Sls Second Loan

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david925

LoanSafe Member
Feb 5, 2016
9
1
3
44
Guys,

This forum has been wonderful source of information with all the helping hands you can use especially the founders and other senior members.

Now coming to my situation,I had a second mortgage with BOA.I havent been paying on the second from Nov 2012.BOA transferred the loan to SLS in 2014.
I never communicated with SLS and kept on ignoring the calls and mails.Balance is around 120K.One month back SLS sent offer for 60K and renewed monthly payments.

The SLS loan amount is currently not appearing in any of my credit reports when I use credit karma,truecredit or fico.

So please let me know my best plan of action.

My house is located in California.House is kind of under water with around 80K.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,854
467
1,000
49
Southern California
www.loansafe.org
Hello,

The plan of action all depends on what your goals are. If you plan to stay long term, and do not have a whole lot of cash to settle in full, then it may be best to settle in partial and make payments long term. If you have a good lump sum to settle and are willing, then this is a great time to start negotiating a settlement in full.

What are your plans and how is your cash situation?
 

david925

LoanSafe Member
Feb 5, 2016
9
1
3
44
Hello,

The plan of action all depends on what your goals are. If you plan to stay long term, and do not have a whole lot of cash to settle in full, then it may be best to settle in partial and make payments long term. If you have a good lump sum to settle and are willing, then this is a great time to start negotiating a settlement in full.

What are your plans and how is your cash situation?
>>
Thanks Moe for your reply.
I want to stay in the house long term.

In all honesty I can afford to settle it upto 15-20%.
So should I communicate and send them a counter offer through mail?
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,854
467
1,000
49
Southern California
www.loansafe.org
You are welcome. Most people negotiate over the phone verbally until an agreement is made. Once a deal is reached, they will send you the paperwork with the terms which are usually a one sheet paper.

I would start low at say 3% and go up from there. Many people here on LoanSafe have settled in the 5-20% range. So if you can settle lower than you are willing to go, then more cash for you and your family.
 
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david925

LoanSafe Member
Feb 5, 2016
9
1
3
44
You are welcome. Most people negotiate over the phone verbally until an agreement is made. Once a deal is reached, they will send you the paperwork with the terms which are usually a one sheet paper.

I would start low at say 3% and go up from there. Many people here on LoanSafe have settled in the 5-20% range. So if you can settle lower than you are willing to go, then more cash for you and your family.
>>Thanks for your advice Moe.
I will definitely try the route suggested by you.
I will keep you updated regarding how it goes.
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,854
467
1,000
49
Southern California
www.loansafe.org
My pleasure and sounds great. I wish you the best of luck with all this!
 

mickandvick

LoanSafe Member
Apr 18, 2012
62
4
8
David, I also live in CA and have a second mortgage with SLS. The loan I have with them is 150k and is completely underwater. They have called numerous times since 2012 and I have followed the strategy on this site for settling second. The individual I have talked to is requesting financials before they will even entertain a settlement. I have refused to send them. Did they require financials from you before they offered you a settlement offer? The 4 yr statute is 6 months away. I am not sure the statute of limitations works to my advantage. Any advice or your experience with negotiating would be greatly appreciated.
 
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driftwood

LoanSafe Member
Sep 17, 2012
315
38
28
I am not sure what SOL you are referring to but I don't believe in your situation the clock has started. Besides as long as the lien is still in place on the home the lienholder can always take action on the property at least in CA they can.
 
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mickandvick

LoanSafe Member
Apr 18, 2012
62
4
8
I am not sure what SOL you are referring to but I don't believe in your situation the clock has started. Besides as long as the lien is still in place on the home the lienholder can always take action on the property at least in CA they can.
It is my understanding that the SOL is 4 years after which they can't take legal action to collect such as wage garnishments or continually call you to collect. The debt doesn't go away but with my house being so upside down would never forclose. Am I incorrect with the SOL information?
 

mickandvick

LoanSafe Member
Apr 18, 2012
62
4
8
It is my understanding that the SOL is 4 years after which they can't take legal action to collect such as wage garnishments or continually call you to collect. The debt doesn't go away but with my house being so upside down would never forclose. Am I incorrect with the SOL information?
SLS continually calls but refuses to offer any settlement without financials which I am unwilling to submit. Do you think they will eventually make me a settlement offer without the financials?
 

david925

LoanSafe Member
Feb 5, 2016
9
1
3
44
Mick,
So far I Communicated with them through email,but they never replied/responded.
So I am still waiting for any sort of communication.
I havent paid from Nov 2012 as well.

They have been trying to call me but we never pick up.
So thats the current status.
 

driftwood

LoanSafe Member
Sep 17, 2012
315
38
28
As far as the SOL in CA, the clock doesn't start until the 2nd becomes a SOJL. And that would only happen if the 1st completes a FC. In CA as long as a lien exists against the property there really isn't any SOL that would apply. The lienholder can action that lien regardless of the age.
 

frustratedincali

LoanSafe Member
Jan 24, 2015
68
3
8
David 925 I am also in CA and have a second (purchase money) with SLS. I'm wondering if you were able to settle your loan. My husband and I haven't paid our second loan in a year and a half and it is now about 100,000 with the added interest. We are current on the first. I would really like to settle at this point and be able to sell & move eventually. Originally we were very upside down, but the market has changed and the value is about equal to what we own total on both loans (and climbing). We got an offer at the end of last year for around 50%, but didn't have 50k to settle. I tried e-mailing a settlement offer, but got no response. We could afford to settle for 10% cash, but I haven't heard too many stories of SLS settling for that. My husband and I are not too confident in our negotiating skills and are wondering if we would be better off having a lawyer help us to make sure they release the lien etc. If anyone knows of any other options I would curious about those as well.
 

david925

LoanSafe Member
Feb 5, 2016
9
1
3
44
Frustrated unfortunately I couldn't settle yet.
I recently got an appraisal done on my home and as of now I have 120k on my second and they are asking 95K based on first mortgage payoff and property appraisal document I submitted.
To clarify:
Home Appraised for 389K
1st Mort payoff:294K
2nd Mortgage:125K

SLS is trying to settle for 95K based on my offer of 9K.

Can experts who settled for 20% to 40% advise on how I should negotiate in my case?
Tom,Moe, Rillon, and others please pitch in how to better negotitate.
 

bigfrog

LoanSafe Member
Aug 31, 2011
359
44
28
55
This is bad time to do appraisal for settling. It is a good time to sell or refi. The banks aim for that appraisal number. Lo and behold.. 295+95 = 390. They know the market is good and will not budge. All should be all obvious by now. Your best bet is to ride it out until the house market crash, unless you are scared.. They can smell the weaks miles away.
 

david925

LoanSafe Member
Feb 5, 2016
9
1
3
44
Exactly looks like that case of scenario BigFrog.
I don't think anything can happen or will happen.