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Want to Settle w/ Green Tree Servicing

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by valjean, Jan 17, 2011.

  1. valjean

    valjean LoanSafe Member

    I’m looking for some advice on how to proceed. Here's the breakdown:
    1<SUP>st</SUP> Mortgage w/ Citi $205,000
    2<SUP>nd</SUP> Mortgage w/ Green Tree Servicing $113,000
    Home worth Appx. $280,000
    Discharged CH7 11 of ’09. Have been making payments but the well is running dry every month. I’d like to settle the 2<SUP>nd</SUP>. What is the best way to go about it step by step? Should I quit paying the 2<SUP>nd</SUP> then send a settlement offer or send one from the get go? Should I try to call first and explain the situation? Help Please?
  2. Erik Sandstrom

    Erik Sandstrom Mortgage Expert - Call 1-800-779-4547

    I can't advise you either way to make a payment or miss them.

    Especially with having that much equity leftover in the 2nd mortgage. That's one thing you definitely would want to worry about, if the property does foreclose the 2nd mortgage will still get a significant payoff. If you're looking to settle, they probably wouldn't do it for anything less than the difference between the 1st mortgage and the value of the home. Meaning the settlement figure would be no less than $75,000.00.

    There is always a cost to foreclosure for the bank, you may be able to negotiate it a little lower...

    Most of the time you only see 2nd mortgages settle when there is a serious amount of negative equity. Once the 2nd mortgage exceeds the properties worth it is essentially unsecured debt and you can file a Chapter 13 and strip the lien. But you don't have the ability of filing a bankruptcy with one just discharged in 2009.
  3. yomann

    yomann LoanSafe Member

    Both your 1st & 2nd have been discharged in CH7.
    If you are having difficulty paying both, I would stop paying the 2nd right away, and keep the 1st current.
    Even though the 2nd has some equity, they are unlikely to foreclose, as they would have to buy out the first, pay for foreclosing costs ($50K?) and sell the property to recoup any money.
    I can't advise you for sure, but that's what I have done (see signature).
    Do not be anxious to contact the 2nd. Let them charge off after 6 months of non payment. Then let it lie for another year. Time is on your side.
    Read the forums on 2nd's and you will find a lot of discussion on this very topic.
    Use the Google custom search box on the top right of the page.
  4. daneam

    daneam Senior Member

    yomann were you the one that has a second with SLS that is in the money for at least $200k? did SLS threaten to foreclose on you? mine is SLS too it is discharged but there is a chance it is in the money (without counting the cost of foreclosure) so I am kind of worry what is going to happen....
  5. yomann

    yomann LoanSafe Member

    Yes; I am the one ........
    My 2nd was originally with PNC, who charged off after 6 months. Then I filed BK7 and got discharged.
    Last Nov. I get a notice from PNC that the servicing of my loan has been transferred to SLS. (What's up with that ..... ?)
    So, no payments on the 2nd for 19 months, and no contact from SLS.
    I am just letting sleeping dogs lie, and taking Tom Eason's advice and not contacting SLS.
    Should SLS threaten to foreclose, I'll call their bluff. If it is for real, I will tell them I will be defaulting on the 1st and let the home go to FC.
    If the 1st FC's and there are no bids, the home reverts to the lender at a price equal to the balance of the 1st loan, with the 2nd getting "sold out".
    My goal is to eventually settle with them for $5K to release the lien.
    Meanwhile, I am living in my house with a modded 1st, with a payment that is $200/mth less than fair rental value (after tax benefits are factored in.)
  6. valjean

    valjean LoanSafe Member

    Thanks, I am new to all this and I, or we (my wife is in on this w/ me) are trying to figure it out. I am prepared to walk but don't want to. That being said I'm not a gambling person, and this is a huge roll of the dice.
  7. Erik Sandstrom

    Erik Sandstrom Mortgage Expert - Call 1-800-779-4547

    It is definitely a big choice to make - if you walk, you'll probably be able to live in your home for awhile before they proceed with foreclosure and you could always do a strategic default.

    If you have any further questions, don't ever hesitate to ask.
  8. Housebroken13

    Housebroken13 LoanSafe Member

    I have a 2nd with Greentree:

    Balance of 1st Mortgagw / BOA - $278,000
    Balance of 2nd w/ Green Tree - $46,000
    Current average market value of home - $215,000

    Haven't paid Green Tree since July, nearing 180 days late. Received what looked like a NOD, but read like an Intent to Accelerate. Discharged from Chp. 7 in 2009, apparently reaffirmed 2nd in the BK. Not worried about GT foreclosing, extremely underwater, I was told that I could file for a Chapter 13 to strip the unsecured lien at some point. I am also hoping to settle this debt.
  9. Erik Sandstrom

    Erik Sandstrom Mortgage Expert - Call 1-800-779-4547

    Housebroken, the ball is in your court. They can't proceed with foreclosure because they woudnt get a dime! :) Sometimes you will get a letter in the mail that looks like a charge-off letter. That's when they sell the debt off, you can either negotiate with the people who purchased the debt or with GT now. Many times these 2nd mortgages are sold off for pennies on the dollar, sometimes even .2 cents so when you make a settlement offer to them that's higher - they might just accept it.

    The more payments you miss, the more willing it seems like they get to settle.
  10. HomeinAZ

    HomeinAZ LoanSafe Member

    We filed Chapter 7 two years ago and it has already been discharged. We did an inhouse mod with B of A for our 1st. Our second loan with SLS has a balance of $51,000. I have not paid the 2nd for 11 months. I started the short pay off process back in July and originally offered $3,100 to settle. They came back with a $25,000 offer. A few months later I offered $5,000 to settle and that too was shot down. This time SLS did not make a counter offer. In October my loan was sent to SLS recovery so I gave them a call last week. The CSR said he and his manager can make a decision on my short pay. He told me he's sure we could work something out if I offered $5,100. The next day SLS approved my offer and I received the agreement which states SLS will release the lien secured by the deed of trust and also release me from liability.

    I wired SLS the money on Thursday and received an email on Friday that the funds were received. I think it takes 30-60 days to receive the lien release from my county. I have never received a collection call from SLS and when I did call in they never asked me for a payment. Most likely because of my Ch 7 discharge.

    This website has been a big help for my 1st modification and the 2nd short pay off of 10%.

    Bank of America $203,000
    SLS $51,000
    Home is worth about $200,000
  11. Erik Sandstrom

    Erik Sandstrom Mortgage Expert - Call 1-800-779-4547

    NICE JOB HomeinAZ - That's what I like hearing. Great job settling, that's what I see as an average across the board is around 10 cents on the dollar. Start low and see where it goes!
  12. valjean

    valjean LoanSafe Member

    I have missed the February Payment of my second. I believe they will try and contact me to collect. How should I respond? What if they don't contact me? Keep in mind I'd Like to settle.
  13. Housebroken13

    Housebroken13 LoanSafe Member

    Valjean,

    Do nothing, just ignore the calls and anything you get in the mail. If you are upsidedown they can't do anything. You'll have to ride this out for a few months, be resilient and patient. It will take time before you get to a settlement with them. I haven't #### in over 6 months now.
  14. valjean

    valjean LoanSafe Member

    Missed 2/15 payment. Three calls total from GT. 1st 2/27 -automated left message. 2nd 2/28 -automated and got a live person to tell them that they shouldn't be contacting me due to the CH7. 3rd -Live person left message. I called back to let them know that they can't contact me. They keep asking if "I intend to keep the Collateral"? I answer I am going to stay till I can't. They asked if the can contact me via phone or mail i said they can't call me, but they can send me mail. I hope I didn't screw up by doing that. Any Ideas? It's hard not to be emotionally attached to the situation.
  15. TomEason

    TomEason LoanSafe Guide Staff Member

    valjean
    I concur with Housebroken's advice. It might help if you tell us what state you're in. And if your GT 2nd is purchase money or not. But, no matter, where it me, I would no longer communicate with GT for many months. Eventually you may want to settle with them, if for no other reason than to reconvey the 2nd lien. Even though the note was discharged in your BK, the lien remains; and GT still has the legal right to foreclose. But GT is essentially a substandard outfit and very clueless. You can go to the thread "Strategy for Settling Your 2nd" for lots of good info on what to do.
  16. valjean

    valjean LoanSafe Member

    have received several more auto calls from Green Tree. They are not to contact me due to the CH7. How do I get them to stop. A letter from my BK Attorney? any suggestions?
  17. TomEason

    TomEason LoanSafe Guide Staff Member

    valjean
    A certified letter would be good. It doesn't need to be from your BK attorney; it can be from you or another lawyer, as long as you can cite the applicable law forbidding them from contacting you, along with the consequences of their continued flouting of that law. You will want to retain any evidence that GT has tried to contact you. As I said before, Green Tree is a very clueless substandard outfit with highly untrained employees.
  18. Housebroken13

    Housebroken13 LoanSafe Member

    Certified & Signature Confirmation letter from you requesting they cease and desist immediately (you can use Google for a good letter template). Did you reaffirm with them? If not they are in violation of the Chapter 7 by even contacting you directly. After 6 months of non***ment they will charge off. At which point you prob have another 6 months till it goes to a collections agency, who will be much easier to settle with.
  19. valjean

    valjean LoanSafe Member

    Still getting calls almost daily from GT. I have not reaffirmed with them. I am in Colorado. Can I sue them for breaking the CH7 rules? When they call they pull the BS of "what is your intention with the home?" I simply say "I don't know". Do the think if they are not directly asking for money that it isn't a collection call? I'm only 2 mo behind, I'm sure that they will get more aggressive at 6 mo.
  20. TomEason

    TomEason LoanSafe Guide Staff Member

    valjean
    First of all, I recommend you always answer their question with a question of your own. In this case, "why are you calling me?" You likely have recourse against GT for calling. Keep a detailed log of date and time of the call, and the conversation as well as you can remember it. If nothing else, GT can be fined (penalized). GT is a sub standard company with poor management and ignorant untrained employees. It doesn't surprise me they're committing such a bonehead move.

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