TomEason - Chase HELOC Settlement Question needs Answer

[debtfreeme]

HELLO,

Faxed my Letter of Debt Settlement to Chase explaining my hardship and requesting to settle for 6% of my 60k HELOC balance. They informed me that in order to have documents considered I would need to fax them my financials as well as "proof of payment" (which funds will be borrowed from a relative). I have no cash reserves, however, she mentioned that I can forward a bank statement proof of the relative showing that amount. Yeah Right! 1.) I take it this too is not necessary? Having read the Strategic thread for Settlment, I sent NO financial information. I know now to keep my mouth closed as to my plans as well. Having read many of the threads I am preparing myself for the battle as I don't know what will happen. I know that I want to keep my home, yet can't afford further payments. This month is the first missed payment, though past several months they have been delinquent (several days after each grace period) even using my cc. It has been a struggle (medical issues).

Now within the late payment grace period (10days which normally 15 days considered delinquent), Chase has sent me a UPS letter telewire informing me that they have not recieved my payment. This lets me know that they did recieve the fax, yet no contact yet. I can wait.

My question is that I have another lien on my property for construction work done and expires next year. That lien states I cannot sell the property, etc. or I would have to pay them 30K back. 2.) Will this lien or the one with Chase affect one another? 3.) Am I wise with my timing to file settlment with Chase while this lien remains on, will it hinder foreclosure or any adverse action they may try if they decline my settlement and I continue making no payments? I am in Michigan and my house is truly underwater. It is now worth the amount I am offering.

Is there any other information that I need to be aware of?
Do I continue to wait till they contact me, I remember the "Settlement winner Cubanmale" mentioned that Chase settled with him by the next month, though I plan to await the % I can afford.


Please Advise,

[HopingtoFind]

I am guessing you're talking about a Mechanics lien that was most likely recorded when the 2nd was already there. Each state is different as far as SOL period for Mechanics liens and what these liens can or cannot do, I am assuming you're familiar with your state's SOL.

So if my assumptions are correct if you settle your 2nd before mechanic's lien expires then mechanic's lien becomes 2nd in line to be paid if there is foreclosure or sale. If there is Short Sale or Deed in lieu you would have to negotiate with it to go away. In other words they gain leverage by the fact that 2nd goes away... better to have it expire before settling your 2nd.

[debtfreeme]

HopingtoFind,
Thanks for the response. Actually, the lien is from a City repair grant. I would like to settle without foreclosure or walking. I also have several other cc with Chase and as I'm learning that if I'm to take a hit on my credit with the Heloc, I may as well try to settle with these as well. Would it matter that I recently used two, as the other I've closed and have been making payments. What's your advice?
New to the site, learning as I go and there is is wealth of knowledge in these forums.

[HopingtoFind]

Got it. If you know for a fact that the other lien expires, then my answer still applies.

As far as CCs, your thinking is the same as mine, might as well take a hit and get rid of all unsecured debt.

[debtfreeme]

Thanks HopingtoFind,

Though I've already faxed my letter this month.....I can wait. The other lien expires in 3/2012 and I am not really counting on an agreeable settlement at this moment as I've read.... I will need time for negotiating. At that time I will discharge the lien from the Mechanic/Cty Repair off my deed and focus on my settlement with Chase w/o additionals.

I don't know much about SOL, yet, I will search the web for information on Michigans laws.
As to the cc, I surely don't want Chase to view my CreditReport and judge, Hey, he's paying the cards, yet can't pay us. Actually, cant afford the cards any longer as my hardship situation applies to all my debt. Struggled so much that I was using their cc to pay the Heloc. It will truly be a blessing to be "debtfreeme"

I will keep you abreast as things start to happen,

[debtfreeme]

HopingtoFind,

I am back after a few months of waiting. First of all Chase never called me. Probably due to my hardship letters mentions for collection companies not to call, though I excluded the Settlement dept. Well I called them and the women in the office were not cruel at all. They all sounded Hispanic as were their names.

She stated 15K, I told her that I did not have it. OK, then she said 10K with proof of the funds. I said I will see what I can scrap up for the 3k initial offer that I sent to them in my hardship letter. I came up with 7.5 with proof and faxed it all. Minus their request for 2009-2011 tax forms, 2 paystubs and bank statments (all complete pages not just front cover consolidation). This was March 30 2012.

Now I called them this week. Another agent mentioned that I need to re-do my offer with 10k. I told her, "I didn't have it, giving you all that I can muster up. She said OK. (simple, wow scary). However, they mentioned for me to re-do my stipulation.
My concern is that I want to be covered. They said they will release the lien and not come after me for any deficiencies. Great! But i would have to redo my conditions. I have to put in words that I understand that they will 1. release the lien 2. not come after me for defiencies 2 send information to creditors concerning charge-off or settled for less than amount.

My letter conditions read:
1My account will show paid in full with no future monies owed associated with the acct nbr of xxxxx

2.any litigation filed against me is dropped and no future litigation in any State will be filed against me associated with the acct nbrxxx

3. Lien shall be released with no defiencies incurred

4. delete all negative listings pertaining with the account nbr xxxx

Please give me your input. This templated I retrieved online. They stated to redo the letter because she feels they will not comply (sounds like a person opinion or suggestion) I just want to be covered.

Is there any wordings for settlement that I MUST have in the letter so as to not get bite later on

I used a template. Is there anything

[debtfreeme]

Got it. If you know for a fact that the other lien expires, then my answer still applies.As far as CCs, your thinking is the same as mine, might as well take a hit and get rid of all unsecured debt.

HopingtoFind, I am back after a few months of waiting. First of all Chase never called me. Probably due to my hardship letters mentions for collection companies not to call, though I excluded the Settlement dept. Well I called them and the women in the office were not cruel at all. They all sounded Hispanic as were their names. She stated 15K, I told her that I did not have it. OK, then she said 10K with proof of the funds. I said I will see what I can scrap up for the 3k initial offer that I sent to them in my hardship letter.

I came up with 7.5 with proof and faxed it all. Minus their request for 2009-2011 tax forms, 2 paystubs and bank statments (all complete pages not just front cover consolidation). This was March 30 2012. Now I called them this week. Another agent mentioned that I need to re-do my offer with 10k. I told her, "I didn't have it, giving you all that I can muster up. She said OK. (simple, wow scary). However, they mentioned for me to re-do my stipulation. My concern is that I want to be covered.

They said they will release the lien and not come after me for any deficiencies. Great! But i would have to redo my conditions. I have to put in words that I understand that they will 1. release the lien 2. not come after me for defiencies 2 send information to creditors concerning charge-off or settled for less than amount. My letter conditions read: 1My account will show paid in full with no future monies owed associated with the acct nbr of xxxxx 2.any litigation filed against me is dropped and no future litigation in any State will be filed against me associated with the acct nbrxxx 3. Lien shall be released with no defiencies incurred 4. delete all negative listings pertaining with the account nbr xxxx Please give me your input. This templated I retrieved online. They stated to redo the letter because she feels they will not comply (sounds like a person opinion or suggestion) I just want to be covered. Is there any wordings for settlement that I MUST have in the letter so as to not get bite later on I used a template. Is there anything