PFD instead of DV'ing

[pinkeysas]

I have come into a situation through a family member where my fiancee and I would be able to have $75,000 to put down on a home. (basically we'd be

getting an early inherratence.)

Which is absolutely wonderful. The only catch is that in order to get it early we would need to purchase a home this summer.

We sat down with a lender and she told us we need to get rid of 3 CA accounts being listed on my Fiancee's CRA's. She told us to simply pay them. (these accounts are all 3-4 years old and under $500 each)

My question is because of the time crunch we are in to get these 3 items off of his CRA's what would any of you do? Send a DV letter or just wish for the best with a PFD letter?

Thanks for any help.

[bigboyinc]

If you have the cash to pay them, then I would BUT GET IT IN WRITING FIRST!!! I just did a successful PFD. Here is my letter. Modify to fit your situation.

March 12, 2007

Dear xxx,

Re: Account Number xxx-xxx

I really appreciate the fact that your company is willing to work with me on this

Matter. I want to make an honest attempt to settle this debt. My credit rating is the most important item in this settlement agreement to me as I am striving to regain a perfect credit rating as reported to the credit bureaus.

This letter is to make an offer to settle the debt between myself

and your company.

The amount I would like to propose as the payment in full for this debt is

$ x. In addition, this settlement would require the complete removal of this account from my credit file.

If these terms are acceptable to your company, please sign the attached letter of

agreement and return a copy to me. Upon receipt of this signed acknowledged

agreement, I will express you a money order in the amount stated above.

Yours truly,

x

I did draw up an agreement, signed it and sent it to them. They signed it and sent a copy back to me with the written words "we will delete once payment in full has been recieved."

[pinkeysas]

Thanks for the reply. In your situation did you DV first or just send out the PFD letters?

Also, can I ask what CA's you did this with successfully?

[lyle7289]

I would first dispute those with the CRA's and at the same time send the DV's (the ole' one, two punch) If they validate, then I would send a PFD.

REMEMBER, If you pay them they will remain on your report as a PAID COLLECTION which are very hard to get rid of.

[pinkeysas]

I understand that its always best to go through the DV and Disputing method. But unfortunantley time is not on my side.

If i end up sending a PFD letter like the one Bigboyinc submitted above. And then assuming all goes well, make the payments. Will that reactivate the SOL?

Cause these items are all scheduled to fall off of my reports by 2009. So worst case scenario I have paid collections listed until they are out of the SOL in 2009.

Thanks for your help.

[lyle7289]

Look at the overall picture though. Disputing takes 30 days MAX and you could get a delete.

Paid collections will affect your score and will cost you in valued interest on your loan. 1 percentage point on a mortgage = $hundreds per month on your payment.

[Big Time]

That's why you need to get the "delete" part in writing. A lot of CA's know that the only reason they don't get paid is because a "paid collection" doesn't help a consumer.

[pinkeysas]

Thanks again so much for everyones advice.

So i guess what i will do is send a DV letter to the CA's stating something like:

dear so and so,

I noticed that you are listing a debt on my CR. I do not recognize this debt. Please supply me with proper validation of your ownership of this debt and your legal rights to collect in the state of Wisconsin.

If you cannot prove the above stated request, I would ask that you respect my rights under the FCRA(or whatever that abv. is) and remove your listing from my CR's.

Thank you,

blah blah bah

How should I go about disputing with the CRA's?

I have read of MANY different ways to go about it. Online, Cert. Mail or calling.

What would you recommend. Or what has worked for any of you?

[firstsource]

We sat down with a lender and she told us we need to get rid of 3 CA accounts being listed on my Fiancee's CRA's. She told us to simply pay them. (these accounts are all 3-4 years old and under $500 each)

I would not pay them until closing. Make your deal or get the items deleted, but don't pay them until closing. Your scores will drop a lot if you do. That is no problem unless you end up having to have your credit report pulled before your home purchase goes through and after the changes have been recorded on your credit history.

IMHO it is a dumb policy, because the result of credit scores dropping when old bills are paid off insures that no one pays things off unless they are forced to. The worst thing however is that there are Loan officers out there that continually give bad advice.

Charles