Final Settlement

ickyxxx

Hi Everyone,
I was wondering if someone could help me urgently. I need to clear the defaults from my credit file so that I can get a mortgage. I am in about £30,000 in debt with loans, credit card, and comet. These were taken out 4-5 years ago when I was married. Then I got divorced, went ill, depressed and have been paying token amount to the six debtors for the last 3 years.
Now I am beginning to get on my feet and am interested in buying a house. My credit file shows 6 defaults. The motrgage company is willing to give me a mortgage on the condition that the debtors take off the defaults by settlement.
Please advise.
Regards
Ickyxxx

Let_Robinson_Sing

ickyxxx wrote:

Hi Everyone,
I was wondering if someone could help me urgently. I need to clear the defaults from my credit file so that I can get a mortgage. I am in about £30,000 in debt with loans, credit card, and comet. These were taken out 4-5 years ago when I was married. Then I got divorced, went ill, depressed and have been paying token amount to the six debtors for the last 3 years.
Now I am beginning to get on my feet and am interested in buying a house. My credit file shows 6 defaults. The motrgage company is willing to give me a mortgage on the condition that the debtors take off the defaults by settlement.
Please advise.
Regards
Ickyxxx

A few things to do firstly.

Post your SOA (statement of affairs) on here so that the experienced DFW's can help with cost cutting etc.

Right now you need to get settlemt figures of your creditors. ok so say that five debts of the same amount so thats £6000. Keep an offer in your head of £2600 then contact each creditor and get a settlement figure sent out in writing to you. after you've got these settlement figures then call the creditors offering them a settlement figure of your original amount (£2600) if the person on the phone says that they wont accept say that you cannot afford anything more then insist on writing to the creditor with your SOA and offer in black and white and state that if they dont accept you will look into a DMP with CAB or CCCS. scare tactic as they know it will take ages for them to get the payment. (you know that you wont go down that route but creditors wont know this.)

if the creditors dont accept your offer of settlements then use your negotiation skills to get a decent settlement figure but dont give in to an offer of £4800 for a £6000 debt.

I hope i have helped and good luck.

Toto

Let_Robinson_Sing wrote:

A few things to do firstly.

Post your SOA (statement of affairs) on here so that the experienced DFW's can help with cost cutting etc.

Right now you need to get settlemt figures of your creditors. ok so say that five debts of the same amount so thats £6000. Keep an offer in your head of £2600 then contact each creditor and get a settlement figure sent out in writing to you. after you've got these settlement figures then call the creditors offering them a settlement figure of your original amount (£2600) if the person on the phone says that they wont accept say that you cannot afford anything more then insist on writing to the creditor with your SOA and offer in black and white and state that if they dont accept you will look into a DMP with CAB or CCCS. scare tactic as they know it will take ages for them to get the payment. (you know that you wont go down that route but creditors wont know this.)

if the creditors dont accept your offer of settlements then use your negotiation skills to get a decent settlement figure but dont give in to an offer of £4800 for a £6000 debt.

I hope i have helped and good luck.

I have to say Robson, I wish all people who worked for dcas were as kind and helpful as you. You restore my faith. Thanks for being here :beer:

Let_Robinson_Sing

Toto wrote:

I have to say Robson, I wish all people who worked for dcas were as kind and helpful as you. You restore my faith. Thanks for being here :beer:

Thanks very much

i am glad i am helping people

if anyone needs and help on how to deal with DCA'S or "you people" as i get referred to a lot on the phone drop me a PM or ask me something on here.

ickyxxx

Thanks very much Robo

Gliderguider_2

Hi,

In a similar situation. Debts of £25k following divorce and trying to start a fresh.... on an IVA for the last 18 months through (awaits incoming here) Baines and Ernst. I know I need to kick them in to touch, but when divorce was going through they dropped me a lifeline and I took it!

I earn £2000/month and until recently have been paying £600 month to the ex and £200 in solicitors fees! In addition to the £322 to B&E.

Just as I start to get out of trouble I get stung through Autoglass for a £538 windscreen thinking that my insurance would cover it.... have not paid the bill yet, and when I called them to get a quote, following the actual replacement, they instantly offerred me a 30% discount... grrrrrr!

Trying to understand my options.... obviously I could pay them off in 2 years, but if there is any way of negotiating a lower settlement, I would do it in a shot! I would be able to afford a 125% mortgage if my credit rating were not in tatters!

Thoughts... comments?

Cheers

GG

MrsTinks

uhmmm sorry have I missed a page here?
You want help on how to not pay back the full amounts you owe on loans at the moment so that you can take out a HUGE loan (which is what a mortgage is)?
Sorry if this is just me but I'm struggling with finding a lot of sympathy here but I'm just not seeing any lightbulbs even faintly glowing...

Getting on the property ladder with a huge mortgage when you haven't managed to make any headway with your current debts but in effect are looking at something little more than a glorified consolidation loan...

Sorry if I'm misunderstanding something here...

Gliderguider_2

Don't recall asking for sympathy, just maybe a few hints from others that have found a way forward from a similar situation.

I have been through a very bitter divorce that ended up in me taking on my ex's debts by order of the courts. Excuse me for not exactly being too chuffed about paying them off!

I have been paying the ex £600/month for the last 1 1/2 years, and should have paid for the next 3 1/2 years. Luckily (good move or not) she has settled in having the house and I no longer pay. (Although I would have been entitled to 50% of equity at the end of the 3 1/2 years). There was only £10k equity between us at the point of recent settlement, and I would have forked out another £24k over that period!

Thought it better to be financially separated and to move on. I understand from other posts that people have managed to acheive settlement figures considerably lower than the outstanding balance noted by the DCA.

GG

Xbigman

You can get a settlement figure and pay off debts in your circumstances, but it might not help. Some DCA's do not remove defaults after a settlement figure is paid, instead they just don't chase you anymore. You should ask about this when you offer the F&F.
Have you checked you credit records? If these defaults have been around for over 4 years then you are within two years of them coming off your record anyway. F&F's are still an excellent idea and worth doing, but might not be that nescesary purely in terms of getting a mortgage.
Lastly, how are you financing the F&F's? If you are using your newly freed up income then your creditors will expect increased payments anyway. If you borrow the money that may reduce the amount of money you can get for a mortgage.
Regards



X

Donedoingdebt

Correct me if I'm wrong, but I thought a default stayed on your credit file for 6 years, regardless of whether the debt is settled or not, unless it is there based on false or wrong information in which it could be challenged.

Xbigman

Yes a debt that is paid is marked as settled, which is what the OP's mortgage lender has asked for. My point is that some lenders will accept a full and final offer but NOT mark the account as settled because you did not pay it all.
Regards



X

EDIT. And just so its clear, a lot of mortgage lenders do not accept settled defaults at all. Having a big deposit helps get over this.