Ca won't dv,oc says differnt ca owns?????

[dacsmommy]

Hi. I am very confused, and hopeful that someone can help. To begin with we are trying to get a mortgage. The only thing hindering is a $13k dbt. Tried to dv they didn't reply, verified with CRA's. I contacted the OC and they tell me a different CA owns this debt. I know Calvary (the ca currently calaiming to own this) is shady, so don't want to pay the wrong people. (we just want to settle to be done with it). FMCC (OC) says someone by the name of National Reovery Center owns it? What to do? Trying to get the mortgage approved here shortly. Any helpful guidance is greatly appreciated.

[looksbothways]

I would have the OC give you contact information for National Recovery Center and deal only with them via USPS (so you have written proof of all agreements), since the OC would know best who they assigned to collect the debt. I can't find any information, though, about a CA by that name.

Others can give you better advice about how to get Cavalry off your back.

[Debt Guy]

You are going to have to track this down the hard way. It is entirely possible that what you were told was correct. If the OC sold to National Recovery who then sold to Cavalry or placed the account with Cavalry-- well, there you go.

The only way to find out is to Call the OC and get the phone number for National Recovery. Then call National Recovery and determine the status. They will know if it was sold or placed with someone else. You follow the chain until you get to the end.

Once you figure out who has the account, that is the party you deal with.

If getting this mortgage timely is important to you, forget the advice to do all this by mail. First, it takes too long. Second, these organizations are simply not organized to do business by mail and they are not likely to change their business to suit what you want. Also, they full well know that if they don't do a good job of negotiating by mail -- some just flat refuse to consider the idea because they know they would mess it up six ways from Sunday.

That being said, make your deal. Then ask they put the agreement in writing -- a settlement letter or a payoff letter is the terminology depending on what you worked out. The fastest way to get it is by fax.

Read the letter carefully and make sure you understand and agree to the terms before you send any money. Typically, the letter will describe the account (name of OC, OC account number, current balance) and what they are willing to do (settle the account in full for $x.xx and report the account to the CRAs as settled) and what you are willing to do (pay the amount by Y date).

Sometimes, consumers insist that the letter contain language that the remaining balance will not be sold to any 3rd party. Some debt buyers won't agree for fear they will inadvertently mess up and sell the remainder to someone else. Personally, I don't think it is a big deal to not have that language so long as the settlement letter is clear that you are settling the balance in full and that you keep the durn thing. It is not hard to use that letter later to make someone else go away.

Be advised that the debt owner is required by law to send you a 1099 for any amount forgiven (if over $600).

If you do not feel comfortable handling this yourself, you can hire an attorney or a settlement professional to do it for you. If you decide to hire a settlement professional, never pay any money in advance and stay away from the guys on late night TV and the ones you find on the internet -- you want to find someone who knows what they are doing (a retired collector or retired banker would be best) and you want to compensate them as a percentage of what they save you so that you know they are working hard to get the best possible deal for you. The disadvantage of a settlement professional is that you must pay for their services. The advantages of a settlement professional are 1) you don't have to deal with the debt owner, 2) the paperwork gets done correctly, 3) the deal gets done quickly, 4) the settlement amount will be lower that you could negotiate on your own (if you get a good one who knows how to pitch the deal and who to pitch it to).

Good luck to you.