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PNC and 2nd Mortgage Settlement...Just Beginning

Discussion in 'Debt Settlement' started by Shifty, Aug 22, 2011.

  1. Shifty

    Shifty LoanSafe Member

    Hello everyone,

    I am just beginning the process of settlement with PNC Mortgage. In 2008 we filed Chapter 7 and did not reaffirm either of our mortgages. We have never had a late payment on either of them but are now completely upside down due to the economy and will need to sell next summer for a variety of reasons. Our breakdown on our mortgages are as follows:

    1st: $108,000
    2nd: $27,000
    Total: $135,000

    Our realtor just valued our home at $98,000 and that is possibly being a little on the high end. So, with that in mind, we have been planning on a strategic default knowing that there is no equity in our house. We are still current on the 1st and plan to remain so and the last payment on the 2nd was for May 2011. We received a letter on Monday stating that we are late and it could go to collections and so forth. I sent them a settlement letter in the mail offering $3,200 to settle the account and release the lien and have not heard anything back from that. However, I did submit a secure message on their website just to see what their response was and they responded saying they do not settle. So, I will just continue to wait this out and give it a little more time. If they want the house, they can have it, but they won't get any money anyway, so it seems that a settlement of some sort is their best option. Let me know if you guys have any ideas for working with these horrible people. I will keep everyone updated on any changes.
  2. Redlight

    Redlight LoanSafe Member

    Hey Cat,

    The idea behind trying to settle on the 2nd mortgage, even after discharge, is that we do not want to foreclose on the house. A foreclosure starts the clock of a minimum of three years before you can even think about getting another mortgage. However, if you can settle the 2nd mortgage for a fraction of the total, you may be able to sell the house and break even...or almost. There is quite a lengthy sticky thread on the topic at the very top of the debt settlement forum. Hope that helps you out.
  3. Cat Damiano

    Cat Damiano Mortgage Wars

    Hey Redlight,


    This member DOES want to foreclose, that is their goal. Also FYI, I am well aware of all of the threads and stickys, as I am the moderator of LoanSafe.
  4. TomEason

    TomEason LoanSafe Guide Staff Member

    Shifty

    Thanks for your post and welcome to Loansafe. Nobody can render credible advice without knowing your state.

    In the meantime I recommend you visit the "Strategy for Settling Your 2nd" thread and read the guide article at post #1.

    Good luck.
  5. Shifty

    Shifty LoanSafe Member

    Hello everyone. I actually plan on trying to settle with the 2nd mortgage although I said strategic default. Update for today, I just received a call from PNC's Loss Mitigation department and they left a voice mail to call them back. I was wondering if anyone here had any suggestions for the next phase. I know they will probably completely dismiss my settlement of $3,200 but also hope they don't try to push for a modification. I would rather let the house go than modify it since that would reaffirm the mortgage. Oh, and the 2nd has a balloon payment at 15 years.

    Tom, the state is Texas, hope that helps.
  6. TomEason

    TomEason LoanSafe Guide Staff Member

    Shifty

    Thanks for your update. Did you already visit the thread I recommended in post #4 and read the strategy guide?

    All your questions are answered there.
  7. Shifty

    Shifty LoanSafe Member

    Tom,
    I have scoured through the "Strategy for Settling Your 2nd" thread and have found it VERY informative. I guess my main question and I assume it can vary, but at what point would you say "now is the time to initiate contact?" We are only 3.5 months late and I know the longer I wait, the better my chances are going to be so I will follow the guide and continue to ignore them for a while longer. Thank you!!!
  8. TomEason

    TomEason LoanSafe Guide Staff Member

    Shifty

    Thanks for your post. Follow the guide. You should never make contact with the lender until said lender makes you a settlement offer.
  9. NoMoreBills

    NoMoreBills LoanSafe Member

    Settlement Accomplished with Wells Fargo

    It has been almost 2 years since we were discharged in California. We currently owe $340 on our first mortgage and (did) owe $200K on our second with Wells Fargo. Shortly after we were discharged, we quit making payments on our 2nd with Wells. I first made an offer to settle about 3 months after we quit paying and offered 8 cents on the dollar, the countered at 20 cents on the dollar, so we just kept not paying. In about May of this year, I again offered 8 cents on the dollar and they came back with 10 cents on the dollar, which we agreed to accept. We have now settled for $20K on the $200, and just yesterday received our Notice of Reconveyance of Deed of TRust.
  10. TomEason

    TomEason LoanSafe Guide Staff Member

    NoMoreBills

    Congratulations on your settlement! Good job in being patient and persistent in your negotiation. And thanks for posting the story. Would you mind posting your story on this thread? I and other members would greatly appreciate it.

    www.loansafe.org/forum/debt-settlement/40564-success-stories-settling-2nds.html

    Thanks!
  11. igotpar

    igotpar LoanSafe Member

    Shifty,

    What state is your property? So when you finally settled w/ WF at 10 pct, how many month had passed since the first missed payment? Sounds like your settlement worked out really well, good for you!

    igotpar
  12. Shifty

    Shifty LoanSafe Member

    !!!UPDATE!!!

    So yesterday we received a certified form letter from PNC Bank stating that the loan was being charged off. From doing my research last night it looks like that means PNC (they service the loan) and the investors have sent this to collections. However, being that I did not reaffirm the mortgage, I don't believe the collection agency can try to collect, but they could foreclose if they wanted to. So do you think I would have a better chance to settle now that it has been written off and will they try to communicate with me or just let it sit there?
  13. HopingtoFind

    HopingtoFind LoanSafe Member

    I would hate to disappoint, but charge off is just an accounting term, it doesn't effect anything in terms of settling with the 2nd process. It doesn't even necessarily mean that account will be transferred to CA, although it might be. As TomEason advised just continue following the guide.
  14. Shifty

    Shifty LoanSafe Member

    HopingtoFind,

    Darn...I was hoping to be making some progress...guess it is back to waiting.
  15. TomEason

    TomEason LoanSafe Guide Staff Member

    Shifty

    I'm curious. Can you tell us why you're in a hurry to settle? Is being patient and doing absolutely NOTHING difficult for you?
  16. Shifty

    Shifty LoanSafe Member

    Credit Pull from PNC on Mortgage Not Reaffirmed

    Hey guys, to anyone that knows, I was wondering if PNC Bank is legally able to pull a credit report for a mortgage that is not reaffirmed after chapter 7 bk. The loss mitigation division has pulled it and I will dispute it anyway...just wondering. I haven't paid anything on this 2nd mortgage since last May and I am extremely under water, maybe they are getting nervous, or maybe it is just protocol.
  17. TomEason

    TomEason LoanSafe Guide Staff Member

    Shifty

    Thanks for your post. An existing creditor is legally able to access the debtor's credit file, per the provisions of the FCRA. I seriously doubt PNC is getting nervous, LOL.

    Since the debt was discharged in your BK (the 2nd lien does remain of record), I'm not certain if federal BK law supersedes the federal FCRA. It might behoove you to conduct more research in order to cite the authority in your dispute letter to PNC.

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