Finally got an offer letter to settle my second!

[BONYM_Victim_in_AZ]

All, I received a faxed letter today from Green Tree. My original loan servicer was Bank of America. I believe they either transferred or sold my second loan to Green Tree about 5 months ago. I have not paid on this second in almost two years but I have continued to pay my first on time. Therefore there has been no foreclosure.

Today I received a fax letter from them (attached). I spoke with them on the phone today and they stated they would settle my $56k second for $13k. The questions I have are as follows.

1. Is this faxed letter adequate? Can I simply just send them the money? Is this legally binding?
2. Is there anything else I should negotiate on the letter in regards to how they report to the credit bureau?
3. Anything else I should be aware of?

Thanks in advance for any feedback!

[Evan Bedard]

1. Is this faxed letter adequate? Can I simply just send them the money? Is this legally binding?
2. Is there anything else I should negotiate on the letter in regards to how they report to the credit bureau?
3. Anything else I should be aware of?

Personally I would not accept there 1st offer and try to negotiate a lower amount as they are in no position to try and collect on the account. We have many members here who successfully settled their underwater 2nd for as little as 5-10 percent of the balance..

[BONYM_Victim_in_AZ]

Were they able to settle the debt at 5-10% and retain the property? Or are you referring to a short sale or already foreclosed property?

[BONYM_Victim_in_AZ]

Also, is this document legally binding? What if I send them the money and they say thanks for the payment you still owe us $45k?

[Evan Bedard]

Were they able to settle the debt at 5-10% and retain the property? Or are you referring to a short sale or already foreclosed property?

What is the status of your 1st mortgage? Only if you have found a solution on your 1st mortgage and are looking to keep the property should you consider trying to settle your 2nd.

[BONYM_Victim_in_AZ]

What is the status of your 1st mortgage? Only if you have found a solution on your 1st mortgage and are looking to keep the property should you consider trying to settle your 2nd.

My first mortgage is not upside down and I have been paying it on time. Therefore, there is really no reason for me to do anything with my first.

[BONYM_Victim_in_AZ]

Wondering if anyone can comment on the legality of this document? Any way I can ensure that they will actually release the deed once I pay?

[OverandDone]

I would take it to a lawyer if I was going to accept the offer and not go off the advice here. We all want to help but we are not lawyers.

[Evan Bedard]

The settlement letter definitely seems legitimate and if you agree to the terms and pay the amount they are offering the lien should be released and your account will be settled. Just keep in mind that you do not have to accept their initial offer and you may be able to negotiate a much lower payoff amount..

National Mortgage Settlement Information and FAQs

[HomeinAZ]

We settled our 2nd for 10 percent through SLS. We are upside down and didn't pay our 2nd for 10 months. The balance was $51,000 and their first offer was $25,000. I tried to low ball them for $3100 but we settled on $5,100. Their agreement stated SLS will release the lien secured by the deed of trust and also release me from any liability. About 2 months later I checked with my county recorder's website and found the lien was released as they promised.

[Evan Bedard]

That is awesome news HomeinAz you were successfully able to settle your 2nd for only 10%!!

[BONYM_Victim_in_AZ]

We settled our 2nd for 10 percent through SLS. We are upside down and didn't pay our 2nd for 10 months. The balance was $51,000 and their first offer was $25,000. I tried to low ball them for $3100 but we settled on $5,100. Their agreement stated SLS will release the lien secured by the deed of trust and also release me from any liability. About 2 months later I checked with my county recorder's website and found the lien was released as they promised.

That's awesome you stayed in your house and settled the second for only 10%. I spoke with an attorney and he informed me that I basically cashed out when I obtained my 80/20 loan. Therefore, I was exposed in the sense that on legal ground they could actually file a suit against me. I guess the non-recourse only applies when all the money on your loan is used to purchase the house. I wired the money Friday. I'm hoping the deed will be released by the end of this month. Ended up setting at 25%