BOA agreed to settle my second loan with $26000 from $126000 that we owe. My loan accout was charged off due to not being paid and now I want to settle so that I can get off the second loan and keep my home .( Initially I planned to foreclosure).
Currently my credit history is showing as
"ACCOUNT/Charged off as bad debt"
"Bad debt & placed for collection & skip"
on 3 credit reports
1. BOA mentioned that after the payoff . It will update the credit report to Settled in full . Will this be ok ? or is there any other that we can negotiate with them.
Note :I plan to refinance my first loan after this process completes. Not sure if this will happen .Just want to try.
2.They mentioned that they will be reporting to IRS.Will this amount be considered as income and be taxable.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.