Full & Final Settlement's

user051105

I am considering writing to my 2 creditors who I defaulted with nearly 6 years ago and 1 company that I defaulted with 2 years ago.

We need to get a mortgage and these really need to be paid off and showing as satisfied as we also need a 100% Mortgage.

So has anyone got any advice on what to offer for a full and final settlement is 40% a good realistic offer.

The Companies Involved are

Lowell Finnacial Portfolio - £546 - Offer £213
Lowell Finnacial Portfolio - £346 - Offer £135
Vodafone PCS - £126 - Offer £49

This is really the maximum I can use, should i offer 35% and if rejected then go for the 40%. Or is this going to open a can of worms with these companies and them demand the full amoun then if not paid take me to court as that would really screw up any mortgage chances.

I have a letter wrote and wondering what to put in the following section

I can confirm that I am unable to offer to pay the money which I owe in full (Add details of your circumstances and financial situation).

As this is what is confusing me, what to write in the circumstances, do i mention that this my savings and I all can offer or that a relative has offered this cash but only offer valid for 28 days.

Any help would be much appreciated.

file_wizzard

The answer is twofold,

if it is nearly 6 years ago then the debts / Default marks will naturally expire from your credit file 6 years and one day after they were entered.

With regards to making full and final offers the best way to do this is via a 3rd party saying they have raised X amount and are willing to bail you out.

if a 3rd party "Pays" on your behalf and the creditor accepts then the creditor has no further recourse for future litigation / recovery, However if you pay a short settlement directly even with the words FULL & FINAL they can and will come after you for the rest at some point in the future

user051105

What will happen to the amounts outstanding then, after June 22nd can they affect my abiltity to get a mortgage or credit.

The mortgage is the main thing i need to concentrate on and any chance of this being an 100% One.

Cheers for your help

file_wizzard

user051105 wrote:

What will happen to the amounts outstanding then, after June 22nd can they affect my abiltity to get a mortgage or credit.

The mortgage is the main thing i need to concentrate on and any chance of this being an 100% One.

Cheers for your help

You will still "owe" the money, however after the 6 years is up then the information will expire from your credit file.

Additionally providing you have not paid anything or acknowledged the debts in the last 6 years then they will also become "statute barred" which basically means the creditor has no legal right or ability to chase them any further, in simple terms they are written off by law.

with regards to a 100% mortgage I don’t know of any sub-prime lenders that will do 100%, most will do 90 - 95%

However if you are in the situation where two of the defaults expire this year, and the 3rd is still on your file you can raise a notice of dispute with the relevant credit reference agency for the 3rd debt, if the lender fails to respond to the CRA within 28 days then the entry will be "suppressed" from your file, i.e will not show on any searches, it can of course be reinstated by the lender if they respond at a later date, however you may be able to use the window of oportunity to your advantage.