Hi heregoesnothin!Foret - Thought it may help to tell you about my situation. I had the exact same 2nd mortgage with CitiMortgage (even 8.5% like you), for $68K. We stopped paying our 2nd 4 years ago. The 2nd was (and still is today) completely underwater. After a year of continuing to pay our 1st mortgage, we decided to walk away from the house and stopped paying the 1st as well. The home is slowly crawling through the foreclosure process, still not taken by the bank. Anyway, regarding CitiMortgage. They continue to send us statements stating the balance and that it has been "charged off." We've received a few letters from a law firm saying they've been assigned to collect the debt, but they've never done anything to collect. I'm praying they'll cancel the debt when the foreclosure finally goes through, but we probably won't get that lucky. We may eventually try to settle with them, but we're in no hurry. It does stay on my credit report and continue to badly affect my credit. So for your case, I'd say you have a ton of time and don't worry about it, unless you're in a hurry to improve your credit. Then you could continue trying to settle with them. But I'd think the longer they have to wait, the more willing they'll be to accept a lower amount. Don't answer your phone from any phone number you don't know. As others have said, it's best not to talk to them so they have as little information as possible. Good luck to you!
I recently sent a settlement offer via mail to the 1000 technology drive, O'Fallon MO address - Attn Recovery DeptHi All! There is an update on my case and I need advice again! Last week on Feb 25, I emailed a settlement offer to City. I used one of the formats I found on this forum (posted by Maurice). I offered $6K to settle the $61.5K loan. Today I received the following email from CitiMortgage:
“Your file has been noted concerning the charge off of your account and you have been instructed that, going forward, you must confer with Citimortgage’s Recovery Division at 800-395-8897 for further assistance.”
What does this mean? Is “charged off” a good thing or a bad thing? Does this mean that they can now sue me or foreclose? Any advice on what I should do? I am trying hard not to freak-out and I am anxiously waiting for feedback! Thanks in advance!
I don't have an answer, but it surely sounds disconcerting - given we know these people will lie and scheme and scam in the name of God. If that's the exact language, it does not specifically say that the lien will be released. Gotta wonder why it doesn't. Why the game-playing? I would be very uncomfortable. Perish the thought of handing over $10k for nothing.OMG I think I might have a success story! Could it be?!
For some reason, my case at Alliance One was transferred to a gentleman. He was so much nicer and polite, although he kept pushing for %25. We spoke a couple of times and I remained adamant each time that I will not provide financial docs and that I am not in any hurry so they might as well leave me alone. He called me this morning to tell me that Citi has agreed to settle for $10K: without any financials from me! I know that I could probably hold on longer and get a better offer, but I really want to get this behind me and move on. I just got the letter by email and reviewed. I am worried because this specific part is very vague:
"Upon receipt and clearance of all funds, we will notify our client that you have satisfied your account. Our client, Citibank, will be responsible to release its lien associated with this property and waive the deficiency balance on the above listed account".
There is nothing in the letter guarantying that the lien will be released and nothing about about what will happen to my credit. I called back Alliance and was told that this is their standard letter (advised/approved by their attorneys) and they cannot change it nor put in the specific terms and conditions I am asking for. Next I called Citi directly and got confirmation about the settlement agreement. However Citi is telling me that they cannot give me a letter either because everything is being handled by Alliance One. So I am very worried about paying the money, and then finding out later that Citi can: #1-still come after me, #2 refuse to release the lien, #3 refuse to forgive the remaining debts and/or #4 refuse to report "settled in full" to the credit agency.
Does anybody know if this is standard? Did anybody face this situation and was able to convince them to change the letter? I am so worried that this could be a scam and that they might be fooling me just to get the money and then end up having Citi coming after me in the future or having to fight for the lien.
Thanks in advance for any advice and guidance anyone can provide! I am truly grateful for all the incredible help!
Thanks Patzz for the quick response! Yes that is exactly what I am worried about :-(...As much as I want to put this behind me, I do not want to fall into a trap.I don't have an answer, but it surely sounds disconcerting - given we know these people will lie and scheme and scam in the name of God. If that's the exact language, it does not specifically say that the lien will be released. Gotta wonder why it doesn't. Why the game-playing? I would be very uncomfortable. Perish the thought of handing over $10k for nothing.
Call Citi again. Ask them if the details from Alliance are all correct, be polite. Then ask them if Citi will be forgiving the remainder, or how that amount will be handled. Then ask them approximately how long it will take for the lien to be released. THEN, ask the Rep if they could please get all the information you've just discussed, sent to you in an email, as you would like to get this money sent out right away, but are a bit concerned about doing so without some reassurance. We've had some success with this route. Offer to send them an email first, so they can easily respond. It's worth a shot.
They may not report the debt as Settled in Full, they did not with our two Helocs. They were reported as Settled for less than full amount. But they were settled, and we were able to sell one of the properties. Still have the other. We did receive 1099s on the forgiven portions, and had to pay taxes on those amounts.
Sounds like you've got it. I would request a copy of the recorded release, from the County Recorder, and pay the small fee if there is one, just to have that copy in my hands.Hi All...Just wanted to share with you the latest on my case...After a LOOOOOT of back and forth with Citi and Alliance, we finally decided to go with it praying for the best. So we did send the payment and have been waiting anxiously since then for what would happen next.
I followed up with the county a couple of times and finally got an email saying that "CitiMortgage has filed the Release to Land Recording at Judicial Center on 07/07/2016". Also on my credit, I see the following "Payment Status: Collection/Charge-Off" and "Remarks: Payment after charge off/collection. Settled - less than full balance"
Can I finally jump up and down with happiness? Is this success? Or quite the opposite?????
Moe, Need your help...You are welcome Foret!
Your success is everyone's payback. Thanks for the kind words and we all wish you the best!