SLS 2nd Lien

RudyM

LoanSafe Member
Aug 17, 2012
19
2
3
Hello, I had a chapter 7 bankruptcy discharged in 2010. Now the 2nd is trying to have me do a short sale or foreclose and mailed me a notice of intent of default and intent to foreclose if I don't respond by 01/27/2020 with a listing of short sale. I know that I owe about $515,000 on the first which is current and the 2nd payoff is $177,000 delinquent for about 10yrs. Home value is about $601,000 approximately and I am in CA.

In my conversation with 2nd they asked me what the payoff was on the first and I told them I didn't know. I have not given them a decision on anything. Unfortunately, I am not able to refi since the LTV is too high and no equity in the home.

The 2nd will have to pay off the first, but is it really worth it for them to do this? They will get some money but I am not sure if they are trying to pull one on me and just get me to do a short sale. I am thinking of wading it out and see what they do. Any advice would be appreciated.
Thank you!
 

bigfrog

LoanSafe Member
Aug 31, 2011
359
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Hello RudyM.. Well, I am in a similar situation with SLS as the servicer without a BK. Over the last 8 years until now, I have been trying to get them to Foreclose. I literally was begging them to Foreclose. I was talking to them last month, they said I have over $250k in equity, and wanted to know what is my plan. Told them to go ahead with the foreclosure, because they will never see another penny from me. They responded that they are in no position to foreclose, and will never foreclose. I asked them, "then why bother calling me, because I will give the same answer, that I am not paying?" They said that they will constantly calling me until I pay. Told them I will be setting my phones to ignore calls coming from them.

I told them, "I thought you guys had more power and are able to foreclose! With $250k in equity, what are you guys scared of? Just tell the investors that they are welcome to foreclose, and that I am all packed up. Ready to move out of State. CA is becoming too expensive to live. And hurry up with the foreclosure, before the equity collapse." The reps were upset, and said that they are going to document all of what I had said, and that our conversation is over, then hung-up. I am not sure what important that has, over a foreclosure.

So, RudyM, they believe I have $250k in equity and they wouldn't foreclose. I don't see why in the world they would foreclose on you? My house is valued over $700k for some freaky reason. And because of that inflated value, everything went up along with it, taxes, insurances... Yah, its inflated, I wouldn't pay $700k for it. Not sure where that freaking number comes. If I wasn't in this situation, I would stage it and sell, move out of State in a heart beat. But I believe a realistic situation would cost me an additional $20k to break even. These dumbAs, are just bsing, and trying to get people make payments.
 

RudyM

LoanSafe Member
Aug 17, 2012
19
2
3
Hello RudyM.. Well, I am in a similar situation with SLS as the servicer without a BK. Over the last 8 years until now, I have been trying to get them to Foreclose. I literally was begging them to Foreclose. I was talking to them last month, they said I have over $250k in equity, and wanted to know what is my plan. Told them to go ahead with the foreclosure, because they will never see another penny from me. They responded that they are in no position to foreclose, and will never foreclose. I asked them, "then why bother calling me, because I will give the same answer, that I am not paying?" They said that they will constantly calling me until I pay. Told them I will be setting my phones to ignore calls coming from them.

I told them, "I thought you guys had more power and are able to foreclose! With $250k in equity, what are you guys scared of? Just tell the investors that they are welcome to foreclose, and that I am all packed up. Ready to move out of State. CA is becoming too expensive to live. And hurry up with the foreclosure, before the equity collapse." The reps were upset, and said that they are going to document all of what I had said, and that our conversation is over, then hung-up. I am not sure what important that has, over a foreclosure.

So, RudyM, they believe I have $250k in equity and they wouldn't foreclose. I don't see why in the world they would foreclose on you? My house is valued over $700k for some freaky reason. And because of that inflated value, everything went up along with it, taxes, insurances... Yah, its inflated, I wouldn't pay $700k for it. Not sure where that freaking number comes. If I wasn't in this situation, I would stage it and sell, move out of State in a heart beat. But I believe a realistic situation would cost me an additional $20k to break even. These dumbAs, are just bsing, and trying to get people make payments.
Appreciate the info bigfrog! SLS is so inept and the reps don't know what they are doing. Even my POC Arturo sounds unsure of the process and I get the run around. I know they just want me to do a SS and trying to pressure me, but not sure I will be doing that. I have asked for a reconsideration on loan mod in writing but they probably won't consider that until they notice I have not moved forward on SS. I am meeting with a real estate agent on Saturday to discuss possible SS but I wont be signing anything I just want to hear what they have to say and if they have dealt with SLS.
Part of me just wants to move forward and sell since I personally have no equity on the home and I will never actually own it. The other part of me just wants to wade it out and see if they really pursue foreclosure. They need to pay off the first and do legwork if they decide to foreclose which I am starting to doubt they will pursue.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,100
181
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San Diego, California
www.loansreduced.com
To update this thread because I've been dealing with SLS quite often, actually just paid off 2 of their old charged off liens last week and a number of older ones as well.

What SLS is trying to do is get clients to modify the loan with them to start making payments. In most cases those modification agreements haven't been beneficial and once you accept the mod of course you're validating the debt.

I can for sure say that depending on the state that you're living in, they are taking action. I had a borrower here in California literally about to get foreclosed on (Sale date issued) and he found our forum by doing all the research and we ended up getting him into a program that allowed us to refinance and pay these thieves (SLS) off even with a pending foreclosure. We did that right before the sale date, saved his house and he has now 1 lien (ours) on his home.

I've only had one borrower successfully be able to negotiate a lower balance with SLS and it only resulted in about 6K less than the original payoff. Original payoff was 74,000.00 and he was able to negotiate them down to 68,000.00. I'm currently in process of refinancing to pay them off. This is of course recent stats because of the home value gains across the country.

I don't believe that SLS deserves to get paid a huge amount above what was originally owed, I think they're crooks. However I also don't want to see anyone lose their home over this. If you are in a position where SLS is threatening foreclosure you have a couple options, one of them being what BigFrog has done which is say "I dare you" - the other option is to take the modification agreement and of course refinance into a new loan to satisfy them via a cash out refinance. Interest rates are pretty darn good right now so it wouldn't be a bad idea to take advantage of it. Ultimately the balance is going to continue to grow with SLS and whenever you decide to sell or refinance (or get foreclosed) you will still have to pay the lien off.

If you have any questions regarding satisfying SLS, Real Time Resolutions or whoever it may be holding the 2nd lien... please call me, I'm very well versed with this and know exactly what the underwriting requirements are. [email protected] or 619-379-8999.
 

bigfrog

LoanSafe Member
Aug 31, 2011
359
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I wasn't daring them. I was begging them.. asking them pretty please!!! I am in California. Erik Sandstorm, if you have contact with them... Please ask them to foreclose on me. I would be celebrating if it happens. To me they aren't thieves, just a bunch of incompetent chicken.

Again, I haven't see them foreclose on anyone as a second. The situation you are describing sounded like they are representing the first. But the amount sounds like they are the second, meaning it cant be just 74k. If they are the second, then they had paid out the first already, which mean the price to settle has to be even more. The situation you are describing can't be in CA.. Unless it is just LAND only.. Don't waste your time fooling us.
 

OneHugeMess

LoanSafe Member
May 30, 2016
568
50
28
Hello RudyM.. Well, I am in a similar situation with SLS as the servicer without a BK. Over the last 8 years until now, I have been trying to get them to Foreclose. I literally was begging them to Foreclose. I was talking to them last month, they said I have over $250k in equity, and wanted to know what is my plan. Told them to go ahead with the foreclosure, because they will never see another penny from me. They responded that they are in no position to foreclose, and will never foreclose. I asked them, "then why bother calling me, because I will give the same answer, that I am not paying?" They said that they will constantly calling me until I pay. Told them I will be setting my phones to ignore calls coming from them.
Bigfrog, you can send a cease & desist letter to them, and they will be required under Federal Law to stop calling.

 

bigfrog

LoanSafe Member
Aug 31, 2011
359
44
28
55
The thing is I want them to call me. Its great.. I like trashing them around. Stress reliever. You guys should try it. They get do much except hang-up. C&D is for the ladies..
 

bigfrog

LoanSafe Member
Aug 31, 2011
359
44
28
55
I am waiting for them to foreclose.. I will know if they start foreclosing, when the first close my account, pretty much stop accepting payment from me.