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Second Loan with Green Tree...

Discussion in 'Ask the Attorneys?' started by Luis California, Aug 23, 2013.

  1. Luis California

    Luis California LoanSafe Member

    Hello Tom, hopefully this is the correct forum to post</SPAN>

    This is my current situation;
    Original Loan Amount :</SPAN> $480,000</SPAN></SPAN>
    First Loan (SPS): $335,000</SPAN>
    Second Loan (BOA): $65,000
    Total Balance: $400,000</SPAN></SPAN>

    My first Loan has always been current. The second loan was with Bank of America but I stop sending payments around September 2012. So I received a letter ‘Notice of intent to forecloseâ€. After three months, I received a letter from BOA stating that the loan was transferred to Green Tree, and that I had to start sending my payments to them.
    I am following the strategy on how to settle your second loan. I have been in this process for almost a year, but I have checked on Zillow and my house is now worth 412K, so this means that my loan is not underwater.
    What options do I have, I want to keep the house and I have not heard from green tree to settle .</SPAN>

    I am in California.

    Thank you</SPAN>
  2. Evan Bedard

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

    Welcome and thanks for joining the LoanSafe community.

    I recommend you contact a local RE agent who is familiar with your neighborhood and request a CMA. Although Zillow is often fairly accurate, they can be off depending on the area you reside. For example, I know someone in my city who said his house was listed as worth $510K on Zillow, but when he ordered an appraisal determined that his home was actually worth $690K. It's hard for them to get an exact estimate unless properties in the area are tract homes or of very similar shape and size. However, even if you do have $12K in equity, it could cost the 2nd mortgage holder another $40K or more to initiate the foreclosure. Therefore you may very well still be able to settle the account for a reasonable amount. Have you received any notices from Green Tree now that they've acquired the account?
  3. Luis California

    Luis California LoanSafe Member

    Thank you Evan;

    Please see the attached file. This is the only letter I have received from them.

    View attachment 1235

    Thank you.
    Last edited: Aug 23, 2013
  4. TomEason

    TomEason LoanSafe Guide

    Luis California

    Thanks for your posts. Since your 2nd is underwater they won't FC. I recommend you continue to follow the Strategy. FYI, you can safely add about $50K to the balance of your 2nd. That represents the costs that GT would bear post FC to resell the REO property. Those costs include carrying costs, fixup costs, and cost to resell, including RE commission. Needless to say, that amount will be higher for a more expensive property. Good luck!
    Luis California likes this.
  5. Luis California

    Luis California LoanSafe Member

    Thank you Evan;

    Yes, I receive letters every month. The letter states that I need to pay off the entire 65,000. It's been awhile now and I have not received any settlement letter..

    I am sticking to the plan and see how long this takes.

  6. Luis California

    Luis California LoanSafe Member

    It's almost been 4 years, and the loan has been transferred several times now. I have not received any settlement letter and house prices are going up.

    Any Ideas about changing the plan?

    Thank you
  7. Luis California

    Luis California LoanSafe Member


    What are the status of limitations here in California, and how can they help?

    Thank you.
  8. spike9999

    spike9999 LoanSafe Member

    Hi Luis-I don't know nor have I researched CA - but Driftwood has discussed this and according to his posts "As far as the SOL in CA, the clock doesn't start until the 2nd becomes a SOJL. And that would only happen if the 1st completes a FC. In CA as long as a lien exists against the property there really isn't any SOL that would apply. The lienholder can action that lien regardless of the age"

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