CW/BofA Settling HELOCs and 2nds????

[seijimo]

I read a thread on another blog that CW/BofA is settling 2nds and HELOCs....not modifying, but settling.

I just settled 10 credit cards with $140,000 in balances for $0.28 on the dollar. Got the credit card companies to settle for $39,000 saving me over $100,000.

Still have some money left over to potentially settle my CW HELOC that has a $98,000 balance.

Does anyone have any knowledge of CW/BofA actually settling 2nds or did I just catch a nasty rumor on the internet?

Thanks in advance for your feedback. Much appreciated!

[Evan Bedard]

Hi seijimo,


Thank you for joining and welcome to the forum.


That is not just a rumor BofA is indeed now offering settlements on 2nds as well as modifications. Have you already attempted a solution for your 2nd?

[NeedHelpwCW]

Did you dealt with the credit companies on your own? How long was this process?

[seijimo]

Evan....thanks so much for validating my question. Much appreciated.

Do you have a resource you recommend (contact number, etc.) for settling my BofA 2nd?

I have not started the process yet, so any tips are appreciated.

I do not plan on using an attorney or debt settlement company since I was able to settle my other accounts from $140,000 to $39,000 without legal support.

[Evan Bedard]

Hi seijimo,


Sorry I wish I had the email to give you. But there are several posts if you look around that have the email address for Barbara J. Desoer. She is the president at BofA and many people on the forum are getting excellent results reaching out to her..

[justus]

Does anyone have a mailing address for CW/BofA? I would like to submit a request for a loan modification, but I do not want to spend the next 6 months on the phone with India. I am hoping maybe if I send them enough correspondence I can get someone to look at my proposal to settle my second and modify my first. Anyone have any ideas as to what avenues I should pursue? Any names, mail stops, etc. that I might reference in order to get someone's attention? Those of you who have had success, can you post the addresses your correspondence came from? Additional email addresses (other than Barbara Desoer) would also be appreciated. I know in the past there was a sticky with Countrywide contacts. Are there not comparable Bank of America contacts to be posted? Or are there so many of us on the loansafe forum that we'd overwhelm any posted contacts?

[pdsfoley]

I think the settlement is for HELOC's only........but I could be wrong

[jhn_plsn]

I do hope you guys are correct as I have a heloc I have not made a payment on since December. They call twice a week but never have anything to offer me. Do I need to instigate by making an offer first. I tell them the house is only worth about 200,000 and my 1st is 316,000 but they have yet to come up with an offer. I suppose the collector that calls does not have the ability to make any offers.

So I was thinking of starting at 3% of the ballance paid over 2 years at 0% interest. If they agree to even a 10% offer over 3 years at 0% my payment would only be 258 instead of 600 and I would have a realistic outlook on my housing situation. To me anyway.

[seijimo]

Anyone with success stories or experience with settling (not modifying) a HELOC or 2nd mortgage with BofA/CW or any other lender.....please reply.

I will start working on getting in touch with BofA regarding a possible settlement of my HELOC and will update this post with any relevant news that can help others in the same position.

All the BEST!

[NeedHelpwCW]

I settled my HELOC with CitiMortgage. Still waiting for them to release the lien though. It's been two weeks now.

It was a long process to find the right people to start this process. I started in the beginning of March and was told many disappointing things. Most of the reps. did not know where to direct you to. But I persisted and ended up with the right person to assist me. I took days off from work to make calls after calls. And these calls consist of a long waittime. CitiMortgage has this thing where if your wait time is longer than 20 minutes, it automatically disconnect you. So, this was extremely frustrating. But it paid off. I proposed a lump sum payment of 10% of the balance for their forgiveness of the remaining balance.

Someone else was trying to settle their CitiMortgage 2nd as well. "Restless" never posted his update. S/he started the process before I did. Not sure if it was settled.

[seijimo]

NeedHelpwCW....thanks for your reply. Great story.

So can you share some numbers regarding:

1) Home Value
2) 1st mtg balance
3) HELOC balance
4) Final Settlement Price (did they agree to only $0.10 on the dollar)?

Any tips or mistakes or pitfalls you would recommend we follow, avoid, etc?

Hope you get your lien release shortly so you can stop waiting anxiously!!!

P.S. In case you can help further, my situation is:

Home Value $280,000 - $300,000

1st mtg (5/1 ARM with one year left before adjusting) is $200,000.

HELOC is $100,000.

So not sure if CW/BofA will want to settle for only $0.10 on the dollar, but I can try to use the same language I used in my credit card settlement and hope that it'll work here too.

[NeedHelpwCW]

My property dropped, but not that drastically. They sent a broker out to my house to take pictures and she had to provide them with a value of how much the house is worth. I provided her with recent sold homes and current sale listings as well. I told her what I think the house is worth, but not sure if she took that into consideration. She wasn't able to give me the value.

I owe $720K on my first and $110K on my HELOC. The last exact home sold at $700K. So, I am assuming that $700K was the value that the broker used.

I just got my 1st to modify to a fixed rate of 2%!!! Just sent in the loan mod documents!!! NACA asked for a principal reduction, but was not offered when the offer came back from CW. We are happy with the 2%!!!!!!!

[jhn_plsn]

Originally Posted by seijimo

P.S. In case you can help further, my situation is:

Home Value $280,000 - $300,000

1st mtg (5/1 ARM with one year left before adjusting) is $200,000.

HELOC is $100,000.

So not sure if CW/BofA will want to settle for only $0.10 on the dollar, but I can try to use the same language I used in my credit card settlement and hope that it'll work here too.

There is plenty of value to thier claim with your quoted ballances. They most likely will not deal rather foreclose instead, so don't go past due on your bill.

My sich,
Value+ 180,000-220,000
1st Ballance= 316,000
2nd Ballance= 93,000

I guess I will wait for the next phone call from thier collections and make them an offer. I would think they would me happy with mabe 5%.

2% on a home loan, WOW. I may just wait until its been a year and make another offer to my first. They gave me an interest only for 5 year deal and I went for it.

[CW California]

jhn plsn
What happens to the 2nd on your credit report when you negotiate it down. How does is show and how bad is that negative?? (If you know.)

[jhn_plsn]

Originally Posted by CW California

jhn plsn
What happens to the 2nd on your credit report when you negotiate it down. How does is show and how bad is that negative?? (If you know.)

Funny, we are conversing on two different threads.

I have not been successfully on my 2nd yet but they have called every weekend in the last four weeks so hopefully I get somewhere this week.

My credit is on fire its so low now so I have not looked in about 6 months. I am not to concerned with the credit as I know no matter what hits it takes it will take some time to overcome. We, traditional family of four, have been living cash only for about three years now and have been lucky. There have been bumps here and there but if I had the mortgages and CC debt settled we would be in great shape. Theres just to much hanging over my head right now. I have to get things settled and move on in life.

[restless]

Originally Posted by NeedHelpwCW

I settled my HELOC with CitiMortgage. Still waiting for them to release the lien though. It's been two weeks now.

It was a long process to find the right people to start this process. I started in the beginning of March and was told many disappointing things. Most of the reps. did not know where to direct you to. But I persisted and ended up with the right person to assist me. I took days off from work to make calls after calls. And these calls consist of a long waittime. CitiMortgage has this thing where if your wait time is longer than 20 minutes, it automatically disconnect you. So, this was extremely frustrating. But it paid off. I proposed a lump sum payment of 10% of the balance for their forgiveness of the remaining balance.

Someone else was trying to settle their CitiMortgage 2nd as well. "Restless" never posted his update. S/he started the process before I did. Not sure if it was settled.

I'm still working on mine. They keep telling me "couple more weeks".
Restless is a "she"....LOL
I call CitiMortgage every 2-3 days. I am NOT going to give up on settling! I promise to keep everyone updated.

[FedUp02]

Evan - Regarding Barbara Desoer, Prez of B of A. Will she work with you if you are already working with NACA? Or only if you haven't started working with another organization? Thanks.

[NeedHelpwCW]

Restless, I hope you will get an approval soon!

[mamona]

We are going to foreclose, there is not mod that can help us at this point. Our plan is to stop paying 1st and continue paying 2nd (it is only $150 a month), The question is, can I settle without being late in my 2nd??? As soon as we stop paying 1st will the 2nd be notify???

Thanks for your help and for this nice thread

[NeedHelpwCW]

I was not late on my 1st and 2nd. My 1st has been modified and 2nd has been settled.

[mamona]

Originally Posted by NeedHelpwCW

I was not late on my 1st and 2nd. My 1st has been modified and 2nd has been settled.

NeedhelpwCW, Fist able thanks for your prompt answer. Now let me ask you more question; do you mind telling me which tactic did you used with your 2nd mortgage. What did you tell them for them to settle with you?

Thanks

[NeedHelpwCW]

I told them that I forsee myself not being able to afford this and that foreclosure was the other solution if it was not settled. It took me a long time to find the right people to speak to... it was a lot of phone calls and endless waiting on the phones. Many of them don't know what they are doing. I just got lucky!

They sent a broker to my house to evaluate the property's value. Apparently, that satisfied their review for a settlement. Remember that they are in second position. So, if the house foreclosed, they do not get anything at all since I am upside down. My 1st is more than the value of the property.

[NeedHelpwCW]

seijimo,

When you settled your credit cards, was one of them Citi? I am having trouble getting in touch with someone over there to help me. Any contacts that you could share?

Thanks!

[bluemoon]

Hi,
I was offered a loan mod based on gross income, not necessary living expenses. Was told by bofa that expenses are not considered. Those of you who used Naca, what percent of income, either net or gross did they use to modify loan. Needless to say, we cannot take mod at the rate offered. We cannot use naca as own another home that we will be moving into after forclosure. If you get a credit card company to settle loan, doesn't it then require a 1099 C as taxable income? So then you owe the IRS tons of money and they can attach other income to collect.

[jhn_plsn]

If you file bk and prove insolvent then no tax as far as I know. The only way to avoid tax on mortgage forgiveness is also to prove insovency through bk. I believe also there is a 3 year '08-'10 where mortgage forgiveness is available but there are limits. Hopefully someone else can provide us with the proper info soon.