I have 8 accounts in collection and some are charged off. I have been in this situation for approximately a year and I had pretty good credit prior to this. One account now reads as "Pays account as agreed" because I have settled and one more should appear this way soon. This totals 10 accounts. The following are some questions I have in regards to Settlement and Validation. 1. Is it worth it to continue settling even though an account is charged off? 2. Will it improve my FICO score of 530 or so? 3 How many points will I gain from settling and how long will it take to obtain these points? 4. Is it better to just pay more interest if I obtain a high interest home loan than to pay down the remaining balances? 5. Will Validation help with accounts that are already charged off? 6. Is it possible to remove the items that have been settled with Validation? Someone please help!!
1. Is it worth it to continue settling even though an account is charged off? --YES, (and any type of collections TL's are never good on a CR) 2. Will it improve my FICO score of 530 or so? --NOT BY MUCH--Some say it's better to get it deleted altogether--if it's an old charge-off, let it fall off. 3 How many points will I gain from settling a)and how long will it take to obtain these points? --Again, probably not much if any --usually within 30days, or whenever the OC updates; 4. Is it better to just pay more interest if I obtain a high interest home loan than to pay down the remaining balances? --I am unsure what you mean by this....do u mean other debt balances or the mortgage balance? If you mean the mortgage balance, than you'll need to pay both interest and principal regularly, and pay down EXTRA towards the principal anytime you have extra. Send the mortgage holder a SEPERATE check each time and put in the memo in bold capital letters "APPLY TO PRINCIPAL". By making one extra payment this way per year, you can knock about 13 yrs off of a 30 yr mortgage. Imagine what more can do 5. Will Validation help with accounts that are already charged off? --YES, if they cannot validate they have to DELETE. You may luck out. Always begin this way, and play it out. Most banks only keep records on file for 5 yrs as required by law. 6. Is it possible to remove the items that have been settled with Validation? -YES, but remember your objective here is to hope that a CA/OC can either NOT validate or they walk into 1 or more violations of the FDCPA and/or the FCRA for you to use as leverage to get a reduced debt settlement and/or deletion. The $1000 x no. of viloations must far outweigh the total debt you are trying to negotiate. Most folks don't really want to bother with actually suing. That is the purpose to cross validate/dispute with the CA/OC and the CRA's.
Hi, To clarify the question about the mortgage: If I had sum of money to use for either a down payment (home) or for settlement, which way should I go? Obviously the interest on the mortgage would be over 9% with my score of 550. I could eventually refi at a lower rate. You did mention my score would not improve much after settlement and to let the charge offs just drop off. I guess settling won't improve my score that much so I should stick with using the sum of money for a down payment or buy points to reduce the interest rate? I hope this clarifies my question. Also, do you think a credit repair service would help and to what extent? How long would it take?
A couple of important points: 1. If the collection accounts or charge offs are less than a year old, I would be careful. By asking for validation you may wake up a sleeping monster. They may decide to come after you for the account balance (law suit, new ca, or?). 2. Before issuing a mortgage I believe all lenders will require that any unpaid accounts be paid. There may be a way around this, but it isn't likely to be easy. A mortgage broker could give you a better answer. Having a tradeline marked settled may not help the CR much, but it will increase your ability to get a mortgage.
1* One account now reads as "Pays account as agreed" 2*because I have settled 3*. Is it worth it to continue settling even though an account is charged off? 4* Will it improve my FICO score of 530 or so? 5*. Is it better to just pay more interest if I obtain a high interest home loan than to pay down the remaining balances? 6* How many points will I gain from settling and how long will it take to obtain these points? 7* Will Validation help with accounts that are already charged off? 8*. Is it possible to remove the items that have been settled with Validation? 9*If I had sum of money to use for either a down payment (home) or for settlement, which way should I go? Obviously the interest on the mortgage would be over 9% with my score of 550. 10*I guess settling won't improve my score that much so I should stick with using the sum of money for a down payment or buy points to reduce the interest rate? 11*Also, do you think a credit repair service would help and to what extent? How long would it take? meganet3 ====================== 1*You can't have a paid as agreed collection. If you had paid as agreed it would not have gone to collections. 2*A settled or paid collection is worse than an unpaid one. 3*No because you can't buy your way out of a bad credit report by simply just paying the debts. 4*No but it will help keep it lower longer. 5* 6*You don't gain by just settling you loose. 7*Yes it can help. 8*That's the idea. 9*Like i said you can't simply just buy your way out. 10*Where you gonna get the loan if you have bad credit.? 11*FixYourOwnCredit! http://consumers.creditnet.com/stra...848&highlight=fix+AND+your+AND+own+AND+credit """"""""""""""""""""""""""""""""""""""""""" '''''''''' `````````` '''''''''' THE END ** *** ** LB 59 """"```--~~~~~~~~~--```'""'''
