BOA Credit Card Settlement

You have a lot of questions and really sound concerned. I can't really provide many answers, but I do understand where you are coming from. My husband and I recently started down the settlement path ourselves.

In our experience, it really hasn't been as scary as I anticipated. Did my score drop? Yep ...but not as drastically as I feared. Does the phone ring ALOT? Yep ...but most people seem to be pretty understanding. You do get tired of telling your story over and over though.

We are right around 120 days late on most our cards. Some we hardly ever hear from (Capital One and GE Money), some are fairly infrequent (Chase and BofA), and one in particular is downright annoying in the frequency of calls (Discover). We have already started receiving settlement offers, but haven't been offered one we can take yet.

It sounds like you have decent credit. The 0% and 3.9% offers will likely go away if you go this route, so be prepared. If you have good credit and can avoid settlement, I would protect it. But in our case, we struggled every month for two years to make our minimums. I stayed on time, but recent job losses burst that for us. Its actually been a bit of relief. That tight rope we were walking every month was getting tiring.

Good luck!

The reason that Countrywide/BofA will not change your HELOC to a line of credit is because they have secured collateral right now. They can get their money back when your home sells. If they changed it, they couldn't. Make sense?

Yes, short sale and settlement is much better on your credit than bk. With bk, for the rest of your life when you apply for credit, a job, anything, you legally have to check the bk box on the app. It never goes away. Takes a 7 year credit hit, but doesn't go away.

I can help you get the cc debt settled. You could possibly settle yourself, but how would you know if you were getting a good deal. Do you know what wording you need to settle with that will not impact your credit? As long as you keep paying timely interest payments, they will not be willing to settle with you. Does that make sense? Why would they settle if they're getting everything they want?

You are asking about Ch 7 bk. Have you made less than the median income in your state for the past 2 years? If not, you are not even eligible. MNBA wrote a bill that was introduced and passed in 2005 that makes it much harder for people to file bk.

Do not assume they black ball you!!! :) They want your money for the rest of your life. They are trained to aggressively go after you to get their money and will say most anything to get it. However, once you've settled, they want to get you back. They will send you more offers as soon as you're done paying them off.

You asked if it matters if you do your checking with them - shut your checking acct. w/them. That only gives them more leverage. When you settle, you'll be building up money in your own account and they'll be able to see that and say why should we settle because they have xxx amount in their account. Make sense?

Most credit card companies check your credit every 15-30 days. If you fall behind on one credit card, your mortgage, your HELOC, your car, anything, they will raise your rate. If you call them and tell them you are having a hardship, they can raise your interest rate just for that.

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Thanks for the replies so far! I am aware of why they won't changed the HELOC and also aware that BOA won't settle if I am current with them. I have no problems making my min payments. I owe about 50k with all of my Credit Cards, but as I stated they are all at good rates, except the BOA which just ran out this month. I am questioning whether I should do another 12month 0% BT for all the debt except the 12k at 3.99% for life, so about 40k. The min payment on that would be about $400, plus the $50 min of the for life offer is $450. My house is what is killing me each month. The mortgage+taxes are only about $1200 but with HOA, Utilities, Homeowners Ins, random things that come up, it gets up toward $1700 a month at times. Like I stated, I have been trying to sell it since late 2007 without any success. At that point I was probably only in debt 20 or 25k, not that bad and definitely payable in 2 or 3years @ 0%.

However for the last 2 years I have tried to save my credit and score and keep things going. This is where the rest of the debt came from. Im not trying to claim I don't spend any money and that I am not responsible for any of the debt, maybe 10k or so, but the rest is all this house. Was it worth going into all this extra debt to try and save my credit and credit score, seeing how I am not going to get hit for at least a short sale and settlement on the HELOC??

If I just do the short sale and settlement on the HELOC will I see a major hit and all my good credit card offers disappear? That's the major concern with the high debt and wanting to settle with BOA. Paying of 50k will suck and take me a LONG time to do, but I can consider it at 0%, not at high rates. If they are going to rate jack me as soon as I sell my home then its just not worth it.

I am only 26, going back to school this year or next for a Law Degree and will be on the right path within a few years. I know I can come back from this. Other than this situation, I am quite savy with $ and have a good retirement and have done well with the market and other investments. I am just in a bind short term and am seeking the best way to handle it. I am pretty sure that I make under the median for my state, but don't want to file unless I am forced to. I really only will probably consider it if they don't approve my short sale, as I am in a recourse state and they can sue me.

There is 0 equity is the house so Countrywide has nothing to go after. They are basically saying we would rather a few thousand now, than take a chance on you paying us $50 a month for the next 15 years.

If I am going to get hit and I want to take it all at once if you know what I am saying.

Also if I did settle with BOA, I would have to go about 130-150days PD to get a 20% settlement from what I have read on other posts about them. Is it wise for me to just stop paying them? Also I am current on all my other min payment which I am sure they will know. However they are are $20-$50, while BOA is 400. Can I except that even if they do settle that I will get all of my other cards closed? I don't want to lose all my credit, simply because I have a good history other than this and can repair it, rather than start from scratch with none.

I know to some this may not be as bad as there situation. However at 26, this is a massive amount of debt for me. The prospect of just starting back at square one is a welcome one.

Thanks again for all the replies. Let me know what you think.

hi there, think about this. Most of us are on this message board either because we had or have good creidt. You cant settle these debts without damaging your credit in the short term. So what if you end up with numerous 30, 60, 90 day lates on your credit. I understand and i am also hooked like you into maintaining my credit score

If you think about it, the only way to maintain your credit is to pay the bills. Anything else WILL damage your credit (lates, DMP, settlement, bankruptcy). At some point you have to decide what is more important...getting out of debt or worrying about a credit score. For the record, if you have high debt, even if your current, your score is in the shi**er anyway! Trust me, I'm going through it as well.

Thanks for the replies. I understand why most people are here. I have learned a lot throughout this process, and while it is not worth the price of admissions, at least I will take a lot of lessons away from it. I am looking to see what everyone thinks, I have an update on my situation and have some questions.

I am now farther along in the process with the process of selling my home, the catalyst of all of this and the one the I need to get rid of to start over! The mortgage company is now in the process of approving a Short Sale price, I believe they are going to agree to the Short Sale, which is a huge step, although I am not counting on it until I see it in writing! I should be out of here in just a few months which would be great! Countrywide refuses to change the HELOC to a regular Line of Credit, but in the end is willing to settle for about 3k on the 15k owed which seems like a great deal to me at 20%. Any thoughts on that?

My main concern is the BOA CC, I owe about 32k on. I have 2 cards with them, one with like 2k on it that I am going to keep paying on and have no interest in settling. I owe a few thousand on a few cards outside of the 32k but want to pay on them. I am hoping to maintain a good relationship with the rest of my creditors. I made a stupid mistake when I transferred part of my HELOC to this BOA card (the 32k) to take advantage of the 0% interest. Not realizing that I would be transferring it from house debt to a personal guarantee on the CC and also losing the tax deductions. Once they froze my HELOC in early 08 I was screwed and thats where I am left now. So the question remains do I just stop paying BOA for 120-150 days and hope they offer me a good settlement? I cant see doing the short sale, including the HELOC settlement with Countrywide/BOA and not taking care of the 32k credit card around the same time. Otherwise the interest will kill me on it and I'll struggle to pay that 32 off over the next 30 years. So whats the best route?

As I already stated, I will pay off my other cards and hope they don't shut me down. While I know my score will drop, I'd like to maintain some of the longevity of some of these accounts of 10 years. Will BOA still settle if I owe other creditors and pay them? The minimums on those cards are only $20-$50 and I only owe between $1000 and $5000 so much more reasonable.

Also I have 12k on a 3.99% for life offer. If I do all of this will I be able to keep that. Another words, even if they tell me they are going to close the card, can they jack my rate if I don't pay them late. Its a Juniper account, anyone know if they do Universal Default or if they must keep letting me pay them on that offer as long as I don't miss any payments with them?

My ideal goal is to minimize the damage, I know I am going to get hit, just want to limit it. From my understanding, the biggest hit people take on short sales is from getting hit at 30, 60, 90, and 120 days from all the late payments. I don't have any late payments. Can anyone say whether this will help my score a lot vs if I had the short sale and all the late payments?

Here is the best scenario I see:
Short Sale on House
Settlement on HELOC 15k, settle for 3k
Settlement on BOA 32k, settle for 6k

This would leave me 12k @ 3.99% and free and clear to start over.

I know its a long post, but its all complicated lol, as I am sure everyone's situation is.

I feel your pain, but I can speak from experience on BofA. They tend to view accounts with them as a whole rather than separately. I was struggling for a while trying to keep up with debts after hours at work were cut (was later laid off, so didn't matter anyhow). During that time I was trying to 'do the right thing' and had plans/ hopes of paying off all my cards. I had one BofA card with a low interest rate and in good standing, but a second BofA card I was late on a time or two and therefore higher interest. I was struggling to keep up with my minimums, so I thought I was doing the honorable thing by calling them and explaining my work situation and asking for a reduced interest rate to help me get everything caught up. They said no and the next thing I knew, both accounts were closed. At that point I had no choice but start down the settlement road. Now I am glad I did, as I would have been in the same boat for YEARS. Yes, it hurt my credit, but for MY circumstances its been ok. So be careful if you have multiple BofA accounts. What you do with one might affect the others.

Thanks for the input. I am not so concerned with my 2nd BOA card as I only owe about 2500 on it can pay that off so avoid having them rate jack me on that balance. I am more concerned with settling the 32k BOA card and how that will effect my score, my relationships with other creditors and my 3.99% for life offer that I will continue to pay on with another creditor.

Also how do I do settlement, Ive been reading a lot and it seems like I would simply stop paying them and say no to any settlement offers until 130-150 days when they would offer 17-20% settlement??

Was in a similar boat, not the house situation - I can tell you this - any deals, DMP payment 0% interests all effect your credit. STOP paying everyone and save for settlements. Don't use any company and do it yourself. I settled almost 95% of my 120,000 worth of unsecured debt for low %. Quit paying and get your hands on any amount of cash you can.. BOA settled 60,000 worth of debt for 12,000 in my case. I was up front with them and they sent me to Take Charge America and they even said go BK. So there is my 2 cents worth. Quit paying and save and ask family for $ and settle.

I am finally to the point where the companies are starting to offer settlements. Today, AMEX started with 33%, payable over 6 months. I have countered, at the suggestion of the agent, for a 12 month time frame. Since they are one of my lowest balances, I did not want to interfere with my future cash flow. From what I am reading, 33% with AMEX is pretty good. Plus, the agent told me to hang tough with the bank cards and not offer more than 10 to 15 percent. I don't want to get ahead of myself, as I haven't seen this in writing yet.

I have also talked with a B of A person. Their first offer is 50%. I obviously declined and countered (basing my counter on what the AMEX lady told me). B of A said that I need to get legal counsel (an obvious reference, without actually saying it, to getting sued...as I understand things, they can't legally threaten to sue unless they actually intend to do it). B of A is just at 90 days right now, I am assuming this was a scare tactic.

any update???

I actually have an update as of today. I found out that I will probably be getting laid off again next month! I feel as though thats made me make a few decisions in regards to my next steps. I am still waiting on the bank to give me an approved short sale price, been waiting since early Feb on that part alone. I have been trying to save my credit as I have already stated above since late 07 when I first put my house on the market. I am still current on everything. I feel with the current job loss that will be occuring I should stop paying the mortgage and save the $1200 a month. It will take them at least 6 months to foreclose to the point where I would need to leave and some are seeing a year +. Irregardless I don't want to be here and have been trying to move anyway. I have no choice at this point to take care of myself, not the bank and my credit. I am unsure how to proceed with BOA on the Credit Card Settlement. I am still current on all my cards. I am worried about how to go about things without geting sued since its just over $30k. I have read A LOT of the posts on here regarding settling with BOA yourself and am still unsure about some things. Some people say they called and explained things right away, others didn't. It seems like 130-150 days is the magic # for a 15-20% settlement which would be ideal for me. Do I just stop paying and wait and see what happens? Is there no way to know what they will do and when?

Also a few other questions no one has answered specifically. The card that I have with a balance on it at 3.99% for the life of the transfer. If I keep current with them, do they have to continue to honor this. Even if they close my account will I still be able to pay them each month till its paid off with that 3.99% rate? As Ive stated I am only trying to get rid of the debt on the mortgage, Heloc, and one BOA card. I will pay everyone else off so long as I can opt out of any increases due to the mortgage short sale/foreclosure and BOA CC settlement.

Also will all my cards get closed or will I still be able to keep some that I pay on? Does anyone have first hand answers or experience?

If my girlfriend adds me as an Auth User on her card, will she be effected at all by my credit?

Thanks for everyone's help. I look forward to replies on the update. I feel like if I am going to be resigned to stop paying and banking the $ I can will still working and then from unemployment that things wont be so bad, that its more mental. If I can afford to feed myself and be healthy each day with some cash in hand, then the credit score get smashed won't really effect me. Let it also be known that I have no intention on buying another house or a car anytime in the next 5 years either. Thanks again!

clovisca- that's a good settlement % from Amex, how many months were you past due? is it with CA right now? if so, which CA?

Any further advice on the update I posted above?

Can anyone offer any further advice on the long update I posted above. I am just about to miss my first Boa payment.

Congrats to those of you taking control of your credit card debt settlements. I helped a family member settle 10 credit card accounts with $140,000 in balances for $39,000 (about $0.28 on the dollar). Posted the stats at debtsettlementpros . org

This settlement experience got me thinking about settling my own B of A HELOC. Does anybody have a phone number that can help cut through the wait times and get to the right department that actually controls decisions regarding HELOC settlements?

Try this number: 1-888-328-9458. Tell them you are trying to reach the "Proactive Account Review Department"

Try this number: 1-888-328-9458. Tell them you are trying to reach the "Proactive Account Review Department"

Try this number: 1-888-328-9458. Tell them you are trying to reach the "Proactive Account Review Department"

Why are you trying to do a short sale? You are out of work stop paying all your debt now. Live in your house and let the foreclosure process begin. Start thinking bankruptcy, you should be able to stay in your house for a year.

I settled with BoA in three payments in writing. I made the first payment. Second payment is not due yet, but I keep receiving call from FIA for the payment? What do they do that for? I'm affraid they would not honor the settlement after I complete the payments as agreed. Can they do that?

Any further update on your situation Mcc200999 ?

888-328-9458 and 866-866-7003 are FRAUDULANT #'s!!!!!
B of A will NEVER ask you your Acct. #!!! Don't give these people any info!!

Notice, ask them is this for my Wachovia acct. and they say, uh... i don't have your account info! That is when you'll know, cause the email came from a fraudulant b of a.

Everytime I call B of A they now ask for my full account number. They also gave me the 888-328-9458 # as a direct line to call back on. I haven't called it yet.

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