Posted on: 24th Oct, 2008 09:07 am
My first is out of foreclosure due to a loan modification. My 2nd has been charged off. I spoke with the collection company and they said that we can either make a payment plan or offer a lump some to settle the account and release the lien. My main question is, did the collection company buy this charge off for pennies on the dollar? What is an acceptable offer? I owe $80,000 on the 2nd, can I offer like $40,000 to settle the account? I just hate to offer too much and shoot myself in the foot.
hi check!
welcome to forums!
the purchase price of the mortgage depends on the collection agency and the original lender. you can place your offer in front of the collection agency and see what they have to say in this regard. however, i would suggest you to go for an alternative payment plan through which you will be able to pay off the second mortgage. this will have a low negative effect on your credit.
feel free to ask if you have further queries.
sussane
welcome to forums!
the purchase price of the mortgage depends on the collection agency and the original lender. you can place your offer in front of the collection agency and see what they have to say in this regard. however, i would suggest you to go for an alternative payment plan through which you will be able to pay off the second mortgage. this will have a low negative effect on your credit.
feel free to ask if you have further queries.
sussane
Hi check!
In my opinion, it will be better if you can go for the payment plan offered by the collection agency. By this payment plan you will be able to clear off the debts slowly. This will also lower the negative effect of charge off in your credit report.
Thanks.
In my opinion, it will be better if you can go for the payment plan offered by the collection agency. By this payment plan you will be able to clear off the debts slowly. This will also lower the negative effect of charge off in your credit report.
Thanks.
Hi Check,
Frankly speaking it's hard to say at what price the collection agency bought the loan from your lender. How much you need to pay the collection agency depends upon how well you can negotiate with them. Since you owe $80,000, I don't think the agency will agree to be paid off half the amount. I mean it's too low compare to what you owe. But you can at least start the negotiation.
I understand you may have financial problems but a lot depends upon what the agency is willing to accept. However, when you settle the charged-off debt, see that the status of the debt is updated in the credit report as "settled charge-off". You need to ask the collection agency to report it to the bureaus or you may yourself communicate with the bureaus.
Hope this helps...
God bless you.
Samantha
Frankly speaking it's hard to say at what price the collection agency bought the loan from your lender. How much you need to pay the collection agency depends upon how well you can negotiate with them. Since you owe $80,000, I don't think the agency will agree to be paid off half the amount. I mean it's too low compare to what you owe. But you can at least start the negotiation.
I understand you may have financial problems but a lot depends upon what the agency is willing to accept. However, when you settle the charged-off debt, see that the status of the debt is updated in the credit report as "settled charge-off". You need to ask the collection agency to report it to the bureaus or you may yourself communicate with the bureaus.
Hope this helps...
God bless you.
Samantha
in the current climate, negotiated settlements are very common. i would recommend that you consult an attorney about the feasibility of bankrupting away any personal liability you have on the note and if this is not possible then i would hire a debt negotiator to settle the debt for you. after 12 years of loss mitigation and short sale experience, i do not agree with others who have commented that you would not be able to get a significant discount. i would attempt to legally remove all personal liability on the debt first, if possible, and then negotiate for a lien release settlement. i have personally settled secondary liens of $26k for as little as $1k given the right corcumstances. best of luck.
Hi J Peterson!
Its great to see people with so much of experience and knowledge participating in this forum. I hope you will participate regularly in this forum and share your knowledge with the community members.
Thanks,
James.
Its great to see people with so much of experience and knowledge participating in this forum. I hope you will participate regularly in this forum and share your knowledge with the community members.
Thanks,
James.