Has anyone ever gotten a better settlement offer from Capital One. The debt is more than 6 years old. Beyond SOL. Will age off last report 07/07. Major barrier for applying for Mortgage in 07. Settlement offer of 50% is a little steep for such an old debt. But the $700 settlement offer is low enough to swallow if I can apply for a mortgage 3 months earlier. Any comments would be appreciated.
How much of the original delinquent debt is principal, and how much is accumulated interest and late fees? How does the $700 settlement amount compare with the original borrowed principal?
Personally, I would not pay it. The SOL is expired and there is nothing they can do. Waiting another 3 months to apply for a mortgage is not the end of the world. Besides, you'll have an extra $700.00 to help pay closing costs.
Waiting is the course I have been on. Waiting in the course I am 98% sure I shall remain on. I am seeking insight as I cross my t's and dot my i's. Thanks.
Is that your ONLY negative tradeline (or will it be when you apply for a mortgage)? I ask because chargeoffs falling off, especially old ones, don't necessarily translate to a score increase if there's other baddies on the report. Also, it's possible that a debt that small out of SOL will be an issue for a lender.
I have been told by a mortgage broker that some loans do not require you to pay off all outstanding debts, especially 2+ years old debt. If you really need a mortgage now, find a good broker that can approve you for a loan like that. The quote I got was not much higher than conventional. I would not pay it either way. They are getting desperate since it's out of SOL.
More to the point, I've typically lost 5-10 points when an old baddie fell off, so I'm not sure it'll translate to the score increase the OP is hoping for. A better strategy would be to dispute it as "obsolete" in January.
1 of 5 baddies. Only revolving baddy. Others are or will be paid before applying. I am interested to see fico without the monthly 150 late, CO, and derogatory utilization drain.