We recently started following the process to settle our 2nd mortgage with green tree servicing who services our 2nd mortgage for bofa. We live in CA. Our loan amount is $140,000. They contacted us with an offer to settle for $104,000. We countered their offer at a figure much closer to what they might actually get in a short sale - after all other debts and fees are paid - about 3 percent of the loan balance.
Instead of sending us a new offer, they sent us a letter saying they have referred us to their short sale unit. We did not even mention short sale in our counter. I haven't seen this anywhere else in the threads, what should be our strategy at this point?