2nd mortgage settlement

Benhur

LoanSafe Member
Feb 7, 2009
8
0
0
Hello everybody,

this is regarding my 2nd home mortgage loan. the loan is serviced with resurgent mortgage serving. i think that the loan is owned by Anson
street llc. (might be wrong though). Anyways, My balance on this 2nd loan is 104997.99. they have decided to except a settlement offer of 12,000.00, about 12% on the dollar. they sent me 2 pages with instructions on how to complete the settlement. I pasted here what seems to be the most important half part of the settlement. (please see below) The rest of the pages has some descriptions of a persons rights and then goes on with the rest translated into spanish.
Is this the basic way of settleing this account?, or do they still need to provide me with a more solid binding agreement between me and them in regards to settling this amount? . my concern is that once i pay this money, will all this be over and they have no right by law to try and collect from me any other balance of this amount. i was hoping to take the settlemnt agreement papers to a lawyer so that he can review them. But there isnt much here to review in these two pages. Any help or advice will be highly appreciated,. thank you all very much

[(Dear Valued Customer(s),
Anson Street LLC has authorized Resurgent Mortgage Servicing, a division of Resurgent Capital Services L.P.
to offer you a settlement opportunity on the above referenced account. Upon clearance through the banking
system of the settlement amount indicated below, your account will be considered settled. Payment of the total
settlement amount must be received in our office no later than the close of business on the date indicated
below. If payment is not received in the indicated amount and within the time frame indicated, this offer will
be null and void. Resurgent is not obligated to renew this offer.
This offer represents a substantial savings over the actual amount owed on this account and is an
opportunity for you to take care of this obligation at a greatly reduced cost.
Current Principal Balance: $104,977.99
Settlement amount: $12,000.00
Payment Due Date: 3/30/2013
Please contact our office at (800) 365-7107 to discuss any questions]
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Hello Benhur,

You are right, this is a very simple settlement agreement they have sent you and it does state that the account will be "settled" once the funds are received. However, what state are you located in? Also which bank was originally servicing his account before it was charged off?
 

Benhur

LoanSafe Member
Feb 7, 2009
8
0
0
hi evan,
im in california. resurgent mortgage servicing has always been servicing this loan. I purchased my home in feb 2007. this loan was a fixed loan at 10 percent interest rate. after 2008 when the mortgage crisis came and up until last year they have only reconstructed this loan twice, both times for 18 months only. they never wanted to help me for the life of the loan. long story short, since last year around september, i had come to a conclusion that i had to stop paying my second mortgage. around the end of that year they tried and offer me another modification but i couldnt except it. i told them that this time now i wanted to settle the loan. (i took out a loan and borrowed some of the other money), i did fill out the financials and everything they requested from me. i offered them 12,000.00 to settle and when i called them back a week later they excepted my offer, this was around the end of feb. so from my understanding, this account may not be charged off yet because im steal dealing with resurgent. i have not recieved any calls or letters from any collection agency regarding this loan.
thanks , any input will surely help. i would really like to settle this loan and keep my home. im just not so sure of the steps to take so it wont haunt me in the long run.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
around the end of that year they tried and offer me another modification but i couldnt except it. i told them that this time now i wanted to settle the loan. (i took out a loan and borrowed some of the other money), i did fill out the financials and everything they requested from me. i offered them 12,000.00 to settle and when i called them back a week later they excepted my offer, this was around the end of feb. so from my understanding, this account may not be charged off yet because im steal dealing with resurgent. i have not recieved any calls or letters from any collection agency regarding this loan.
You seem to be in the perfect position to settle and you may be able to negotiate a lower amount. Since you are in CA (as long as this loan is underwater) the 2nd mortgage holder is in no position to pursue foreclosure and this is probably why they were quick to accept this $12K settlement. As long as your 1st mortgage is current there is no rush to settle this account, however, since they have your financials they know exactly how much you can afford to pay for the settlement. The letter you were sent seems suffice from the information you posted. Once settling your 2nd, will your 1st mortgage be affordable or are you working to modify that mortgage as well?
 

Benhur

LoanSafe Member
Feb 7, 2009
8
0
0
hi Evan,
Thanks for your responses. First of all, yes, my home is upside down. So i do understand you about the 2nd lender not wanting to foreclose. I was thinking the same thing about me being able to settle for less. i just am not to sure on how much to offer. Any suggestions would really help. As for my 1st mortgage, well its with citi and as of 2010 i was put on the hamp. June of 2013 will be my 3rd year, with 2 more years to go at @ 2% interest. 6th year @ 3%, 7th year at 4%, and then for the life of the loan capped off at 4.875%. I was given a Fixed 40 year loan under the Hamp. My principal balance is 460,000. But the 60 thousand is now under a deferred principal balance. so far things are looking good in order for me to keep my home. Yes, im still under water on my first, but im hoping that with at least my 2nd gone things will get better in the future???
Is there any examples of how a settlement agreement should look like? I see that you mention that the letter they sent me is suffice, meaning that its sufficient and a good and legit letter to go ahead and pay them? Again, i cant stress the fact that i would hate to get surprised if they came trying to collect in the future. I do know that the forgiveness act was extended another year. And i hope that i fall in that category of not recieving a 1099? is the debt act for state and federal?
Once again thank you very much
 

Benhur

LoanSafe Member
Feb 7, 2009
8
0
0
Hello every one,
I just have a quick question and would really appreciate some feed back, I am about to settle my second loan. I did get them to agree now to 10000.00 instead of 12000.00. My concern is the settlement letter they send me, i gave some info before on how the language of the letter looks like. Do i need them to specificaly state in the settlement letter that upon me paying the agreed amount , that they will promptly do what they need to in order to remove the lein? A advisor told me that i should have them state that, but the lender refuses to make the changes because they are telling me that the removal of the lein is included in the process of the settlement. in other words by the letter stating that my account will be considered settled once i pay in full the agreed amount, that wording "considered settled" will include the process if the lein removal.
thank you all very much, please help me
 

Ready2Run

LoanSafe Member
Aug 11, 2010
611
18
18
San Francisco Bay Area, CA
My settlement letter from Chase specifically stated that the loan would be settled in full, the lien would be removed and the credit bureaus & IRS would be notified. So far all but the IRS has happened. Maybe they notified the IRS already as well, but I haven't received a 1099 yet. Then again I don't expect one until Jan. 2014.

I would push that it specifically states that the lien will be removed. But that's me....
 

jhjordan

LoanSafe Member
Jan 23, 2011
96
1
8
Hello All,

I have been posting for some time in other threads here, and I just received an offer of a permanent modification (no trial requested) on my first lien with BofA as servicer for Wells Fargo. However, before I got to this modification, BofA told me I had to complete a trial mod on my HELOC in order to get offered a mod on my first. In March I received a permanent mod on the HELOC with a payment of 486.00 and a balance of 126,000. However, my home is still underwater by 2 1/2 times the combined loan amounts, especially because BofA would not give a principal reduction. Now that I've (finally!) received an offer of permanent mod on the first, how do I go about settling the HELOC with BofA? I am in California, and I am due to make the first payment on the permanent mod for the first lien on June 1. Also, I completed a Ch. 7 last July, and my BK attorney had mentioned that it is possible to do a Ch. 13 after a 7 that will strip off the HELOC but we could not do that before getting a mod on the first because the payment was so high. Now that it's been adjusted, what's the better choice? Should I seek a settlement on the HELOC or remove it with my attorney? The new payment on the first is still a bit too high.

This is a truly great site, by the way!
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
Hello All,

I have been posting for some time in other threads here, and I just received an offer of a permanent modification (no trial requested) on my first lien with BofA as servicer for Wells Fargo. However, before I got to this modification, BofA told me I had to complete a trial mod on my HELOC in order to get offered a mod on my first. In March I received a permanent mod on the HELOC with a payment of 486.00 and a balance of 126,000. However, my home is still underwater by 2 1/2 times the combined loan amounts, especially because BofA would not give a principal reduction. Now that I've (finally!) received an offer of permanent mod on the first, how do I go about settling the HELOC with BofA? I am in California, and I am due to make the first payment on the permanent mod for the first lien on June 1. Also, I completed a Ch. 7 last July, and my BK attorney had mentioned that it is possible to do a Ch. 13 after a 7 that will strip off the HELOC but we could not do that before getting a mod on the first because the payment was so high. Now that it's been adjusted, what's the better choice? Should I seek a settlement on the HELOC or remove it with my attorney? The new payment on the first is still a bit too high.

This is a truly great site, by the way!
Prior to going the route of the settlement, you may want to consult with your BK attorney on the Chapter 13 to strip the lien because you would also have to prove eligibility for the Chapter 13 ie. (you have income and are within the debt limitations) and that the lien is totally unsecured (the value of the house is less than the first mortgage debt). Proving that you are within the debt limitations required for a Chapter 13 bk could be somewhat difficult after a Chapter 7 bk discharge. It may be worth it to try that route first just to see if you would be eligible.
 

jhjordan

LoanSafe Member
Jan 23, 2011
96
1
8
As usual, Cat, this is great advice, and I will contact my BK lawyer first. Fortunately, for my situation, I think that in CA the HELOC's are completely unsecured, as my BK attorney previously mentioned, but also I have high student loans (albeit in forbearance until November) from my Ph.D. program, which, while they cannot be discharged in a BK, in tandem with the house being so underwater by 2 1/2 times its value, should work toward meeting the debt limitations! I have to say this is the first time in 5 years I've been able to relax a bit and breathe more freely without suffering the terrible anxiety of being endlessly suspended in a state of potentially losing my home! Finally, there is a light at the end of the tunnel! Thank you again for helping me clarify my thinking through this situation!
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
As usual, Cat, this is great advice, and I will contact my BK lawyer first. Fortunately, for my situation, I think that in CA the HELOC's are completely unsecured, as my BK attorney previously mentioned, but also I have high student loans (albeit in forbearance until November) from my Ph.D. program, which, while they cannot be discharged in a BK, in tandem with the house being so underwater by 2 1/2 times its value, should work toward meeting the debt limitations! I have to say this is the first time in 5 years I've been able to relax a bit and breathe more freely without suffering the terrible anxiety of being endlessly suspended in a state of potentially losing my home! Finally, there is a light at the end of the tunnel! Thank you again for helping me clarify my thinking through this situation!
I am happy that I am able to help and so glad that you are able to relax a little, you deserve it. Please let us know what the attorney advises on your scenario.
 

jhjordan

LoanSafe Member
Jan 23, 2011
96
1
8
H Cat,

I cross-posted in the thread on settling your second with an update after talking with the CA AG Attorney yesterday. Basically, he said this is an in-house modification and the only kind of modification the investor would allow. He also said that BofA cannot accept the KYHCA offer for a principal reduction because the investor does not allow it. However, I think that once the permanent mod returns to normal servicing, I may still be able to get a assistance from KYHCA to help pay down the underwater loan. Meanwhile the CA AG Attorney remains in oversight of my situation with BofA to make certain that everything with the permanent mod gets processed correctly. I am much looking forward to finally getting to truly relax this weekend after this long, hard battle with the bank. In addition, I want to say that I am happy to contribute in any way I can to the excellent work that you and the Loansafe.org site are doing! I am so grateful for the assistance I have received here, that has essentially kept me from losing hope, and has encouraged and empowered me to keep up the fight, that I want to pay it forward! I will continue to post updates, but let me know if there is anything more I can do to pay it forward!
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
H Cat,

I cross-posted in the thread on settling your second with an update after talking with the CA AG Attorney yesterday. Basically, he said this is an in-house modification and the only kind of modification the investor would allow. He also said that BofA cannot accept the KYHCA offer for a principal reduction because the investor does not allow it. However, I think that once the permanent mod returns to normal servicing, I may still be able to get a assistance from KYHCA to help pay down the underwater loan. Meanwhile the CA AG Attorney remains in oversight of my situation with BofA to make certain that everything with the permanent mod gets processed correctly. I am much looking forward to finally getting to truly relax this weekend after this long, hard battle with the bank. In addition, I want to say that I am happy to contribute in any way I can to the excellent work that you and the Loansafe.org site are doing! I am so grateful for the assistance I have received here, that has essentially kept me from losing hope, and has encouraged and empowered me to keep up the fight, that I want to pay it forward! I will continue to post updates, but let me know if there is anything more I can do to pay it forward!
Sharing your story and fight in such great detail and updating the forum as it unfolds helps other members that find themselves going through similar. I am so glad that the information and help provided on LoanSafe has been able to help you throughout the process.