Settlement on SLS 2nd

Wrldruler

LoanSafe Member
I went Ch7 BK in 2014.
I continued to pay my first mortgage and I am current.
I haven't paid SLS a dime on my 2nd since my BK

After 6 years, out of the blue, SLS sends me a foreclosure notice and wants $23K to get current.

First: $190k
Second: $45K ($23k past due)

I called SLS and lady said my house was worth $210k. That could be close. May be too high. She said I can hire an appraiser to get my own appraisal, and for $150 they would "reconcile" my appraisal. Is it worth me paying for my own appraisal? Would they accept a lower value? If I let them go to foreclosure, would they be forced to pay for a new appraisal anyway?

They also said I owed $150k on my first. This is not accurate. I owe $190k. They told me how to get a payoff quote and they will update their systems. So I am good there.

So they think I have $60K equity. I actually have between $-10k and +$20k. I wonder if they will be eager to foreclose once their computers are updated. Anybody know how much equity it takes for a 1st mortgage to block a sale?

I asked about settlement and they said the settlement amount would be 100% of the equity in the home. So if I have $20k in equity, they want a check for $20k. Is this normal? I had not read that on this forum.

What is a realistic target settlement if I have $20K equity on a $45k loan?

Thanks
 

Jzone

LoanSafe Member
First thing to do is confirm that both your first and second mortgages were included in Chapter 7 bankruptcy. Also confirm that neither mortgage was reaffirmed.

Then find out your state specific laws on foreclosures. Your bankruptcy lawyer could be of great help here. In most states, but not all, a second mortgage can only foreclose if they also pay off the first mortgage. That is unlikely if you stay current on the first.

After bankruptcy, there is a legal difference between attempting to collect a debt and attempting to enforce a lien. If your mortgage was discharged in bankruptcy, they can still foreclose since they hold the lien to the property.
I am in similiar situation in Michigan, so can only tell you what my state allows.

I wouldnt worry too much about SLS foreclosing at this point. Offer them a 10% settlement and wait for a response. Dont get an appraisal and dont provide any financial info to them.
 

Wrldruler

LoanSafe Member
I wouldnt worry too much about SLS foreclosing at this point. Offer them a 10% settlement and wait for a response. Dont get an appraisal and dont provide any financial info to them.
Is it best to offer a settlement via phone or mail?

I tried via email (because someone on this forum had success like that) and they just replied "we don't negotiate via this channel".

Appreciate the replies.
 

Chasegame2

LoanSafe Member
Do both, and in your email state that it is being sent to 'memorialize your phone conversation with NAME/TITLE on DATE/TIME' . Ask them to respond immediately if they have any issue with your email. If they call you to discuss/dispute it, do the exact same thing again-send them an email 'to memorialize the phone conversation'.
 

just_me

LoanSafe Member
Also...It's really easy to download a call recorder app to your cell phone. (Use that phone for the call. Don't plan on being able to easily obtain the banks recorded calls of the conversation.) Make them state their name and authority to start for your notes. I use this (automatic call recorder app) all the time for my personal note taking. It's legal to record here and most of these contacts are met with a "you are being recorded for quality and training purposes" so there is already an announcement of the fact on the call "recording" anyway. But sure, you can announce it if you want but may not need too. (You can google the law on your State if you want to.) Sometimes I say, "I'm recording this" and get an immediate attitude change.

I would not volunteer information (financials, etc) that they do not have or correct their potential foreclosure case in advance. The part about merging different reports appears to be a bit of hogwash. Don't help them quash your dispute where you have a legitimate dispute.
 
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