Offer to settle letters?

[lindalee]

A few years ago, I faced both personal and financial challenges. Now I want to buy a house and looking for a way to settle with my creditors.

I need help in drafting an effective offer to settle letter. I don't have all the money to pay off the debt. Will my creditors accept partial payment?

Does anyone have letters they've used before and that works? And after I settle for partial payment will it affect my credit in a positive way.

Thank you for your help.

[Clydesmom]

You already have a thread on this issue here:  http://www.creditinfocenter.com/community/topic/327906-best-strategy-to-settle-debt/#comment-1345209

Starting a new thread isn't going to change the answers.

5 hours ago, lindalee said:

Will my creditors accept partial payment?

No one can predict that.  All you can do is offer to settle.  They either accept or they won't.

5 hours ago, lindalee said:

Does anyone have letters they've used before and that works?

It isn't the wording of the letter it is the amount you offer.  Too low and they reject it.  

5 hours ago, lindalee said:

And after I settle for partial payment will it affect my credit in a positive way.

Somewhat.  Settled for less than owed is still going to have a negative impact to a certain degree.  However, no underwriter is going to give you a mortgage with open collections.

The biggest thing you need to deal with first is that lawsuit against you by Midland.  Chances of getting a mortgage with an open lawsuit or a judgment are zero.  With a pending suit and 4 collections you are looking at at least a year to solve this or make any sort of significant dent in them to be able to even remotely consider buying a house.

What ever you do, do not pre-apply for a mortgage until you settle these.  Creditors pay the bureaus for lists of consumers who app for mortgages in any way and compare it to who owes them money.  If they find out you want a mortgage then you lose your ability to settle for less than owed because they know you can't get a mortgage until you clean up the report.