Followed The Strategy And It Worked! 2nd Mortgage

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carrieross

LoanSafe Member
Feb 27, 2013
14
4
3
Hello,

Well, after 2 1/2 years, I finally have a success story to post. When I found Tom Eason strategy for settling seconds, I'll admit I was sceptical and thought it was too risky. However, I looked at our situation and it really seemed to fit with the strategy. We dove into this in October 2012 and stopped making payments, but didn't find the strategy until several months later. We had a first and second mortgage that went from Dollar, to IndyMac to OneWest (OWB) and finally to Ocwen. Here are the details:

Located in San Diego, CA. Bought house in March 2007. Tried refinancing and then short sale but was too underwater (and still is)

1st - $324K
2nd - $81K ($76K since we had paid $5000 on principal prior)

Current value: According to FMV on 1099 $305K.

Stopped paying in October 2012 after trying to refinance and short sale, but they gave us the runaround.

Long story short... we tried sending OWB financial hardship info and they dragged it out and refused to take our offer of $5000. Shortly after that, with all the bs, we decided to stick to the strategy and quit all communication. Got harassed for a while, got another debt collector company to try to collect, got various form letters and then nothing.... fast forward, servicing rights sold to Ocwen (my new favourite company). Repeat harassment, letters, calls and then nothing.... for another year.

Then in February this year, we got a 1099C for the entire amount of the 2nd! They had discharged the debt back in November of 2014 and had it reported on our credit as paid/zero balance. We had received nothing from them and our tax person said we needed to have the back up documents to file our income taxes. With that, I researched and found out that there are statutory obligations both state and federal to releasing liens upon satisfaction of debt. Sent registered letter to Ocwen and requested lien release be processed.

At the same time, I found the loansafe thread on Ocwen lawsuit and settlement agreement with several states, including California and found that one of their compliance issues was not releasing lien in timely manner, or informing people of the tax implications of the discharged debt. So.... following more great advice on this forum, I filed a complaint with the Consumer Financial Protection Bureau on this. Within two weeks of filing this complaint, we received a response and they sent the reconveyence of lien to our County last week!

What I think I learned the most from this process is to be patient and to trust what you know to be right. It is a little scary with all the conflicting information out there and really there is not any "expert" to consult. I learned so much from reading about others going through this process and applying knowledge to our situation. Most of all, the group support was so important and I am truly grateful.

Tom and Moe..... your wisdom and encouragement are a like a lighthouse in the fog.

Carry on!!!
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,854
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Southern California
www.loansafe.org
Wow, what a great story and testimonial carrieross.

We really appreciate not only the sharing of your story here on LoanSafe, but also your participation in the community and kind words.

It is people like you who share their stories online with others that helps everyone along the confusing and intimidating process. Stories that assist countless other who do not tell their stories, but learn and save their homes with stories such as yours.

For that, thank you carrieross!

I wish the best on the next stage of your journey in life, and most of all, peace...
 
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Boise_Guy

LoanSafe Member
Oct 15, 2012
5
1
1
Over the past four years I have read through the forums trying to find a glimmer of hope for our situation. Finally, I can post our success story.

1st: $151,000

2nd: $72,000

Value $222,100

Stopped paying in March of 2012

In 2011 our BofA HELOC payments almost tripled after the 'interest only' period ended. Like many other BofA customers we tried to be proactive and work with BofA to try to work on an affordable payment. After a year of countless account reps, sending in docs (3x) and frustrating phone calls we took the advice and leap of faith of stopping payment and communication with BofA in the early spring of 2012. We did however keep current on our first mortgage and have never been late or missed a payment. In early 2014 our county tax assessment came in and it was a $20,000 jump from the year prior. We thought foreclose was almost inevitable. Fast forward to January 2015 and our 'golden ticket' had arrived, HELOC forgiveness of over $70k. Though we are on our way, we are not out of the woods yet. Yes the account is showing closed and the credit reports are now, as of today, Closed-Paid (but in the Remarks still show 'Paid Charge Off'). The last step we are waiting for is the release of the lien. Once we get that a huge sigh of relief and joy!
The recommendations here work! Be patient and diligent!
 
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mimo11

LoanSafe Member
Apr 21, 2010
8
2
1
Awesome! I got the same thing for my 2nd, I wrote to the lender HSBC to ask them to release the lien and I got the full reconveyance of the 2nd last week!

I got it in Jan too but I thought they were taking too long to release it. :)

Good Luck hope you get the release soon!
 
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loansuccess

LoanSafe Member
Aug 7, 2013
42
2
6
Awesome! I got the same thing for my 2nd, I wrote to the lender HSBC to ask them to release the lien and I got the full reconveyance of the 2nd last week!

I got it in Jan too but I thought they were taking too long to release it. :)

Good Luck hope you get the release soon!

Patience and faith is the key. I stopped paying my second in 2009 and filed bankruptcy (chapter 7) in 2010. My second mortgage (HSBC) was discharged($57.9k) and I never heard anything else from them since that time. After reading one of the previous post, I decided to take a chance and call them (800)586-6668. I basically inquired about why I hadn't received a 1099-C and subsequent lien release. It took the rep a few minutes to find my loan - once she found it, she told me that it was charged off in 2010. She then transferred me to the bankruptcy department and they put in the request for the legal department to prepare the lien release. I was told that the process takes between 45 and 60 days. I called back yesterday to ensure that the request was completed and was assured that it was being processed. The reality is they cannot come after a consumer since it was discharged, and its already been charged off. Thus, the only thing left for them to do is release the lien. The bankruptcy rep reiterated to me that they would send the release, because they were not going to accept any payments on the loan.

So, to all those still wondering if Tom's strategy works - it does!!!