Home Loans and Support

2nd mortgage settlement SUCCESS STORY

Discussion in 'Success Stories - Homeowners Who Fought Back & Won' started by imasuccessstory, Mar 23, 2010.

  1. imasuccessstory

    imasuccessstory LoanSafe Member

    Hi everyone,

    I've been on this site for about 6 weeks or so. As many have already attested to, this site has been wonderful in providing a wealth of knowledge and information. I just wanted to post my success story for encouragement to those still in the process.

    I purchased my home in January 2006 with an 80/20 loan to avoid PMI. The first mortgage is with BoA in the amount of $208,500. It's a 10-year interest only loan, and 30 years with a fixed rate of 6.75%. The second was in the amount of $52,000 with a fixed rate of 7.87% with citi. On february 23rd, I sent in my packet to BoA for a modification, and I sent in my packet to citi with a settlement offer on the second for 5% of the balance....$2,500. Well, they sent an appraiser out to do the BPO. I gave her some comps for my area which showed sales in the neigborhood at around $199,000. The appraiser would not tell me exactly how much she appraised the house for, but stated it was somewhere between $215,000 and $225,000.

    I called citi several times/week to check on the status...no significant updates except that my file had been completed and sent to a negotiator. After a week of not hearing from the negotiator, I called the 800# again (866-520-5499), and my file was escalated by that department...meaning that the lady I was talking to said that she would email my negotiator and ask her to contact me, and that the negotiator had only 24-hours from that point to contact me. Well, she did, and she told me that my offer was too low. She told me to submit my BEST offer for consideration, and that she could not tell me a percentage because only I know my finances. Well, yesterday, I emailed her my best offer of $6,000...within minutes she emailed me and asked me for the best number to reach me with an approval. She called me, and then faxed me the approval letter. I'm wiring the funds TODAY for the full release of the lien from citi, and my account will be reported to the credit bureaus as "paid in full for less than full balance". YAY!!!!!!!!!!! God is sooooo GOOD!!! Talk about supernatural debt cancellation!!!

    A few more details to note are: My credit score is currently around 780, and I have NEVER been late on my payments; I have not even received a TRIAL modification for my 1st mortgage, therefore, it IS possible to have your second settled prior to doing a modification with your first. My mortgage is now going from $1,800/month to $1,400/month without the first loan being TOUCHED!!! This is truly amazing! I never would have even thought that you could settle a mortgage until I came to this site.

    Thank you loansafe, and thank you everyone for your contributions to this community.<!-- google_ad_section_end -->
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Perfect thanks so much!! Many people come to this section just to get an idea of what lenders are offering and also may have some questions for you.

    Thanks again!
  3. wizzy26

    wizzy26 LoanSafe Member

    Is that $1400 including tax and insurance
  4. imasuccessstory

    imasuccessstory LoanSafe Member

    YEP!! $1400 INCLUDING Taxes and Insurance! AWESOME, huh?? :)
  5. wonderxtreme

    wonderxtreme LoanSafe Member

    I have the same 80/20 but both loans with PNC. My main mortgage was sent to loss and litigation after 5 months in HAMP trial plan and than denied. I'm wondering how to get them to include 2nd mortgage in work out plan options. Any advice on how to approach? What did you include in letter?

    Thanks I really am thankful for all help
  6. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Are you going for a settlement on your second as well?
  7. sdorn

    sdorn LoanSafe Member

    Thank you for sharing your experience. I need to settle my second with Citibank in order to get a short refi on my first with GMAC. I have also not missed a payment. What kind of packet do I need to send citi that will have a settlement offer on my second. Do you have any suggestions on how to approach them.
    Thanks again
  8. Infiniti85

    Infiniti85 LoanSafe Member

    Call the number and ask what documents you have to send in to make a settlement offer. It's a very fast and easy process. They'll want bank statements, tax returns, 2months pay stubs, hardship letter, they'll have you fill out a buyer workout form where you include a budget and tell them if you're selling/staying etc.
  9. sdorn

    sdorn LoanSafe Member

    Any advice on what to include the hardship letter? We don't know if we will stay or sell but either way the settlement will aid the process. Here is what we have so far:

    I have been a very good and reliable customer for years, as my past credit history would show. However, due to situations out of my family’s control, such as current economic hardships and the housing market, I have come to the point where I am no longer able to make my current mortgage payments.

    I bought my house at a time when my husband’s business was starting to thrive and never would have expected the reduction of his income we have seen over the last few years. My husband and I have been struggling to make our monthly mortgage payments, living expenses and taxes for almost two years, but found ways to manage between borrowing money from family, paying bills with credit cards, selling personal items, and stringent budgeting. These avenues are exhausted at this time.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:eek:ffice:eek:ffice" /><o:p></o:p>

    <o:p> </o:p>
    Our house is currently more than $100,000 under water so we have a difficult road in front us to sell it but our options for keeping it are just as challenging. I would like to offer you $ 7,000 to settle my mortgage with you. I also want you for all the guidance and understanding I have received throughout this process.

  10. Infiniti85

    Infiniti85 LoanSafe Member

    Looks good, delete the last line.
    Add some info about your first loan balance, what you originally paid, and what you think the current value is. You want them to read it and immediately see that the 2nd mortgage is completely under water. It wouldn't hurt to go into a little more detail about the financial hardship, give them some numbers.
  11. sdorn

    sdorn LoanSafe Member

    How late can you be on your payment before it hurts your credit? We are waiting to hear a response to our offer to settle our 2nd and our payment is do on the 15th. We are also in process with a refi on our 1st where we can't have anything negative come up affecting our credit.
  12. sdorn

    sdorn LoanSafe Member

    I submitted all the info requested, they did the appraisal next day, and I called to make sure they had everything. They said they had all that they needed and to wait for a negotiator to call me. Well, a week later I call them and they say they need 08 and 09 taxes and I need to fill out the customer hardship package form on their website. I am confused because they obviously lost the tax stuff we sent and we sent a harship letter and offer already so why do we need to fill out this form that they never mentioned before. I wonder if they think it is a short sale and not a settlement offer. The woman I talked to this morning didn't even know there had been an appraisal. Now she is apparently assigned to my case. The last guy I had talked to was commenting about the pictures from the appraisal and said to just wait for the negotiator to call. Very confusing. What should I do next besides sending the newly requested info?
  13. samerbayer

    samerbayer LoanSafe Member

    Sucess with PNC HELOC

    I'm happy to announce that I settled my HELOC which is slightly under water for 21% of the total. The advise on the loansafe forum where right on the money and helped me negotiate the deal. Thanks to everyone who shared their experience here.
    Last edited: Nov 22, 2013
  14. Gaucho

    Gaucho LoanSafe Member

    If you don't mind me asking, how big was your 2nd and who did you settle with? I have a big 2nd (700k) with Realtime Resolutions that I would like to settle.
  15. Walnuts

    Walnuts LoanSafe Member

    What sorts of things did they ask you? What sort of information did you offer up to them? I'm curios to know how you spoke to the negotiator.

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