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Question By
jeffv0802

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question about charge off and settlement
I use to have a credit score of 810. Now its 527. I had a house that I bought and used a credit card to fix up. I ran up a balance of about 17k total. To make a long story short, I rented the house out and got screwed out of rent by three tenants in a row. I could not pay the mortgage or taxes on the house and am currently doing a deed in lieu of foreclosure. I could not service the debt on the CC without incoming rent and now its 7 months past due ready to charge off. The bank said the lowest settlement that they would take is $4500. I only have $3500 saved from an old tax return with no hope of getting any more funds. 1. Will a third part collection agency settle for less than the bank? 2. Will settling with a third party agency hurt my credit much more than settling with the bank?

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Work with the bank on an initial lump sum payment and a payment schedule that you must ensure you meet.  One can never tell what one credit colleciton firm will do over another.   You do not want to the bank to pass it off to another firm if you can stop it.   They have already reported the failure.   For it to go to another firm, who could report the same debt again increasing the damage to your report even further.

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