Green Tree Servicing litigation warning

[jauribe]

I live in California, and I have had the unfortunate experience of dealing with Green Tree. They own my 2nd with a balance of $68,000. I had an offer for a short sale with the 1st offering GT a $7,000 pay off. GT refused! The first foreclosed and GT got nothing. My problem is that in 2006, I refied the second and took equity out (approx. $10,000). I just got the same 15 day notice warning of pending litigation. My wife and I are torn on what to do. We were fortunate enough to purchase the current home we live in before everything happened. The home that GT is involved with was a rental we owned that went bad when the tenants stopped paying us their rent.

We are looking for any advice or past experiences anyone has to offer. I have a very hard time paying them any money especially after they refused the short sale offer which led to the foreclosure. If I'm not mistaken, since I refied, the GT second is a recourse loan?

Please, respond with any and all comments!

Jonathan

[TomEason]

jauribe

Thanks for your post and welcome to Loansafe.

I sympathize with your plight; it seems GT is one of the worst.

What is a 15 day warning of pending litigation? I've never hard of such a thing. But I guess it's nice to get a warning, so you can start to evade process service.

You might also check online with your county Superior Court to see if a complaint has been filed with the court clerk.

[jauribe]

I received a letter from GT stating that if I didn't settle with them within 15 days, they would consider legal action against us. Several other people on this forum have stated that they received a similar letter from GT. I was wondering if anyone that received that letter has had any further communication from GT? Is my assumption about the second being a recourse loan correct?

[jauribe]

Any update from GT? I just received a similar letter from GT and I'm trying to figure out my best option.

[TomEason]

jauribe

Thanks for your post. Your GT debt is recourse SOJL. Although not legally barred from suing you, lawsuits by recourse SOJLs have heretofore been rare in any state.

I'd never consider paying or settling with a SOJL. If it were me, I'd ignore GT completely.