Paid in full question

[bakersfieldcredit]

To start off, I screwed up big time in 2005... anyway everything is scheduled to fall off at the end of 2012 roughly... but the lender at the bank told me to pay off all charge offs now to get me into a home quicker... so my question is, rather than wait and do nothing or try to fight, I want to just pay all in full, my question is if i pay all accounts in full, will they have to be updated as "paid in full/ paid as agreed"? or can they still update as "settled" even though I am paying full balance? She told me to just pay them and keep my debt card statement to prove payments were made. I dont wanna pay in full and chance getting a "settled". If this makes sence to you guys....thanks p.s. she said "just to pay full balance and dont worry about getting anything in writing, if paid in full, must be reported this way." I dont know whats true and not... thanks in advance. We dont want to just wait it out because there are somethings on there that dont fall off till 2015

[bakersfieldcredit]

Also, I have already DV'd(5 months ago) and got responces saying they are investigating..., sent PFD letters, only one has agreed. At this point if paying will get me into a home, I will do it.

[Lian]

Bottom line is that most mortgage lenders don't want any unpaid debt when they approve a loan, so paying is not really a FICO issue.

If you pay the debt, in full or by way of settlement, the current status will read "paid." Make sure if you settle for less that your agreement uses such terms "legally paid in full," "Paid in satisfaction of all debt and other charges," or words to that effect.

The creditor will enter a special comment field that indicates the debt was settled for less than the full amount. So current status of paid wont, in and of itself, indicate the terms of the payment.

I suggest you talk to your mortgage lender and see if "paid" with a "settled for less" is ok for their concerns, or do they require "paid" in full.

[bakersfieldcredit]

If I pay in full without any agreement, is there any possibility of any status besides "paid in full"? I am just scared that if I pay in full they will update as "settled".

[Lian]

There are two items that can be considered to have been "paid."

One is the basic debt itself, and the other is any additional interest accrued, or any fees they are entitled to.

Make sure your payment embraces all items they may assert an entitlement to under the debt.
As an example, if you pay the basic debt in full, that does not remove any remaining obligations that a debt collector may still assert as unpaid. They could still continue to attempt collection of anything they feel is obligated, even though the debt shows as satisfied.

[bakersfieldcredit]

Another question... I am just going to pay it all... I had a credit repair guy cause me some trouble, long story...anyway he sent a cease and desist letter to LVNV funding(on my behalf), I called them and told them(LVNV) to send me a statement to pay from, they told me that they legally cannot contact me now. So now what? Is there a way to undo this? I just wanna make sure I pay the entire balance, and get out of this mess. They will not send me anything or contact me, I just asked for them to send me a statement and signed paper saying "pay us in full, we will then update paid in full" they said no and we cannot contact you goodbye.

[Lian]

This issue has come up before the FTC. Their ruling is that, provided the consumer consents, cease and desist letters under FDCPA 605(c) can include permissible clauses that specify certain communications with you will be entertained. You invoke the cease and desist requirement, and can revoke it, in full or in part. Just notify the debt collector that you revoke any absolute prohibition, and specify the terms upon which communiation can proceed.