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Beginning negotiations with Wells Fargo on 2nd

Discussion in 'Debt Settlement' started by WalkinBlues, Oct 17, 2013.

  1. WalkinBlues

    WalkinBlues LoanSafe Member

    ok, about 7 months in i got the letter, "In an effort to resolve your charged off account..."

    they want to settle for 40% and will mark my credit report 'settled in full'

    fine print at letter specifically mentions i will get 1099'd

    im looking for advice on negotiating. my current strategy would be:

    -offer them 2% as thats all i have available, as i will have a large, non-negotiable tax burden that i will need to pay
    -when we do finally come to a number between 5-10% agree on the condition that they do a pay-for-delete. i know this is a long shot but i have to try.

    any other tips on negotiating? based on advice from here (which has been spot-on so far), i would not be providing any form of financial documentation to them and i will not settle for anything over 10%.

    Is it best to communicate in writing or talk to them on the phone

    thanks
  2. Evan Bedard

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

    Hello WalkinBlues,

    IMO it would be best to communicate with Wells Fargo in writing and at this point I recommend sending a counter offer lower than your goal amount - 2 percent sounds perfect. Make sure to keep an eye on home prices in your area and never agree to send in any financial documentation to settle an underwater 2nd.
  3. WalkinBlues

    WalkinBlues LoanSafe Member

    do you guys normally just mail it or is certified mail return receipt useful?
  4. TomEason

    TomEason LoanSafe Guide Staff Member

    WalkinBlues

    Thanks for your question.

    I have usually sent counteroffers via ordinary mail.
  5. bigshan1

    bigshan1 LoanSafe Member

    Hey Walkin' Blues. I'd ignore the %40 percent settlement letter as well as any calls. I got the exact same offer, ignored it and a couple months later I received the %20 settlement letter. That's when I called the WF collection agent and negotiated down even further. Unless I've missed something, the Mortgage debt relief act expires Dec 31st 2014. So you're good.

    Good Luck
    Shane

    http://www.loansafe.org/forum/debt-...ries-settling-2nds-post395746.html#post395746
  6. WalkinBlues

    WalkinBlues LoanSafe Member

    well i got another offer alright - this time was 50 % though.

    not sure if that was completely independent of the other offer (i def got a barrage of WF calls lately), or if they are watching the value of the home appreciate. its definitely come up a bit on zillow in the last few months due to recent nearby sales, but is still well underwater.

    thoughts?
  7. hooligan

    hooligan LoanSafe Member

    Don't trust Zillow valuations.

    Get a local Realtor to do a proper CMA on your home to determine what it's worth. They should do it free of charge.
  8. WalkinBlues

    WalkinBlues LoanSafe Member

    yeah its not like im giving them any financial info in any case. i know the house is underwater and dont have incentive to pay a realtor for an evaluation.

    advice on how to proceed with wells fargo? wait it out
  9. hooligan

    hooligan LoanSafe Member

    CMAs are almost always done at no cost to you.

    Feel free to counteroffer at a price below your target amount - what harm can it do?
  10. WalkinBlues

    WalkinBlues LoanSafe Member

    did that already. no response
  11. Evan Bedard

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

    I concur with Hooligan, it would be wise to request a CMA from a local realtor so you have a better estimate on hand. In any case 50 percent is just ridiculous and I recommend you continue following the "Strategy" until you receive a reasonable offer.

    Good luck!
  12. WalkinBlues

    WalkinBlues LoanSafe Member

    well tried calling them today. they basically said they cant accept anything under 50 percent and wouldn't even entertain the 50 percent i offered to come up with. i even quizzed them as to how they can say that they dont go below 50 percent, when they've previously sent me letters for 40 percent settlement a few months prior. They originally said 'well they changed our matrix beginning january 1, and we dont go below 50 percent now'. after pushing them they said they can 'take an offer to upper management but it would need to be close to 50 percent'. I asked if 10 percent is close to 50 percent and they said no...

    so i told them to get in touch when they are ready to go lower.

    they were playing the head games '50 percent is such a fantastic deal for you!', 'we NEVER go as low as you are offering', etc.

    so i wait....
  13. TomEason

    TomEason LoanSafe Guide Staff Member

    WalkinBlues

    Thanks for your post.

    Regardless what WF says, they will eventually settle for much less. In the meantime, I recommend you never again communicate with WF until they make you another offer. Your decision to wait is a good one.

    I recommend you seek to eventually settle by following the guide at post #1 of the following thread. Your patience will be required as this will likely be a long process. Good luck.

    http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd-94.html
  14. WalkinBlues

    WalkinBlues LoanSafe Member

    yeah thats my plan. this was my first stab at a counteroffer. im in no great hurry but was dipping my toe in the water. someday ill get that 20% letter.
  15. WalkinBlues

    WalkinBlues LoanSafe Member

    also why cant this board handle 'percent' signs? what am i doing wrong?
  16. WalkinBlues

    WalkinBlues LoanSafe Member

    post # 12 should say "well tried calling them today. they basically said they cant accept anything under 50 percent and wouldn't even entertain the five percent i offered to come up with."

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