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just got served for 2nd mortgage -

Discussion in 'Debt Settlement' started by GAJammer, Feb 23, 2012.

  1. GAJammer

    GAJammer LoanSafe Member

    So i have read thru it seems like a hundred threads and havent found anything really close to my situation. So if there is a thread please send me the link to read up on.

    My situation:
    Owe 240k on first - current
    Owe 60k on second - haven’t made a payment in 12 months. Full amount charged off in december 2011
    Home Value - 215 - 220k
    State Georgia

    Received a call from the recovery department and I was offered a 25% settlement back in Nov 2011 - about 15k on 60k. i declined as at the time i didnt have 15k. I counter offered at 6k and they declined. I haven’t heard a peep from them since until i was served with court papers last week with a lawsuit against me now for the original 60k. I called the bank recovery line and they said that all negotiations now have to be worked thru the lawyers office. I called the lawyer yesterday and talked with a secretary that was working my case. She gave the spill that i could make a offer but typically nothing under 60% would be accepted. She said that all offers would be sent to my bank for sr management approval or denial. is that true? if its charged off, then why would the bank still be involved? I counter offered 6k/10%. also, she said that the bank would need financials like tax returns, bank statements and a current pay stub before a decision could be made... hummm?

    Any advice on next steps would be greatly appreciated.
  2. Evan Bedard

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

    What exactly did the lawsuit state?
  3. donnac

    donnac LoanSafe Member

    Who is the 2nd mortgage with???
  4. GAJammer

    GAJammer LoanSafe Member

    First is with WF, no issue there
    2nd Loan is with SunTrust... lawsuit with SunTrust having attorny represent

    Lawsuit states plaintiff as SunTrust vs me

    - Defendant is liable to Plaintiff in the principal amount of 60,000.00 a loan contract... also says liable for interest.... plaintiff has the right to demand attorney fees...

    this is a loan secured by what was the equity in my house where now i'm negative equity on the first and second.

    House value is around 220k, owe 240k on first and 60k on second.

    again ST told me i had to work thru the attorney and that it was charged off from them. and the attorney said that they had to get the offer approved by ST SR management??? and that they would probably require a hardship letter, 2 years taxes and 2 months bank statements and a recent pat stub. is this just the attorney trying to get info from me to see what i can afford in their eyes? seems fishy.

    thanks all for your feedback...
  5. ddonnas21

    ddonnas21 LoanSafe Member

    What state are you in? There are some states where they can sue instead of foreclosing. In my settlement talk with HSBC they also requested all of the same financials from me and also an appraisal/internal BPO. Their rep said without all of that they would not even consider discussing a settlement of any kind and I have already been discharged from their loan in a Chap 7 in which I did not reaffirm them. So far I have refused to send the financials but I also have not received any settlement offers either. My home is also valued at way less than my 1st mortgage balance.

    Good luck with SunTrust as from what I have read they seem to be as hard to deal with as HSBC!
  6. ddonnas21

    ddonnas21 LoanSafe Member

    I just saw where it says you are in Georgia. Sorry I missed that before.
  7. Casper

    Casper LoanSafe Member

    Question to ask yourself....

    What do they get out of a court proceedings?
    It costs them money. So does foreclosure. If they get a judgment, so what? They would put a lien against your house? They already have that until the release on the loan is settled.

    I don't know if this is possible: If there is a date for court, i would show up and see if you could settle for a more comfortable amount, based on what you have available.

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