I am just beginning the process of settlement with PNC Mortgage. In 2008 we filed Chapter 7 and did not reaffirm either of our mortgages. We have never had a late payment on either of them but are now completely upside down due to the economy and will need to sell next summer for a variety of reasons. Our breakdown on our mortgages are as follows:
Our realtor just valued our home at $98,000 and that is possibly being a little on the high end. So, with that in mind, we have been planning on a strategic default knowing that there is no equity in our house. We are still current on the 1st and plan to remain so and the last payment on the 2nd was for May 2011. We received a letter on Monday stating that we are late and it could go to collections and so forth. I sent them a settlement letter in the mail offering $3,200 to settle the account and release the lien and have not heard anything back from that. However, I did submit a secure message on their website just to see what their response was and they responded saying they do not settle. So, I will just continue to wait this out and give it a little more time. If they want the house, they can have it, but they won't get any money anyway, so it seems that a settlement of some sort is their best option. Let me know if you guys have any ideas for working with these horrible people. I will keep everyone updated on any changes.