What are some of the best methods to use to get a creditor to agree to delete a chargeoff entirely if you negotiate a settlement. I have an old (date of last activity (2/96) with Capital One and have negotiated a 40% settlement but advised them I would not settle unless they agree in writing to delete the entry in it's entirety from all 3 credit files. I advised them that the 7 year time limitation is up in one more year and I certainly am not going to reset the clock at this point for them. They gave me the standard speach that they do not have the ability to delete it from my file. I told them I would not settle otherwise. I have not put anything in writing and have not validated this debt, but do know I owe it and had an account with them. We want to buy a home this year and FHA won't let us qualify with this chargeoff on our file so I have to have it removed or pay a higher rate. It is worth it to me to pay the small negotiated amount and have it deleted because the savings on the mortgage would eat the cost up in less than 6 months. Our credit is fine otherwise so this one account is keeping us from qualifying for the best rates because it shows as a chargeoff with balance due. I am told their new quidelines do not let you qualify if you have any chargoffs, liens, or outstanding judgements. I have time before getting the mortgage so what methods are successfull in getting them to agree to my terms.
If you can be patient I think they might change their stance on not deleting with settlement. Did you tell them you will be trying to get a mortgage soon? They may be waiting you out if you did. How about trying to speak with a supervisor or write a planetfeedback letter? Maybe tell the supervisor you will pay 50% for deletion now and 0% next week if they have not made a decision to delete. Be nice but firm. Has anyone had a similar problem with Cap 1?
Otto No I did not tell them about the mortgage. I gave them a song and dance on why I would settle to get rid of it but only if it was worth my while. I told them it is not worth my time to reset the clock when it will be removed in one year regardless. They supposedly are sending me an agreement to settle on the 40% because I told them I want it in writing. I felt like I could use the time to my advantage also since they will want to settle quicker than I do. What I thought I would do is when I get their letter agreeing to settle, I will respond with a letter saying that I agree to this figure but only if they send me written proof that they will delete from all 3 CRA's. FHA would only require me to show the debt was paid so technically I do not have to have it removed from the CRA's to qualify. However, for obvious reasons I do not want to let them reset the clock and have to fight later to have it removed. I was just wondering what methods others have used in this situation to get results.
