Green Tree Settlement Offer

[EffedbyCW]

So I finally got these idiots to sit up and take notice after 12 attempts that I am no longer paying my loan. It is the secondary loan and since my credit is already shot from working on a loan mod for the first loan, I told them they cant threaten me with ruining my credit since it already is.

I made them an offer of $5000 on a $53,000 loan. They declined. I offered $6000. They declined saying they will settle for 10% of loan. Im inclined to wait. I frankly dont give a crap. Let them stew. I think they may eventually take the lousy $6000. Or will they do something more proactive if I just ignore them?

My questions:

1. Are there situations where the second loan is written off by the bank after failing at trying to collect from the homeowner and then they have stayed in their homes?


2. Will the loan go to a collection agency eventually if I do nothing and then I can negotiate for less with the agency?

What is the worst case scenario if I do nothing?

[Liza09]

You said you owe $53,000 and offered $6,000 to settle. Did you mean they said they would settle for 20%? I'm going to try to settle with Green Tree also and am trying to come up with a game plan. I was hoping they'd settle for 10%.

[Kimbly]

At $6,000, you've offered more than 10% so I'm a bit puzzled by that.

Yes, they could write it off and send it to outside collections. IF any collection company would be interested in buying it. They also could just leave the unsettled lien against your home which would prevent you from selling until you take care of it. Alternatively, they could file suit against you to try and obtain a judgement.

The last option they would have is to do nothing for a while and hope that you recover financially so that they can them come after you. Depending on your state, the statute of limitations for them to collect could be as high as 10 years. I believe a lot of this 2nds that have no collectable interest against the house may wait us out and see if we are in a different financial (and credit) position towards the end of the statute and THEN file suit against us to try and get a judgement and perhaps garnish wages.

I'd do my best to settle it now if you can. That's what I hope to do as well (although I'm also letting my first foreclose). I make too much to file BK so even though I'm trashing my credit to get out of the house, I don't want a judgement that could garnish my wages for the full amount of my 2nd mortgage. That would really suck - to keep paying them for another 10 years or something.

Good luck in your negotiations!!

[Housebroken13]

Originally Posted by EffedbyCW

So I finally got these idiots to sit up and take notice after 12 attempts that I am no longer paying my loan. It is the secondary loan and since my credit is already shot from working on a loan mod for the first loan, I told them they cant threaten me with ruining my credit since it already is.

I made them an offer of $5000 on a $53,000 loan. They declined. I offered $6000. They declined saying they will settle for 10% of loan. Im inclined to wait. I frankly dont give a crap. Let them stew. I think they may eventually take the lousy $6000. Or will they do something more proactive if I just ignore them?

My questions:

1. Are there situations where the second loan is written off by the bank after failing at trying to collect from the homeowner and then they have stayed in their homes?


2. Will the loan go to a collection agency eventually if I do nothing and then I can negotiate for less with the agency?

What is the worst case scenario if I do nothing?

I want to do the same, who did you notify at Green Tree? My loan balance is around 47,000 and I was hoping I could settle for 10% of that. Please let me know. Thanks very much! I'm upside down in my home by almost 100K.

[bloominga]

Hello Green Tree victims!! I am in GA. Would you consider telling me what state you are from? If you would rather not I understand. Thanks for posting what you are doing to negotiate with Green Tree. It helps other GT victims know what they might be able to do. I would love to get rid of them. Posting this lets others know who to stay away from.

[Housebroken13]

Hi,

I'm in Conn. I was offered and accepted a 1 year interest rate reduction modification with them. They lowered it form 13.75% to 2%. I would really like to settle this debt before this mod expires though.

It took a lot of emails and phone calls to get the mod done.

I'd be happy to send yo a copy of the agreement I got if you like.

[Housebroken13]

Some more food for thought, thinking i should simply stop paying Green Tree altogether.

I currently am in a HomeSaver Forbearance with Bank of America until 2/1/2010. I've been told My load would get modified at that point in time.

Per Fannie Mae's loan workout fact sheet:

To execute the modification:

Prepare the Loan Modification Agreement (Form 3179, 3161 or 3162, as applicable) and obtain the signature(s) of the borrower(s)

You may only sign the Loan Modification Agreement for an MBS loan after the loan has been reclassified

Obtain subordination agreements from junior lien holders and record the modification if required by Fannie Mae in its written approval of the modification - So I am assuming they will contact Green Tree at his point to subordinate my 2nd lien?

Submit original agreement to document custodian within 30 days

[bloominga]

Housebroken13, please send info that you offered to dmk1044@gmail.com

Thanks!!

[michelle.m]

If you don't mind me asking, how did you go about trying to settle with 2nd? Did you write a letter? What did it say? I'm also trying to settle my 2nd and have not a clue as to how to go about it.

[Housebroken13]

Originally Posted by bloominga

Housebroken13, please send info that you offered to dmk1044@gmail.com

Thanks!!

All set! Just sent it from my gmail email account. Attached as a pdf document.

[bloominga]

That is really a piece of work! Did you get a signed or notarized copy or anything that would be proof that it came from Green Tree? That looks like something anybody could reproduce with MS Word.

Are you going to sign it?

[Housebroken13]

Originally Posted by bloominga

That is really a piece of work! Did you get a signed or notarized copy or anything that would be proof that it came from Green Tree? That looks like something anybody could reproduce with MS Word.

Are you going to sign it?

I thought the same thing when I got it in the mail LOL! That is a copy of the original I got via a FedEx delivery. I've already signed and returned and have been int he program for 2 months now.

I can say that they show my account as current to the credit agencies and that I've been paying on time.

At this point though w/ a pending mod on my 1st Mortgage with Bank of America, I'm wondering if I should just stop paying them and save my money? If BOA moves forward with a mod under my investor Fannie Mae, they will force Green tree to subordinate.

[fairfieldwizard]

Dear Housebroken13, would you mind also sending me the letter that you got results with? I'm in a similar bind. You can send it to fairfieldwizard@hotmail.com. Thanks a lot.

[Housebroken13]

Originally Posted by fairfieldwizard

Dear Housebroken13, would you mind also sending me the letter that you got results with? I'm in a similar bind. You can send it to fairfieldwizard@hotmail.com. Thanks a lot.

Just emailed it to you

[Housebroken13]

Need some input, gambling with Greentree. I did not make my payment for October, and sent them a letter telling them I was in a forbearance program with my 1st with BOA. I requested we begin settlement talks immediately, and that they contact BOA to discuss subordinating ASAP as I have no intentions of continuing payments until I get a modification of my 1st.

I doubt they will try to foreclose at his point.

What do you think?

[pookey]

Are there any phone #'s or high-up people's e-mail addresses available for Greentree?

I keep getting the collections people and the same people use different names, say they haven't heard anything from my attorney when in fact he just talked to them 2 days ago, etc., etc.

And I also would love a copy of the letter of settlement...e-mail is sendmeithere@hotmail.com

Thanks!

[michelle.m]

Housebroken- Can you please send me a copy also? I'm having a hard time coming up with a letter. Need all the help I can get. Thanks mo.mussetter@gmail.com

[Housebroken13]

Sorry Michelle, but I think that this board may be being watched by folks.... These guys are simply EVIL...

If I were you I would file complaints with govt. agencies ASAP about this companies questionable, aggressive, and unethical business/collections practices.

[Liza09]

We just received our Charpter 7 BK discharge and submitted a settlement offer to Green Tree on the second mortgage. They said they won't settle for less than 50%. What are they thinking? We are no longer obligated for the debt, we are 4 months behind with them and 7 months behind with the first. Oh, and did I mention they are completely unsecured? The value of the property doesn't even cover the first! We are trying to modify the first but nothing has been finalized yet. If the first forecloses, Green Tree gets nothing. I was told if we don't settle, they will charge off the debt.

I emailed the settlement offer to additional Green Tree contacts I found on this forum. We'll see if I get any responses.

[Housebroken13]

I don't know what planet these Green Tree folks are living on, definitely not Earth.... I'm in the same situation as you Liza, I've got hundreds of complaints I found online from Green Tree "customers" victims, and plan on filing a massive complaint with the FCC.

4 months behind, have they taken any action to foreclose?

We also filed a Chapter 7 ans were discharged in June, while in BK our 2nd Mortgage was sold from IHE to Green tree. Why the heck would they purchase a loan while it was in BK, because they like to prey on folks like us?

Did you reaffirm your Green Tree loan?

[pookey]

Originally Posted by Liza09

We just received our Charpter 7 BK discharge and submitted a settlement offer to Green Tree on the second mortgage. They said they won't settle for less than 50%. What are they thinking? We are no longer obligated for the debt, we are 4 months behind with them and 7 months behind with the first. Oh, and did I mention they are completely unsecured? The value of the property doesn't even cover the first! We are trying to modify the first but nothing has been finalized yet. If the first forecloses, Green Tree gets nothing. I was told if we don't settle, they will charge off the debt.

I emailed the settlement offer to additional Green Tree contacts I found on this forum. We'll see if I get any responses.

I thought filing Chapter 7 discharged all debt - isn't it Chapter 13 that allows you to work out a payment plan?

So if all of your debts have been discharged with a Chapter 7 BK they're out of luck, aren't they????

[brokemama]

I called BofA to settle my 2nd (1st was modified with Aurora months ago) and they told me they only do 85% settlements. The house is only worth the 1st and I am interested in either settling or having it extinguished. I think I need a lawyer's assistance; does anyone know of a good one preferably on the east coast?

[Liza09]

Housebroken13 - Green Tree has not taken any action to foreclose and they acknowledge they won't/can't. The value of the property doesn't even cover the 1st. Green Tree is completly unsecured. We did not reaffirm the loan although they sent the paperwork to our attorney requesting us to do so. That's crazy about Green Tree buying the loan while you're in BK. Green Tree bought our loan the same month we filed. Sadly for them, they never did get a payment from us.

Pookey - You're exactly right...they are not in a very good position. That's why it doesn't make much sense not to work with me on a settlement.

In response to the emails I sent to the company yesterday, I received a call from an Exectutive VP. He said Green Tree would not accept my offer. I asked him if the investor prefers getting nothing in foreclosue than a small settlement. He said "pretty much". I asked him if they would be charging off the debt now and he said "at some point in time". I was told by a different rep, Green Tree won't sell my debt. If that is correct, it seems the only thing they can do is wait for values to go up enough to cover their loan PLUS foreclosure costs (upwards to $40K) or wait until I die and my kids sell the house. So, I guess we wait...