Re: Settlement and buying a home
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Posted by LadynRed
(199.91.33.254) on January 23, 2003 at 12:46:57:
In Reply to: Settlement and buying a home posted by Switzer on January 23, 2003 at 12:09:59:
The mortgage lender would force you to pay off any old charge-offs anyway. You can do settlement, but when you do so, only agree to settle IF they agree to change the entries on your credit report to 'paid as agreed' or at the very least, 'paid'. Anything else is bad news for your score. Its going to take a lot of diligence and patience and certified letters, but you can get there. You should also get a 1099-C in return for payment, that will totally close out the debt and it cannot be resold after that. You WILL pay income tax on settled debts over $600, but if your tax bracket is low, that may not impact you all that much. Are any of these accounts close to dropping off your credit report ? How old are they ? If they have some age on them, you can try disputing with the credit burueas. If the accounts are old enough, the CRA's may not be able to verify with the original creditor and they'd have to remove the entries completely. I'd start there. If you can't get any removed, work on settlements. Start your offer % low enough to give yourself some negotiating room. As for loans - you may want to try for an FHA loan as it is my understanding they are not score-driven.
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