[sylvia39]

I'm going through a divorce and before that we filed bankruptcy. We included our home and two cars. Then we had to hurry and move out of the house before our credit went to trash and got into a 12-month lease in Feb. 07. Two months later I found out husband was cheating on me and I kicked him out. I could not pay the lease on my own so I moved out and broke the lease. We owed $2500 but when I got my three credit reports last week it states I owe $2800. I have not heard from the property management in over 4 months. I'm stuck in another 12-month lease which will be up in August 08 and I want to move to a safer neighborhood for my 8-yr old daughter but fear no one will rent to me. I'm also in the process of cleaning up my credit and writing letters (bought an ebook with wonderful tips and letters how how to remove negative items) to the credit bureaus so that I either buy or rent again. Does anyone have any proven strategies/sample letters on how to negotiate with property management to get this reduced? Please help and any suggestions are appreciated. Thanks.

[progunr]

Is this showing up as a collection item, or as a judgment?

[sylvia39]

I don't have my credit reports in front of because I'm at work darn! I'll check when I get home. I do know it's not a judgement but not sure if it says "collection" on my report. I'll let you know when I get home tonight. Thanks.

[Fr_Chuck]

Oh, I see you are listening to some of the cheats on the system?
Can I assume they are having you challenge valid debts, saying they are not valid and hopeing that the place that reported it, will not respond, so it will clear??

Since valid and actual bad debts are to be listed, you are suppose to actually only challenge those debts that are really wrong.

So to settle, you pay them what they ask, you offer them a percentage of the money owed, they may settle for 1/2, or they may not, you may try and ask.

As for your current landlord, what will they say when he new landlord calls for a reference, And not to lecture, I know that is not what you are asking, you should not have rented there if it was in a bad part of town, and you do have a legal obligation, and remember they can sue you, get a judgement and if your state allows, even garnish you paychecks,
Think it is hard to pay bills now, let 1/4 of your pay go to debts and see what happens.

So what you need to do is set up payment plans with them to pay your debts, stay in your current location till you are legally clear to move, ( or work out deal with landlord to allow you to move)

[sylvia39]

FR_Chuck, the broken lease is listed as CTL Collection on one of my reports and the actual name of property management on another. I do plan on staying where I am until the lease is up no matter what. While I'm cleaning up my credit report, I don't have any debt except for this broken lease. Everything else was included in the bankruptcy. But for my daughter's safety and my own, we WILL be moving out of here when our lease is up but I'm just afraid that I will not be able to rent again due the collection. I know my current landlord will give me a good reference because we are the best tenants they have. Out of desperateness I moved here without checking everything out and yes I have to eat humble pie and bear it. I'm just not sure how to word a good negotiation to pay off the broken lease. I don't care what it takes to remove other negative "valid" remarks not debt because I have none except the broken lease. It worked in the past so I know if I'm consistent, it may even take 5 or 6 certified letters, but I'm doing it anyway and I know it works. I've seen it done. For my daughter to have a better place to live, yep you bet. But renting again is my second choice, I'm buying a condo first and if that don't work out which I know by the end of the year it WILL happen no matter what negative comments or remarks people say, it WILL happen. So many people let themselves be intimidated by these Credit bureaus and 6 out of 8 times their info is incorrect and that's how they make their money, off YOUR BAD credit. Time to switch the tables cause I'm fighting dirty too! Let NO ONE tell you different people. IT CAN BE DONE.

[sylvia39]

Is this showing up as a collection item, or as a judgment?

PROGNR see what I answered to FRChuck. Thanks.

[progunr]

Since they are collections and not judgments, you may still have some room to negotiate a lower settlement.
Especially the one that is already assigned. When companies buy bad debt, they generally pay only a fraction, 50% or less, that the actual amount due.
So, with a $2800 debt, the most they have agreed to pay the company they purchased it from would be about $1400.
Keeping that in mind, and being aware that they too need to profit in some way in this transaction, use that as a general guideline when you offer a settlement amount.
The account still listed by the property management company will be a little more difficult since they have not assigned it to a collection agency yet.

Good Luck to you!

[sylvia39]

Thank you Prognr that helps. I will keep in mind what you said and wait until I save some more money to negotiate which will be soon. I rather have the cash on hand to pay the least they will take instead of making payment arrangements. Money talks. Thanks again.