It seems I just can't win...Help?

Question

O.K. been trying to get a mortgage since February been, payingdown bills, etc. Mortagage broker said, you have one more debt to pay, it about $1800.00 I said fine. I call the finance company and said I want to pay off this debt. she said fine let me get back too you. Then she leaves a message and says, your loan was turned over to a 3rd party that 1800 was our payment for taking over the account. they say I owe like 9K. what??? this was a debt for a vehicle that was repossessed. The original finance company went belly up. original company could not produce any proof of any of my payments even though I had proof. i told them come and get this vehicle and they did. I since then have another vehicle. Please, i don't need any soapbox comments, I feel terrible enough. this 3rd party is not om my credit report but the 1800 is. Any advice?

I like the dispute thing. One person said, they need proof that i owe this debt. What kind of proof would they have?

John, My Mortgage person said this has to be paid off even for FHA is this true?

Answer 1

Do not call to work out a settlement. They can use statements you make on the phone to make you liable for the bill. When they passed the new bankruptcy laws they slipped in this bit about selling debts. Every debtor who'd ever written a letter "Did you know you're late?" sold even paid in full debts to companies for pennies on the dollar, and those companies are busy breaking laws if necessary trying to make people pay what they've already paid, or what has passed the statute of limitations, etc. They can use phone statements, or lie to try to make you liable to pay again. And then, when you pay them, they sell it again. It's mad.

Answer 2

On your credit report you will have a "high limit" loan amount at the beginning, a "current owed" total owed, "payment amount" and a "delinquent amount". What is listed under each of these?

Here is something you may want to try ... have your mortgage guy, restructure the loan as an FHA. FHA does not "necessarily" require debts such as this one to be paid off.

Here is how it works. Have him run you through his underwriting system for FHA. What they need to do is leave this debt in as if you are still paying on it. If the monthly payment is on your credit, this will be used. If the payment amount is zero, they will take the balance and multiply it by 5% to come up with a payment. If the underwriting system approves the loan using this payment, then this debt "does not" need to be paid off at closing.

You just saved yourself a headache. Now you will want to clean this up eventually, but it won't keep you from buying a home. FHA rates are equal to or less than regular conventional rates.

Good luck ... visit my blog http://mortgagecounselor.blogspot.com or my website http://www.johnleblanconline.com for more information on this topic.

The more you know, the better off you are!

Answer 3

Dispute the claim with the credit agencys. If they cannot provide proof of the debt they are required by law to remove it. If they still give you trouble talk to a lawyer and consider sending a letter threatining legal action. Most of these places will just write off the debt at this point because it is no longer worth it and they are ussually on shaky legal ground anyway

Answer 4

Call them and try to work out some sort of settlement. Tell them you have proof of payments, ask what they sold the vehicle for (this amount has to come off your balance). Don't get emotional or be rude, stay all business and maintain that the goal is to clear this up ASAP.

Answer 5

Pay them a visit and sort out all the documents and payment.