Car Repo'd in Texas & in collections. Want to buy home. What now?

We want to buy a home.. but banks won't let us till we take care of the collection company over this car. Orgionally we owed 2500, but intrest has it to about 5000$. I am scared to even call to try and settle this. What should I offer to settle? -or- how long will it take till they write it off & its not our problem anymore? Isn't it 7 years till its off your credit? Car was repo'd in 2003. Thanks to anybody w/ some info!

Answer:
It can be reported as a repo for 7 years. However, if the creditor obtains a judgment against you, it could possibly be there for 10-20 years if they continue to renew the judgment for nonpayment. In Georgia, where I am, I can "renew" a judgment every 7 years until it is paid. Also, if they get a judgment, they can garnish your wages and/or put a lien on other personal property or real estate you own.

It is best if you work out some kind of settlement with them. If you come up with a settlement be sure to get everything in writing because some more unscrupulous creditors will take your money and then still sue you for the rest.

As a collector, I go out of my way to help people work out of the debt up to and including reduction of interest and late fees as long as they are willing to work with me and keep the arrangements they've made to repay the debt.
I don't see how you expect to buy a home when you cannot even pay for a car. Perhaps you should consider delaying your plans to buy a home for another year or two - pay off the debt on the car and save up some more money for a down payment.
It will be on your credit report until Month?/day?/ year -2010
You need to clear up your credit history first. If that means renting, then bite the bullet and do it. If you can't take care of you past debts, how can you expect anyone to trust you to take care of future debts. Right now you're not a good credit risk. Take the next year and 1/2 and make arrangement to pay off those debts, then a lending institution may give you a chance. Do nothing and you'll be renting a long time. Setting the example.
From what I know.If you settle with the account you can in-return hurt your credit scores even more. If you looking at buying a home, you need to get your credit cleaned up. you can challenge the accounts yourself and hopefully get them removed, or have someone do it for ya.The company that i reached is Trinity credit services. talk to Leana, she great.

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