Settlement of Debt
Date: Fri, 02/06/2009 - 13:19
Hi everyone - first time on this forum but I am hoping to gain some good advice. We have a Lot loan in a development where the developer filed bankruptcy. Our lot is worth approximately 10-20K while the loan is 161K. We are up to date on all payments but based on how far the lot is under water we cannot justify paying this much money for the return.
Instead of going into default we are trying to work with the bank to reduce the debt. The bank has asked us to fax in an offer that they will assess and make a decision on. The thing that concerns me is that the bank has said any reduction in debt would be listed as debt settled and not paid in full.
How badly will debt settled impact our credit? I appreciate any insight.
Instead of going into default we are trying to work with the bank to reduce the debt. The bank has asked us to fax in an offer that they will assess and make a decision on. The thing that concerns me is that the bank has said any reduction in debt would be listed as debt settled and not paid in full.
How badly will debt settled impact our credit? I appreciate any insight.
Debt settlement can negatively affect your credit significantly.
Debt settlement can negatively affect your credit significantly. I read somewhere that debt settlement can decrease your score by 200 points.
