My question involves a mortgage in the state of: CA. I had a home foreclose on back in Aug 2011 which had a 2nd on it for $40000. I am in talks to settle on the 2nd for 10% and have received a letter from the collections agency stating that once the payment has cleared, my account will be considered settled and their client (Wells Fargo) will amend my credit report to reflect resolution of this matter. I also received a 2nd letter from Wells Fargo stating that once paid the remaining balance of the obligation will be forgiven and they will report the status of paid in full for less than full balance to the credit agencies. My questions are:
1. Can the balance be unpaid balance be sold to another agency which will try to have me pay it off?
2. Does the status of paid in full for less than full balance help begin to repair my credit?