Franklin Credit Mgmt 2nd loan mod

[ltravel]

I've posted before about my ASC/Wells Fargo loan mod which is now in forbearance, but have also been working with our 2nd loan holder, Franklin Credit Management.

I started back in April and have been back and forth since then. I have been able to pretty much speak to the same person each time, but so funny how their policies change constantly. Our payment is $972 (13.75%
int rate). We are still current but paying at the end of the month. We rcvd
a letter of denial today so I called to see why. Long story short, loan is in his name, they don't count total household income, the hardship comes from my loss of income not his, so bottomline, they don't care. Back and
forth for an hour and was able to negotiate for a 12 month rate reduction
bringing pymt to $694 monthly. Won't believe it until paperwork comes, but keeping fingers crossed, it's not the biggest difference but it's something in the mean time. Hopefully 1st mod will go thru after forbearance and business will pickup in 2010.

Has anyone had any luck with Franklin Credit Mgmt, or stories to share?

[Evan Bedard]

Hi Itravel,

I would continue to follow up with them everyday until you can confirm that the papers have been sent and that you have recieved them. Sounds like it will save you a significant amount of cash over the next 12 months! Keep us posted on your outcome.

[Vick2009]

I have my second loan with Franklin Credit and they are only offering 6 month sinterest rate freeze. I am unable to pay them going forward since my first payment is very high. My salary had been reduced and that is why I am unable to pay my second.
I always insist when they call me every 2 days for a settlement of the account and they told me to fax over my hardship letter and an amount to settle. I did that last week and now awaits an answer.

I hope all goes well and my account with them can be settled for the offer I made.

[ltravel]

Vick2009

I am still waiting for my paperwork from them on the 12 month int rate reduction. I need to get on the phone and check on it but I don't always have the time for the endless wait time with them.

You mentioned offering to settle the account. Are you referring to a settlement with them for the total amount due. They did tell me I could offer to settle the account for less than the 81K due, she threw a figure at me of 50K and said maybe they would accept that and still report the account as paid in full as opposed to settled. She couldn't understand why I didn't want to try this. Basically, if I had 50K lying around right now I wouldn't be worrying about lowering my payment each month. But, it sounds like a great thing they are offering to do if you have the money.

I will update as soon as they confirm my temp mod.

[ltravel]

Just got the letter from Franklin Credit confirming our 12 month interest rate
reduction effective 8/01/09. Payment went from $972.87 to $694.80 thru
7/01/10. Should save us $3336.84 over the 12 month's. Wish it was for the
life of the loan but this was the best they could offer. Won't know about our
1st loan with ASC until we finish the forebearance payments in November.

1 Down 1 To Go!!

[Vick2009]

Itravel,

I don't think that is a good offer at all... You should ask them to settle the account in full for the 81k that is owed.
They either take it or foreclose on the property. If you are on a forebarance agreement with your first then they put the foreclosure proceeding on hold until a modification is done for you. If the second wants to foreclose, the first lien holder would have to be paid in FULL before Franklin Credit get any dime. They would not want to foreclose and incur costs and then get nothing in the end.
I owe 110k to them and offer to settle for 3.5k. They either take it or commence foreclosure.
I owe 575k and my house is worth app. 379k
I am almost 200k underwater and that is why I need to settle the second lien. I wrote that in my hardship letter and I do hope they take that into consideration and approve my offer.

Will keep you posted.

Good Luck to you.

[ltravel]

I think maybe our situations are very different. We are slightly underwater but
live in an area that will come up quickly when the values start to rise again. My husband and I are still both employed, although I am self employed and my current hardship is a decrease in my commissions due to the economy, I have a travel business. We are current on our 1st and 2nd mortgages but running close each month. We are not in a foreclosure situation or even close to it. Franklin Credit did mention that I could offer to settle the mortgage but if we had the money to do that I wouldn't be on this forum in the first place. For us, this reduction in payment is just one helpful step in getting thru the next 12 months until my business picks up. The last thing we need right now is to trash our credit with one in college, one going in a year, and two more down the pike. Even Parent Plus loans take your credit into consideration. For now I'll be happy with this and hopefully the mod on the first
will come thru down the road. So as attractive as getting rid of this loan for peanuts
sounds, it is not our intent at this time.