paula77720 Posted March 31, 2009 Report Share Posted March 31, 2009 Our then primary residence in FL was sold through short sale 10/08. We had 1st (AHM) and 2nd mortgage (BOA). We hired a real estate lawyer who gave us bad advice. Now, We owed 40k and 68k respectively with the shortfall. To save our credit, we negotiated unstructured loan for 0 int for 30 yrs with the 1st through Radian (PMI co.) and BoA agreed to re-structure the loan. Five months later, we got a call from BoA, trying to collect the money. At this time, our credit score is already on the 520's because of the late payments past 180 days. To make the matters worse, my husband lost his job. We called the 1st (now being collected by Dyck O'neall) to settle for 10% and BoA for $6,000. Dyck o'neall has not yet approved our offer. BoA agreed for 6k but with "settled charge-off" on the report. We tried to negotiate but the response from their boss is negative, saying that all short sale collections past 180 days are charged off even if we faxed them a letter saying that the recovery dept supposed to call us after short sale.Should we take the deal with BoA even if the remark of settled charge off? Is it true that you can't get a credit for 7 years with charge off in your report? Link to comment Share on other sites More sharing options...
astiman Posted April 1, 2009 Report Share Posted April 1, 2009 A 'settled charge off' will not help your credit in any way.It's akin to a 'paid collection' in its effect. Link to comment Share on other sites More sharing options...
looksbothways Posted April 1, 2009 Report Share Posted April 1, 2009 You can still get credit once the charge off ages. It will show on your report for seven years, but it's the age since the last one that really affects your score. If you incur no further credit dings, these charge offs will stop hitting so hard after about 2 years. They'll still be there, but creditors will consider them to be more of a past mistake if you've had two years of healthy credit afterwards.The more important thing is to get these settled and paid so you can move on with your life, both financially and otherwise. Link to comment Share on other sites More sharing options...
paula77720 Posted April 2, 2009 Author Report Share Posted April 2, 2009 just curious, is "settled charged off" worse than foreclosure?Thanks! Link to comment Share on other sites More sharing options...
Rick9972 Posted April 3, 2009 Report Share Posted April 3, 2009 just curious, is "settled charged off" worse than foreclosure?Thanks!The short answer is IMHO no, not anywhere close. Do not mistake that answer to mean the "settled charged off" will not hurt for a while. But you can recover alot faster. "Settled/charged off" means that you paid less than you owed, but it also means that you took care of the debt to the best of your ability. (IE bad things happen sometimes to good people)Be sure (listen carefully) be very sure, that you have everything in writing and that writing states you are "settling the account in full for $xxxxx.xx."You really do not want these two accounts hanging out there, unresolved. Link to comment Share on other sites More sharing options...
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