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    nishi4's Avatar
    nishi4 Posts: 1, Reputation: 1
    New Member

    May 5, 2008, 01:57 PM
    Effects on Credit with Debt Not Paid at all VS Debt pain in Settlement
    I lost like 140k in a home foreclosure. The first mortgage bank cancelled my debt and sent me 1099c. The second mortgage bank sold the my loan for $102,500.00 to debt collector. Now Saxon mortgage who currently owns my loan, is giving me an offer to settle with $5000. I can't come up with that money. I have question though. I was told that any derogatory info on an account remains on the history for 7 years. Now its been 2 years already. I did not pay a single penny and have no intentions to pay in future too. Now, is it worth to pay $5000 and settle down or just forget that I even have this loan for another 5 years and wiat it to be removed from my Credit report. Or am I informed wrongly? Do unpaid loans remain on credit report forever? Any help will be greatly appreciated.
    progunr's Avatar
    progunr Posts: 1,971, Reputation: 288
    Ultra Member

    May 5, 2008, 02:12 PM
    Most folks believe that 7 year rule, and, it is accurate.

    However, it is 7 years from the last date that the account was reported.

    As long as the company is willing to keep sending the report to the credit bureau every month, it could stay on it virtually forever.

    I think I would try my best to find a way to get that $5,000, that is a very good offer given the amount of the actual debt. Be sure to get everything in writing before you send any money.

    Good Luck.
    Loan_Guy's Avatar
    Loan_Guy Posts: 83, Reputation: 6
    Junior Member

    May 10, 2008, 08:53 PM

    A quick question... You said that a junk collector bought he debt and now Saxon Mortgage owns it? How did Saxon get it and when?

    As far as the seven year rule, it is seven years from the date of last activity. Therefore if you have not done anything since you made the last payment, it could be longer than the two years as you say.

    Regarding the reporting; while lots of collection agencies will buy and sell your debt over and over, it cannot stay on your report forever. It is seven years from the date of your last activity. If they are re-aging the debt to reflect a different date to make it stay on longer, dispute it with the credit reporting agencies, as that is inappropriate.


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