wanting to take care of this as soon as possible, I am concerned that the OCs will learn of my new loan and then not settle (one OC has implied that the loan is not late enough to settle). I am also hoping to refinance after a year if my credit rating is back to "A" status. Thanks for any help.

You already have the loan, so it shouldn't really matter much to you. All you can do now is try to settle, if they won't you just keep trying. If the account is not old enough to settle, why not ask them to reage the account and bring it current? Here is a settlement letter for you.

Your Name

Address line one

Address line two

Date:

Creditor Address

City, State, Zip

Re: Account Number

Dear Sirs:

This letter is an offer to amicably settle the above account. It is not to be construed as an acknowledgment of my liability for this debt in any form.

I will pay your company the amount of $____ as full settlement of this account.

If you accept this agreement, I will send you a money order or certified cashiers check for the settlement amount of $______ in exchange for a full deletion of all references regarding this account from my credit profile and full satisfaction of the debt. This agreement is binding and will be void should you not hold up to your end of the agreement. Furthermore the debt will be deleted from my credit profile at all three credit bureaus or the bureaus your company regularly reports to in the course of doing business.

If you agree to the above, please acknowledge with your signature and return a copy to me. Upon receipt of this signed acknowledgment, I will promptly send you a money order or cashiers check in the amount stated above.

Notice: This agreement is restricted. This is not a renewed promise to pay but rather a restricted settlement offer only. By not signing below, you agree that the debt has not been renewed nor has any concrete written agreements been exchanged.

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