Home Loans and Support

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;
    </SPAN></SPAN>
    Original Loan Amount :</SPAN> $480,000</SPAN></SPAN>
    First Loan (SPS): $335,000</SPAN>
    Second Loan (BOA): $65,000
    </SPAN>
    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.
    </SPAN>
    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.
    </SPAN>
    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 Staff Member

    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!

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