Key Bank (private loan) defaulted, need info
Date: Mon, 02/28/2011 - 06:27
Hello-
I have read much of the information here, and before I even start, I would like to thank "Soap Lady" as just from reading the other posts I have learned much.
Here is my situation. I have private loans with key bank that have just recently gone into default. I realize that I cannot call the collectors and settle for pennies on the dollar, which was my first hope before I found this forum.
Here are my questions:
1) My mother is the co-signor on the key bank loans. She has already told me that she will pay off my bad debt and allow me to pay her back with interest over time. My question is does it make more sense for her to call (or for me to call, or does it not matter?) Key Bank directly and make a settlement offer?
The only reason I ask this is, my thinking is if I start dealing with the people at the bank, they know I don't have a job or any real money. My mother has both a job and money. So, if I made any deal wouldn't they just try to get more out of her anyways? That it is why I think the best way to do this is for her to call Key bank and just say that as the co-signor she just wants to settle the loan. (does this course of action/thinking make sense? Is there something better or different that would work better?)
2) What would a good settlement amount be? The original amount that I borrowed was around $28k, and now the balance is around $38k not including collection fees. I understand that they do not forgive principle, so would the best settlement be just for what I originally borrowed? What should I be happy with?
Thanks in advance for helping me with my questions.
I have read much of the information here, and before I even start, I would like to thank "Soap Lady" as just from reading the other posts I have learned much.
Here is my situation. I have private loans with key bank that have just recently gone into default. I realize that I cannot call the collectors and settle for pennies on the dollar, which was my first hope before I found this forum.
Here are my questions:
1) My mother is the co-signor on the key bank loans. She has already told me that she will pay off my bad debt and allow me to pay her back with interest over time. My question is does it make more sense for her to call (or for me to call, or does it not matter?) Key Bank directly and make a settlement offer?
The only reason I ask this is, my thinking is if I start dealing with the people at the bank, they know I don't have a job or any real money. My mother has both a job and money. So, if I made any deal wouldn't they just try to get more out of her anyways? That it is why I think the best way to do this is for her to call Key bank and just say that as the co-signor she just wants to settle the loan. (does this course of action/thinking make sense? Is there something better or different that would work better?)
2) What would a good settlement amount be? The original amount that I borrowed was around $28k, and now the balance is around $38k not including collection fees. I understand that they do not forgive principle, so would the best settlement be just for what I originally borrowed? What should I be happy with?
Thanks in advance for helping me with my questions.
I would suggest offering them $25k or even $22k. You need to ca
I would suggest offering them $25k or even $22k. You need to call them, not your mom. Be vague with the source of the money. PLUS I would also suggest calling late in the month. A lot of this would depend on the accessability of the cash for your mom. If it is readily available, I would call during the last 3-4 days of the month....."I have cash in hand and I will overnight a cashiers check to you. I need you to fax a settle letter to xxx-xxx-xxxx" You need to control the call. At the end of the month, collectors are scrambling to reach their monthly goal. I would have jumped thru hoops for a $25k payment at the end of the month.
