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Settling debt in 90 days. Imposible?


goingdownfast
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Hi everyone, just wanted some help in taking care of charged off debt. I am going through a loan mod and mtg. company wants all debts either settled or payments in place before permanent mod is given

 

I have about 7,000 total debt. Two are about 1,800 each, both cc debt now owned by JDB (Portfolio and CACH). The rest are smaller balances to various collectors. My question is, how to start the process? Every contact I have with them is like stepping into a war zone. I end up hanging up before I curse them out or have a stroke. lol

 

Does it make any sense to hire an attorney to do this? I would like to  settle for 40% or lower, but only have 90 days to get this accomplished. I realize this is not a lot of time. We had planned on filing chpt. 7 thinking we were losing our home due to husbands job loss, so we stopped all payments. Our mtg was sold, new company is working with us, but now I have to clean up this mess with collectors. Any advice would be greatly appreciated.

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To settle for a reduced amount I would want to have leverage against the JDBs and other DCs. No leverage has been mentioned. Having a hard deadline of 90 days is leverage for the other side. Even if they are not told directly of the deadline (which I would not do) I would think it is possible that they may pick up on some urgency/deadline looming during the course of settlement communications. The JDBs paid ~ $180 for $3600 of face debt so it is not like they need to be in a huge rush to settle when someone first contacts them. OTOH money now is better than money later and 40% is a heck of a lot of money IMO.

 

Having heard of "permanent" loan mods denied for trivial or "no reason at all" I would be very concerned about what actual guarantee, that if I am successful in dealing with existing debt, I will get my loan mod.

 

This is not qualifying for a new loan. The debt is already in place on the home. It is actually more risky for a mortgage company, that is truly more interested in collecting cashflow than stealing a family home, to require the homeowner to spend scarce dollars paying parties other than themselves.

 

I would want to find out if the mortgage company is relying on some government regulated loan mod program requiring odd behavior (paying other parties) that appears adverse to the mortgage company's interests.

 

I would be highly suspicious of unexplainable puzzling behavior and very cautious with a lack of a guarantee that if I perform the mortgage company will have to perform.

 

I trust mortgage companies less than JDBs.

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Just knoww that these jockers spent pennies on the dollar to buy yhour accounts. That means they have very little invested. They even smell money and the fact that you want to settle, they will want full amount. You can bet on that. If your CR has already been pulled by a bank or mtg. company, then, they are aware that your up to something. Stay off the phone with them. Write them and tell them what you want. Bet your not gonna get what you want or anywhere near it. They sure won't put it in writing. Are you near or past the seven year SOL? If so, you might have something to bargan with, but I doubt it. Cold hard facts.

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Sorry I left out some details. The last payments made were in 2011, so they are still in SOL. My loan  mod is being conducted through a government program. Only debts that are in current collections have to be addressed. They said either settle or set up payment arrangements. They consider collection accounts due in full each month, so that makes my debt to income ratio high. I have to be at 55% total including mtg.

 

I have about 3,000 saved to try to settle these accounts, I am just dreading dealing with the JDB's. My stomach knots up just thinking of it. Would I have any better luck having an attorney handle this? Even if my mod does not work out, I would really like to clear up this debt and not having hang over my head.

 

Thanks for all your quick replies!

 

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Sorry I left out some details. The last payments made were in 2011, so they are still in SOL. My loan  mod is being conducted through a government program. Only debts that are in current collections have to be addressed. They said either settle or set up payment arrangements. They consider collection accounts due in full each month, so that makes my debt to income ratio high. I have to be at 55% total including mtg.

 

I have about 3,000 saved to try to settle these accounts, I am just dreading dealing with the JDB's. My stomach knots up just thinking of it. Would I have any better luck having an attorney handle this? Even if my mod does not work out, I would really like to clear up this debt and not having hang over my head.

 

Thanks for all your quick replies!

Saving money un-knots my stomach so I probably don't have a solution that would work for the OP. ;-)

 

Negotiations for me would probably be quite different if the loan mod was "do or die" versus I would like to clear up my debt even if the loan mod fails.

 

An attorney that knows how to negotiate may do well enough to save their fee or they may completely fail to accomplish a "successful" loan mod required settlement. Calling a few consumer attorneys might find one that claims to be able to negotiate. I am not sure how to predict success with or without an attorney.

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  • 2 weeks later...

I'm also very interested in this topic - need to clear up the following debts in the next 3 months.   I was talking to the guy from ZipDebt and he made it sound like CAs/OCs/JDBs will basically jump at a settlement offer north of 25%.

 

what's everyone's take on this?  Would it be better to try and reach out with settlement letters/calls and try and clear the debt, or abandon hope of clearing it and just wait out the SOL (not sure if mine is 4 or 6 years, given that i moved from NY to TX after allegedly incurring these debts)

 

Amex - $8k

JDB - $20k

JDB - $6k

CapOne - $3k

CapOne/HSBC - $700

CapOne/HSBC - $1800

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