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Debt Settlement with Wells Fargo


vivendi75
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Hello everyone,

 

I just found out about this forum and this is my very first posting on the forum so please bear with me. First off, here's a quick background info:

 

I was laid off from a full-time job back in 2009. Financially strained, I was left with no other option than to put my first and only home on short-sale. The more painful part of the story is that I also had a (roughly) $90,000 HELOC on the primary home mortgage, which the original creditor (then Wachovia before merger with WF) eventually wrote off after numerous attempts to collect it. By the way, the HELOC became first delinquent some time around June, 2009.

 

Fast forward to today: Obviously, my credit rating had already gone from near-perfect to toxic but I managed to bring the credit scores in all three credit agencies to the neighborhood of 700. Having said that, my recent online research on debt settlement seems to suggest that:

  • The SOL (probably) has expired on this debt in my state (VA - 3 years), assuming the SOL period kicked in on or around June, 2009.
  • Since the HELOC account had long been written off and the SOL had already expired, the current value of this account is probably very small - this website seems to suggest that for "years-old, out-of-statute debts", there's "a penny or less" on the dollar.
  • If the above two statements are reasonable assumptions, that could mean the HELOC account is worth less than $1,000 - that is, one thousand dollars.

So, here I am seriously considering sending a 'Agreement to Compromise Debt' letter to WF to change the account status from "Write-off" to "Settled" in exchange for the settlement money (Pay-for-delete would be ideal but it seems that is not within my reach). Is this even remotely feasible? Am I missing something? Again, my knowledge and experience are next to nothing on this topic and that idea is based on my limited online research on how to tackle this problem. So, please pardon me if I am sounding lost or clueless - or both.

 

Any constructive feedback or comments will be very much appreciated!

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If the debt is this old, Wells probably won't deal with you.  You're going to be stuck dealing with a collections firm.  

But what if the debt is still with the OC? There were times when a collection agency tried to deal with me but the last I heard from them is almost 2 years ago. By the way, is there any reason why WF would not deal with me? I would think since the debt is already written off from their account, any extra money they get to collect from me would be good for them. Is this not the case?

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  • 2 months later...

$90k is a lot of money.  Even if the SOL has run out, its still collectable.  All the SOL means is if they sue, and you show up, and the judge agrees, they don't get a judgement.  Then, you get to try to convince the IRS you don't owe taxes.

 

Check your CRs.  If the WF tradeline says "sold to another lender" and their balance is $0, then its been sold to a junk debt buyer.  They'll be more likely to settle...but, I personally, would never pay a JDB anything unless ordered to by a court...and the SOL may cover you there.  But, you'll still have the IRS at your door.

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I agree with Willing. If your dealing with WF they are not going to want to settle for pennies on the dollar because, they for one, have not sold it. It's when a JDB or two, or three, or four start buying it. Thats when the price drops. Again, I would NEVER PAY a JDB a dime for an account.

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