Settling down a debt

[andreea_plesoiu]

If the student defaults if the loan is private and defaulted, within the 6 years of the SOL, if he wants to settle down the debt, could he do so by buying pack the debt at a discount (and if so how many cents on the dollar) or he has to buy back it at face value.
And if he were to settle down the debt by buying it back, would it still appear on the credit score?

 

[Silverplum]

If the student defaults if the loan is private and defaulted, within the 6 years of the SOL, if he wants to settle down the debt, could he do so by buying pack the debt at a discount (and if so how many cents on the dollar) or he has to buy back it at face value.
And if he were to settle down the debt by buying it back, would it still appear on the credit score?

Your other thread: https://forum.freeadvice.com/debt-collections-84/federal-credit-union-loan-615744.html

You only need one thread.

 

[Just Blue]

If the student defaults if the loan is private and defaulted, within the 6 years of the SOL, if he wants to settle down the debt, could he do so by buying pack the debt at a discount (and if so how many cents on the dollar) or he has to buy back it at face value.
And if he were to settle down the debt by buying it back, would it still appear on the credit score?

What a vile person you are. Sad that you didn't take the Morals 101 Class.

 

[TigerD]

What a vile person you are. Sad that you didn't take the Morals 101 Class.

Nothing vile about that. Sound business question.

It is extremely unlikely that the poster has the financial wherewithal to purchase the debt portfolio from the person/company owning it. That would require purchasing the entire portfolio - not just one file.

Now, negotiating a discount for immediate payment is very doable. Read the sticky on negotiation.

TD

 

[Just Blue]

Nothing vile about that. Sound business question.

It is extremely unlikely that the poster has the financial wherewithal to purchase the debt portfolio from the person/company owning it. That would require purchasing the entire portfolio - not just one file.

Now, negotiating a discount for immediate payment is very doable. Read the sticky on negotiation.

TD

I'll agree to disagree.

 

[single317dad]

I agree that this scheme seems like a good idea from the consumer's standpoint. Big financial institutions expect a certain amount of failed loans, and plan for that. They sell off the failed loans for next to nothing, but as TD stated, you can't buy just one. It would cost the bank more to facilitate just that one small transaction than they would gain from selling it. Bad business.

The moral problem with this idea is that when the bank planned for this loan to fail, many other people who took out similar loans paid a little more for their money so that OP could default and the bank could absorb the loss. It's sort of like stealing from those other people, since we all know that it certainly wasn't some bank exec who took the hit!

Take the advice given and read the sticky on negotiation.

 

[andreea_plesoiu]

Hello!

Thank you for your answers! I found the sticky on negoation as a thread under Debt collections part of the forum.

Thank you again.