Last year (July 2015) I got a judgment from a credit union for 17K. The jugment was issued in Virginia. My ex-charged up my credit card and left me. At any rate, I wasn't able to pay the amount. The law firm who is representing my old credit union mailed me a non-certified letter 60 days ago that said the balance was 31K because of interest, fees's, etc. However, they are willing to settle for 15K provided that I send it do them in 60 days. I've managed to get 3k (three thousand dollars). There is no way I can get 15K. I want to counter with the 3K. Need advice on how to do this? But this is where things get horrible for me. I own two condos. One I live in. The other I rent out. The one I rent out I lose money on each month. I've never made a profit. However, both have equity. My credit is sooo bad, I'm not able to get a loan from my bank - I TRIED! I live in DC. The one I live in they can't put a lien on because of homestead exemption. However, I'm concerned about the 1 I rent. Can anyone give me any negotiating advice? The clock is ticking. I need to respond to the law firm by the end of this week.
Welcome to Creditnet Mary. I'm originally from MD, so it's nice to meet another East coaster on Creditnet! Anyway, I'm really sorry to hear about your situation with the divorce and this nasty judgment. May the fleas of a thousand camels rest in the armpits of your ex who charged up your credit card and then bailed. So, the fact that your creditor pursued a judgment in the first place means they likely knew you had some income and assets worth pursuing. Otherwise, they wouldn't have gone through all the trouble and expense to sue you. I'm not an attorney, but on a balance of $31K I really doubt they would be willing to settle for just 10% at $3K. If they did, I would really be surprised. But if that's honestly the very best you could possibly do given your circumstances, then what I would do is send a response to the law firm outlining my counter in very basic and clear terms. You'll want to send it CMRRR too so you'll have a record of confirmation that the letter was received. In addition, make sure you explain in your letter that if they accept your offer in writing, then they are accepting the negotiated settlement amount as payment in full for your debt. Have you thought about selling your investment condo asap? It's a really great time to sell any real estate these days, and then you could take some of your profit and clean up your debt once and for all. As soon as this law firm finds out about it, they'll likely place a lien on it anyway.
Hey Mary- we never heard back from you, so I'm curious to hear how you responded to the law firm last week? Happy to provide further help if you have additional questions regarding the matter too.
