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how to get CA to settlement


faiths13
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In order to move forward with buying a house. my husband and I need to start making payment arrangements on our 3 collections, which total almost $5000. One of them is going to fall off next year. What is the best way to go about trying to get some sort of settlement on these debts? Is there a way to possibly get them down before we make payment arrangements, or do we need to just pay the full amount? I have never had to make payments to a CA before, so this is totally new to me.

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I don't see why not. It's all a matter of how well you negotiate and make them believe that what your offering is all you've got. They accept that or nothing. Depends on how old they are/how many times they've been sold would decide how much you could negotiate it down.

I had an old Cap 1 collection that had been sold it was 2 yrs old and i got them to settle for 50% over 12 payments. I know they still made a good profit on it so...

They were very aggressive 3 or 4 calls a day and i ignored them a lot and made them aware that i had a lot more collectors to pay than just them and only so much to go around. I also had nothing to loose and had already decided to let my credit go to hell so i truly didn't care and they knew it.

Also if you have one that is going to fall off in a year check the SOL in CA, if it's time barred that's a very good negotiation tool for a low settlement.

Edited by heavyhauler110
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If they are out of statute, which the one that is soon to fall off probably is, they should accept almost anything you offer, because they can't legally sue you for it.

Does the bank want the credit report to show after you pay them, "paid in full" or just "settled"

On that out of statute, I'd make it clear you were well aware of the statute of limitations and the fact the account is about to fall off your report, and offer them five cents on the dollar and might???????? go to seven or eight.

Once that falls off your report, they can't legally sue and they know you are aware of the system, they literally hold the true definition of a junk debt. There is nothing legal they can do with that account other than sell it to somebody else for most likely half-a-cent on the dollar. Therefore, I would expect them to jump at five cents on the dollar.

The other accounts really depend on a lot of other factors, the main one being what exactly a satisfactory resolution is.

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basically we are trying for an FHA loan and we have to show that we have made payment arrangements on our debts and have made 3 verifiable payments on them. It really pains me to have to pay anything on the on past the SOL. The other one is $3000 and I am really angry about that one because its for a rental we had where we paid $1500 in last months rent that we can't prove anymore, and the company admitted we did pay it, then changed their story and said no one ever pays last months rent there. So we are getting shafted big time on that debt.

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basically we are trying for an FHA loan and we have to show that we have made payment arrangements on our debts and have made 3 verifiable payments on them.

Right, I get that. But what is the FHA definition of acceptable payment arrangements.

You can pay $400.00 a month for three straight months on a $4000.00 debt that you settled for $4000.00 and have seven payments left.

Or you could pay $400.00 a month for three straight months on $4000.00 debt that you settled for $2000.00 and have two payments left.

Both meet the requirements that you just laid out, but obviously have a great deal of difference to your checkbook.

Plus I'm pretty sure the FHA would be fine with the one out of statute being considered settled or paid in full as opposed to making three payments. I'm pretty sure no amount due will look better on you than three payments being already made but an amount still outstanding.

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