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Settlement offer proposed by WAMU due 4/5/07...what should I do?


Guest SGR1970
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Guest SGR1970

Hi everyone,

I'm a newbie to this site and I hope someone can help!

I live in NY. I owe WAMU $3840 (102 days past due) and they proposed via their website (I did not call/ask them to do this) a settlement for $2306 (60% of the balance, 4 payments of approx $577), which must be accepted by 4/5/07. The terms state that once paid, the account will be "settled in full."

The problem is I can't afford the settlement -- money is too tight to mention! Has anyone tried renegotiating once the OC has made the first move? I have no money for a lump sum payment or other negotiations, so maybe I'd better take the offer while it's hot?!?!

Lastly, what happens to your credit card once the account is "settled." Is the account closed and no longer open for use??

Thanks in advance everyone!!

SGR

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Two things on settled accounts.

1) It's still a negative TL on your CR, although not as bad as say a CO or collection.

2) You get a 1099 for "income"

Since it's still with the OC, they are offering to settle, and you can't afford to pay the lump sum settlement, I'd call 'em up and ask whether they would accept payments over time for the full amount. Don't agree to payments you know you cannot afford. That's just silly knowing you're going to put yourself delinquent on the account.

Can you do $200 a month? If so, ask whether they will cancel any further interest on the account and take $200 a month until PIF--in 20 months.

At $150 a month, it will take 26 months. $100 a month will take 39 months.

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Thats a good advice ...

also, in your settlement response, include provisions that:

-- ensure deletion from CRs

-- prohibit further insertion (though i would doubt it with such major OC)

You may also want to consult this resource (http://debtorboards.com/smf/index.php?topic=17.0) for further tips on handling settlement....

all the best - Y

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