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I settled BofA today

Date: Fri, 08/07/2009 - 13:24

Submitted by ball_mich
on Fri, 08/07/2009 - 13:24

Posts: 360 Credits: [Donate]

Total Replies: 20


I know I like to read success stories when available, particularly with the same creditors that I am working with. So here is one to share with others...

BofA settled today for 25%, payable over 3 months.

I'm actually kind of kicking myself, as I think I could have gotten them lower, but at the same time, good to get this one behind me. It was my largest balance.

Anyway, this one came out of the blue a bit. I haven't been speaking to BofA as frequently as other creditors. I've really been focused on trying to settle Wells Fargo and Citi, but BofA called me up and made this offer and I decided to run with it. Wells and Citi aren't moving much. And Discover, they have their heads stuck in the sand.

So hooray for me. That makes two settlements in total, with my Wells Fargo HELOC loan being the first one.

Good luck to all.


Quote:

Congrats on the settlement, I am interested in the heloc deal you made. I thought the heloc was secured to your home, so in order to settle what did you do? Any info would be appreciated.


There's a thread over in the mortgage related forum called "Settlement of Mortgages", where I've posted quite about about my HELOC settlement. I pretty much gave updates all throughout the process.

But yes, the HELOC was secured by a property that is in foreclosure. The home is going to foreclose this month, according to the notices that I have. But I wanted to settle the HELOC loan because I think they were going to sue me for a deficiency judgement. It was actually kind of a gray area, but it did not appear that I was protected from a deficiency judgement under California CCP, so I wanted to be certain I wouldn't get sued. Wells seemed to think they could get a deficiency judgement an alluded to as much on some phone calls.

Anyway, because the 1st mortgage was foreclosing and they were taking their time, the HELOC charged off in June. Once it charged off, they got very active in settlement discussions. I settled my $27k balance at 17%. I've heard a lot of people settle for less than 15%, but in most cases I think it depends if they can seek a deficiency judgement against you... and that varies by state and by situation.


lrhall41

Submitted by ball_mich on Fri, 08/07/2009 - 17:17

( Posts: 360 | Credits: )


Also, this is sort of interesting about my BofA debt...

It was a balance transfer. A lot of creditors will tell you that they won't settle balance transfers, or won't settle for as low as other charges... But this was 100% a balance transfer. In fact when I stopped paying BofA, I was still within the 12 month introductory 0% period. I think maybe 9 or 10 months through...

Just an FYI for people where creditors are telling them they can't settle the debt because it was a balance transfer.


lrhall41

Submitted by ball_mich on Fri, 08/07/2009 - 17:43

( Posts: 360 | Credits: )


thanks for clarifying that ball mich, cause my situation with BOA is the same. I have about 17k of balance transfers from a year ago and the 0% just ran out. I was a little worried that they might give me grief about that when I ask to settle.
Thanks for posting.


lrhall41

Submitted by on Fri, 08/07/2009 - 18:38

( Posts: | Credits: )


Quote:

I am new to this site and I have question. Are you settling these things yourself? Are you ever going to try to get a home loan in the future and do you think you'll be affected by this on your credit rating? I'm quite impressed!


Yes, I'm going it myself.

Certainly I will have adverse reporting in my credit report that will hurt my credit score (I already do). There's no way to avoid that. But it doesn't last forever, and for those that have no other choice, the credit score impact is inconsequential.

Also, settling your debt can be done on your own. It's not easy though. Not that it's hard either, but there are trials and tribulations through the whole process. Some days you talk to collecters who are really rude and it can ruin your day. Other days you talk to understanding folks and you don't feel so bad about it. And it takes a long time... for me 180 days. That's about 180 days of phone calls, letters, embarrassing answering machine messages, people at my house wondering why I won't answer the phone in front of them, etc. It is what it is, and now that I"m seeing the fruits of my labor, it's well worth it.


lrhall41

Submitted by ball_mich on Sat, 08/08/2009 - 13:41

( Posts: 360 | Credits: )


I just recieved a letter stating that my debt with BofA is about to be charged off.

I owe $1,050 dollars to them. i am on unemployment. Do you think they would accept an offer of 15%?
Are they less or more likely to settle for a smaller percentage if you have a smaller balance?


lrhall41

Submitted by on Sat, 08/08/2009 - 19:12

( Posts: | Credits: )


Quote:

Did u contact them or did they contact you with the offer?


Both. I've been careful with my creditors not to be the first to bring up settlement, as I didn't want them to think that's what I was angling for. But once they brought it up, I made offers on the account (verbal, faxed, and through the mail).

However, the offer that I accepted to settle this BofA account, was the result of an offer they made to me in a phone call.


lrhall41

Submitted by ball_mich on Tue, 08/11/2009 - 16:08

( Posts: 360 | Credits: )


Quote:

So what was the hardship that you told BOA in order for them to settle. Are you unemployed, company cut backs, took a job for less pay?


I just explained my circumstances, that's all. I'd rather not spill my entire hardship, just for personal reasons, but it's similar to that which a lot of people are going through.

I think one of the most important factors is that I'm always consistant with what I say. I feel like a broken record. But I do think it's helped. Although, hasn't helped me to settle my other creditors yet.


lrhall41

Submitted by ball_mich on Wed, 08/12/2009 - 09:46

( Posts: 360 | Credits: )


Quote:

Originally Posted by ball_mich
I know I like to read success stories when available, particularly with the same creditors that I am working with. So here is one to share with others...
BofA settled today for 25%, payable over 3 months.
I'm actually kind of kicking myself, as I think I could have gotten them lower, but at the same time, good to get this one behind me. It was my largest balance.
Anyway, this one came out of the blue a bit. I haven't been speaking to BofA as frequently as other creditors. I've really been focused on trying to settle Wells Fargo and Citi, but BofA called me up and made this offer and I decided to run with it. Wells and Citi aren't moving much. And Discover, they have their heads stuck in the sand.
So hooray for me. That makes two settlements in total, with my Wells Fargo HELOC loan being the first one.
Good luck to all.

I haven't talked to any of my creditors in like 8- 12 months. My smallest c.c. debt is in the process of going for a judgement. I believe that if I can have the success you had, I might get my B of A. - HELOC that is at 35k to agree for say like 20 ish% than I might be able to get after my chap.7 instead of the 13. Any more info on what to say or how to say it would be very much appreciated. I've held off past 180 days but im not sure if they charged it off yet.. In your opinion am I headed in the right direction? Attorney has been on retainer since like last Oct.


lrhall41

Submitted by on Sat, 08/28/2010 - 08:04

( Posts: | Credits: )


I haven't talked to any of my creditors in like 8- 12 months. My smallest c.c. debt is in the process of going for a judgement. I believe that if I can have the success you had, I might get my B of A. - HELOC that is at 35k to agree for say like 20 ish% than I might be able to get after my chap.7 instead of the 13. Any more info on what to say or how to say it would be very much appreciated. I've held off past 180 days but im not sure if they charged it off yet.. In your opinion am I headed in the right direction? Attorney has been on retainer since like last Oct.


lrhall41

Submitted by on Sat, 08/28/2010 - 08:06

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