BofA charge off versus settlement of HELOC

Submitted by Susan from CA - 06/08/2010 - 10:58pm

My property short saled last month and now BofA has reported the remainder of my second mortgage, my HELOC, as "charged off". My 1st mortgage was reported as "settled for a lesser amt.". My question is if I give B of A more $ ( I already had paid down my HELOC 50%+) will the "charge off" be taken off my credit report. I understand that a "charge off" is as bad a foreclosure and will remain on my report for 7.5 years.

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Comments

Submitted by Sean - 06/10/2010 - 7:04am

I'm not an expert on this, but it seems to me that you ought to be able to negotiate what you are looking for. Only concern I would have is that BofA has been so difficult by all accounts that they may want full payment, and knowing you have the funds and the desire to keep your credit clean they may aggressively pursue collection of the full amount even though you only had partial payment in mind. You might want to seek an experienced negotiator (read attorney) to try and negotiate it for you.

Submitted by Michelle - 06/10/2010 - 12:47pm

Hi Susan,
If you do decide to contact the bank to re-negotiate the settlement we hope that you will return to this post to tell us what happened. This could be really valuable information for others that find themselves in the same position.

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