Have you had success when YOU initiated a settlement?

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LoanSafe Member
Sep 23, 2013
Just wondering, because I keep reading that you must wait for "them" (in this case a debt collection agency) to want to settle with US. However, that is likely not going to happen where we live in LA because home prices in the last year have gone up over 20% in our neighborhood. Doubt we'll be getting any settlement offers at this point, hehe.

So my mom (whose house it is) wants to initiate a settlement (is intent on it, actually) for her 2nd loan, which is $204k. I believe it's still SLIGHTLY under water, but not by much. I'm just wondering if anyone has had SUCCESS initiating a settlement letter/call themselves. Thanks!! :)


LoanSafe Member
Aug 22, 2010
Just modified my first, $465,000.00 with RCS. It was an In-House, 2% for five years, then 1% for years 6 thru 7 until I reach 4.375%. I have a second with Deutsche Bank service by Ocwen ( formally GMAC) for $72,000.00 that I have not paid on since 05/2009. I only heard from Ocwen one time when they notified me of their service agreement Deutsche Bank. I live in CA and house prices are rising quickly. What are the chances of them foreclosing? I was hoping for an cancellation under the DOJ.


LoanSafe Member
Dec 21, 2010
Charlotte, NC
Hello Mrteddy,

If the figures you quoted are still accurate, there is virtually no chance of getting foreclosed on the second. The second is in a subordinate position to the first loan, meaning if Ocwen were to foreclose, they would have to pay off the first before they would see a single penny themselves. Since they would no doubt still get less than the balance on the first, they would actually lose more money foreclosing than by settling or even just writing off the second.

With home price increases starting to level off, you are most likely still in a good position. I wouldn't count on a cancellation of the second, but you are probably in a good position to reach a settlement.

Tim Trumble
Online Operations, NACA
[email protected]


LoanSafe Member
Sep 17, 2012
In my humble opinion it depends on the lender. I have a Green Tree 2nd that I did everything asked trying to initiate a settlement before it got really bad. I jumped through all their hoops and they just used all the information against me. If its GT I wouldn't consider initiating. I have come across one or two stories on Loan Safe where folks initiated the settlement process and were successful, but overall from reading this forum I don't believe that to be the case. I have also seemed to notice that if the situation is post BK chances are greater when trying to initiate a settlement. Again this is just my instinct in reading various stories on this forum so it could be completely off. Good luck.