Quote:
Originally Posted by rozuki  Thanks, Flgata! 
Question for you: did you say somewhere on here that you demanded that the bank remove the negative credit reporting once you got your loan mod? I know I saw somebody post something about that here....and I thought it might have been you? If so, whatever happened? |
rozuki,
I save this info for the last 2 years and it really helped me , I hope it will help you too.
You Can Negotiate With Creditors
Negative information on your credit report often is accurate. But even if a credit bureau has verified negative information on your credit report, don't give up. You can negotiate directly with your creditors.
Under the Fair Credit Reporting Act (FCRA), creditors are allowed - not required - to report your credit history. Creditors can add information to your credit report, and they can remove it. But how can you make that happen?
Start by asking for what you want. Tell the creditor that you want to clean up your credit report, and ask for help. Typically, the longer an account has been paid on time, the better your chances of getting negative information removed.
Remind the creditor that you are its customer and that you value doing business with it. Say that although you had trouble making payments in the past, you have paid on time for "x" number of months. Ask the creditor to delete the negative information to better reflect your current ability to pay.
If a creditor says nothing can be done, don't argue. Some customer service reps don't know how or are not authorized to remove the information. Ask to speak to a supervisor or another person in charge of credit reporting.
If you have an account that is delinquent, charged off or in collection, you must take a different approach. Contact the creditor to find out where the account is located. The creditor may transfer you to an in-house collection department or refer you to an outside collection agency.
Once you have determined the location of the account, try to negotiate a settlement. There are two ways to settle an account:
1. Offer a lump sum payment in exchange for the creditor removing any negative statements from your credit report.
2. Offer a payment plan where you agree to make monthly payments until the account is paid and the creditor agrees to remove any negative statements from your credit report upon completion of the payments.
Tips when to negotiate a settlement:
• Let the creditor know you are trying to take responsibility for your past credit history and regain control of your financial situation.
• Explain your situation, but don't over-explain. Tell the creditor what you can do, rather than what you can't do.
• Start negotiating as soon as possible. Negotiating with the original creditor is much easier than dealing with a collection agency later.
• Most creditors are willing to negotiate a settlement for less than the full amount of the debt. Some creditors will accept as little as 70 percent of the debt.
• Don't ask the creditor how much it will accept. Tell the creditor how much you can pay. Never offer to pay more than you can.
• Create a budget before negotiating a settlement. Creditors may want to know your complete financial situation before agreeing to a settlement.
• If you can't afford to pay all creditors at once, negotiate a settlement with the creditor with the smallest balance. Once that debt is paid in full, negotiate with the creditor with the next highest balance.
• Get all settlement agreements in writing. Keep copies of letters, statements, phone call notes and other papers for your files.
And here are some additional helpful hints:
Be polite. This will get you further than anything else when negotiating with a creditor. Creditors spend most of their time dealing with angry and difficult customers. Be courteous, and the creditor will be more likely to give you what you want.
Be specific. Always let the creditor know that your goal is to clean up your credit.
Creditors cannot help you if they don't know what you want.
Be flexible. Let the creditor know that you are willing to compromise. Creditors need to meet their objectives, too. If you present a win-win situation, then the creditor can feel good about the negotiation.
Be realistic. Some creditors will refuse to negotiate. Don't take it personally. Wait a few months, then try again.
Above all else, don't give up. The credit repair process takes time. Remember that thousands of people resolve their credit problems every year. By being persistent, you can, too.
Negotiate Negative Statements on Your Credit Report
Your next area of negotiation should be your credit rating. Depending on how anxious the lender or collection agency is to collect on their debt, it may be possible to erase the negative statements on your credit report, and instead have a comment such as “paid,” or “paid as agreed” on it. Again, remind the creditor that the statute of limitations is approaching, and insist that this be part of the settlement. You might also tell them that if they won't negotiate with you on this part of the settlement, that you will use the money you have to negotiate with another creditor that will place a good mark on your credit report. Occasionally, there will be a lender who simply refuses to budge, but most times they will be open to doing whatever it takes to reach an agreement.
It is better to negotiate with the original lender for a good credit report rating, and here's why: On your credit report, there can only be one mark for any debt. In other words, if the loan has gone to a collection agency, you can only have one bad mark for both the original lender and the collection agency. Since the original lender has the control over what this mark says, you should strive to negotiate a good credit rating mark with them.
Above all, don't pay the lender or collection agency anything until you have everything that you have agreed upon in writing. Insist that they send you a letter outlining the exact amount that will be paid, and exactly what comment they will put on your credit report. Don't be fooled into doing anything before you have in on paper.
Your final step should be to insure that all three credit reporting agencies have updated your credit report. You should get a copy of the receipt after you have paid your settlement balance, and then mail it to all three of the agencies and ask them to mark the item as paid.
Summary
1. Find out if the statute of limitations has passed on your debt
2. When negotiating, be cool, as your creditors can sense urgency
3. First, try to get "extras" like fees and late charges removed
4. Next, try to talk the balance down. Getting in down to 50% of the original
balance is typical, but it could go as low as 35%
5. Try to get the lender to change your negative credit mark to a positive on
on your report
6. Finally, report the settlement to all three credit reporting agencies
Thanks,
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