Capital One Settlement offer 50%

Discussion in 'Credit Talk' started by royalnbn, Oct 19, 2006.

  1. royalnbn

    royalnbn Well-Known Member

    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.
     
  2. ontrack

    ontrack Well-Known Member

    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?
     
  3. royalnbn

    royalnbn Well-Known Member

    The original balance was a mere $212. They are now reporting it at a whooping $1405.
     
  4. dch8ter

    dch8ter Well-Known Member

    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.
     
  5. royalnbn

    royalnbn Well-Known Member

    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.
     
  6. direred

    direred Well-Known Member

    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.
     
  7. jenstart

    jenstart Active Member

    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.
     
  8. direred

    direred Well-Known Member

    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.
     
  9. royalnbn

    royalnbn Well-Known Member

    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.
     
  10. direred

    direred Well-Known Member

    I'd dispute it as obsolete each month -- starting now.
     

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