Success in Settling 2nds-cont'd

[antomax03]

Pardon me, Chase . That “settling” 10 cents - like $9k from $92k balance may no longer work now. Banks check Zillow and voila - the current market value will show. Now, we need to be in offensive. .

1) As some of long contributors here, we need to question validity or accuracy of their demand. One approach is to ask for QWR per MT or OHM Requested 4 mos ago. Up to now no response.

2) KEEP and SAVE your money in liquid funds. . We’re in Pandemic. All foreclosures are suspended till Aug. or Sept. Read Bagels, & other forum and Learn. Watch out for next stimulus—. Heroes Act. 2020 Assistance for Homeowners. .

3). Be ready for your documents just in case you need it for class action lawsuit or just be ready. It will be tough ride but you’re NOT ALONE. This is what I think. Maybe those who went thru this w/ 2nd w/ RTR last year or so, can share? Thanks.

Yes. Banks are no longer accepting the 10 cents settling anymore. I have offered SLS 10% of the outstanding balance on my second delinquent loan and they have turned it down twice. They are demanding the equity available amount to settle.
Back in 2008 - 2014, the 10 cents on the dollar used to work. I had an offer from BOA in 2014 to settle the same delinquent loan for 5% of the balance owed to release the lien. Unfortunately I did not have any money back then to settle with them.
Now, I'm struggling to get SLS to accept a reasonable offer.

1st Mortgage is $293,000
2nd is originally $79,000, with all the fees and interest it is now $161,000.
House value according to Zillow: $385,000.

 

[Chasegame two]

Yes. Banks are no longer accepting the 10 cents settling anymore. I have offered SLS 10% of the outstanding balance on my second delinquent loan and they have turned it down twice. They are demanding the equity available amount to settle.
Back in 2008 - 2014, the 10 cents on the dollar used to work. I had an offer from BOA in 2014 to settle the same delinquent loan for 5% of the balance owed to release the lien. Unfortunately I did not have any money back then to settle with them.
Now, I'm struggling to get SLS to accept a reasonable offer.

1st Mortgage is $293,000
2nd is originally $79,000, with all the fees and interest it is now $161,000.
House value according to Zillow: $385,000.

Just remember that its not just the amount you offer to settle, but the way you offer it.

If you have regular and repeated communication with the lender, they sense you are eager to settle. This is not good under current economic conditions and they will play hardball.

Think about what would happen if you wanted to negotiate a lower price on a car purchase at the dealership. If you keep showing up at the dealership and making offers, what signal does that send?

 

[antomax03]

Just remember that its not just the amount you offer to settle, but the way you offer it.

If you have regular and repeated communication with the lender, they sense you are eager to settle. This is not good under current economic conditions and they will play hardball.

Think about what would happen if you wanted to negotiate a lower price on a car purchase at the dealership. If you keep showing up at the dealership and making offers, what signal does that send?

True. I was very eager to settle with them and they have sensed that and played hardball with me.
I stopped all communication with them since.

 

[Chasegame two]

True. I was very eager to settle with them and they have sensed that and played hardball with me.
I stopped all communication with them since.

So maybe now wait 6 months or so and offer them less (in writing), stating conditions for you have worsened. Then close your file and put it away.

I recall getting to the point of frustration and remembering the suggestion to go silent. I went silent for I think about 3 years, and Chase ended up releasing in full.

 

[antomax03]

So maybe now wait 6 months or so and offer them less (in writing), stating conditions for you have worsened. Then close your file and put it away.

I recall getting to the point of frustration and remembering the suggestion to go silent. I went silent for I think about 3 years, and Chase ended up releasing in full.

Thanks Chase. I will follow your advice.

 

[cookiemom]

Yes. Banks are no longer accepting the 10 cents settling anymore. I have offered SLS 10% of the outstanding balance on my second delinquent loan and they have turned it down twice. They are demanding the equity available amount to settle.
Back in 2008 - 2014, the 10 cents on the dollar used to work. I had an offer from BOA in 2014 to settle the same delinquent loan for 5% of the balance owed to release the lien. Unfortunately I did not have any money back then to settle with them.
Now, I'm struggling to get SLS to accept a reasonable offer.

1st Mortgage is $293,000
2nd is originally $79,000, with all the fees and interest it is now $161,000.
House value according to Zillow: $385,000.

Have you filed BK7? I thought I read one this site they cannot charge interest and fees on the 2nd since you are "debt free" and they cannot charge accumulated interest on a lien.

 

[antomax03]

Have you filed BK7? I thought I read one this site they cannot charge interest and fees on the 2nd since you are "debt free" and they cannot charge accumulated interest on a lien.

I did not file for bankruptcy.

 

[anonymous9876]

I thought I read one this site they cannot charge interest and fees on the 2nd since you are "debt free" and they cannot charge accumulated interest on a lien.

In the context of a Chapter 7, while the debt is subject to the Discharge, the lien is not. The lien is based upon the terms of the contract and, if that contract provides for interest, late fees, attorney's fees etc., those fees should be part of a payoff quote if and when one seeks to obtain the release of the lien say, upon sale or an attempt to refinance.

 

[cookiemom]

In the context of a Chapter 7, while the debt is subject to the Discharge, the lien is not. The lien is based upon the terms of the contract and, if that contract provides for interest, late fees, attorney's fees etc., those fees should be part of a payoff quote if and when one seeks to obtain the release of the lien say, upon sale or an attempt to refinance.

Thanks, good to know. I will have to look at mine, as the letter they just sent me now references the original note and that value, not the total show on the monthly statement they send me monthly.

 

[cookiemom]

So RTR responded to my settlement to release lien with a loss mitigation application...I should ignore correct and continue to send my letter? I discovered they are just servicing the link for bank of new york mellon so I am going to send them my request to release lien.

 

[missy22]

I would suggest scrolling up a bit on this thread to my Aug 21, 2019 post. Then, insert your own numbers in place of those in that post. (this is similar to Tom Eason's Strategy herein). Doing some quick math in my head says your 2nd with RTR is WAY underwater and they have zero incentive to foreclose and probably won't. To me, that letter from them with 'options' is just a Hail Mary.

I would send them a certified letter and state 'on day/month/year' you offered me $9000 to settle this as payment in full. (the technique here is to try to memorialize in writing that offer of $9k). Then say you can't come up with $9k but can offer $x for a full release. Ask that they respond in writing.

I've contacting RTR, following steps on here to see if they'd release the lien since debt was in chapter 7. A mitigation application was sent back...which I ignored. Now just received notice that lien is being transferred to specialized loan services (RTR held this for 11 yrs).

Is this good? Bad? Do I start again sending a settlement offer?

I seriously just want this off my worry plate!

 

[Jzone]

I've contacting RTR, following steps on here to see if they'd release the lien since debt was in chapter 7. A mitigation application was sent back...which I ignored. Now just received notice that lien is being transferred to specialized loan services (RTR held this for 11 yrs).

Is this good? Bad? Do I start again sending a settlement offer?

I seriously just want this off my worry plate!

Probably not good or bad. I would wait and see what your first communication is with SLS. Also, verify with your county clerks office that the lien has been transferred. Usually, it is best to keep communication to a minimum and always in writing. If the lien has just been transferred, it may be a good time to negotiate a settlement offer with the new company.

 

[missy22]

In the context of a Chapter 7, while the debt is subject to the Discharge, the lien is not. The lien is based upon the terms of the contract and, if that contract provides for interest, late fees, attorney's fees etc., those fees should be part of a payoff quote if and when one seeks to obtain the release of the lien say, upon sale or an attempt to refinance.

So to this point...if RTR sold the loan...does the interest etc transfer over or does the new owners of lien take it as the original $42k?

 

[Erik Sandstrom]

So to this point...if RTR sold the loan...does the interest etc transfer over or does the new owners of lien take it as the original $42k?

Yes, if there is interest gained it will continue with the new servicer. A servicer is just an entity assigned to manage the loan/collect payment/initiate foreclosure proceedings or send them to their law firm that does.

 

[JohnFL]

This is so screwed. Basically the banks and investors are being rewarded for screwing over the American people. I know and understand I signed a contract to pay the loan. But unfortunately I was taken advantage of due to my lack of knowledge and wanting a home for my family. So I have a 2nd which was for 72k when I quit paying due to medical and income issues. Now, according to recent settlements, they will want 198k due to interest and fees when they have made no effort to contact me to settle or to even foreclose in over 10 years. This is really screwed. I can imagine all these service companies just waiting for the foreclosure moratorium to end in September. Especially after the recent home prices have risen so dramatically. The little guy can't win. They got billions in bailout money from taxpayers and now they will screw those taxpayers for billions more. Something is seriously wrong here, just saying. I'm not a lawyer or someone who plays one on TV. Hope everyone has a great day!!

 

[Erik Sandstrom]

I completely agree with you John and you sound like one of the many (I was about to saw few, and corrected my statement) that have a really high interest rate where the interest keeps growing every single month. I firmly believe these investors changed hands a few times and notes were bought for pennies on the dollar and now they're raking in the profits by foreclosing on homes, putting borrowers into repayment or collecting a large settlement offer.

Most people got a loan mod on their 1st lien back in 2008-2010 and were promised that the 2nd lien would modify through a program called 2MP, unfortunately that didn't prevail for many and most were left with charged off status unknowing what that could mean for the future. Feel free to keep my information handy in case you run across any questions or have someone messing around, I'm happy to jump in as an expert.

 

[Ktfrans]

This is so screwed. Basically the banks and investors are being rewarded for screwing over the American people. I know and understand I signed a contract to pay the loan. But unfortunately I was taken advantage of due to my lack of knowledge and wanting a home for my family. So I have a 2nd which was for 72k when I quit paying due to medical and income issues. Now, according to recent settlements, they will want 198k due to interest and fees when they have made no effort to contact me to settle or to even foreclose in over 10 years. This is really screwed. I can imagine all these service companies just waiting for the foreclosure moratorium to end in September. Especially after the recent home prices have risen so dramatically. The little guy can't win. They got billions in bailout money from taxpayers and now they will screw those taxpayers for billions more. Something is seriously wrong here, just saying. I'm not a lawyer or someone who plays one on TV. Hope everyone has a great day!!

I’m one of those little guys. Same basic situation but it was my Moms 1st and 2nd mortgage, subsequent bankruptcy discharge of all debts and none payment of 2nd over 12 years. She has since passed and I inherited the home she and I shared and am trying (not well) to deal with the 2nd mortgage coming back with vengeance. The 2nd mortgage laid in wait for years, knowing someday there would be equity and waited for the perfect time to pounce. It’s a damn shame it really really is.

 

[missy22]

Yes, if there is interest gained it will continue with the new servicer. A servicer is just an entity assigned to manage the loan/collect payment/initiate foreclosure proceedings or send them to their law firm that does.

Even if was part of chapter 7?

 

[JohnFL]

So I was finally able to find out who owns my second. I have 2 loans from 2005. 1st for 290k which was bought by Douche in 2009 and modified. In 2009 I quit paying 2nd and never heard a peep from anyone. Fast forward to today. I have not payed on 2nd since 2009 which was for 73k. After finally finding someone to help me at Douche I find out they are the 'trustee' of the note on both 1st and 2nd. The person at Douche told me they withdrew the files from the vault with 2nd going to US Bank Corp Trust in 2005 and 1st to Ocwen in 2020. They told me they cannot help me with the 2nd. Is this true? Can I negotiate directly with Douche on the 2nd?

 

[Jzone]

So I was finally able to find out who owns my second. I have 2 loans from 2005. 1st for 290k which was bought by Douche in 2009 and modified. In 2009 I quit paying 2nd and never heard a peep from anyone. Fast forward to today. I have not payed on 2nd since 2009 which was for 73k. After finally finding someone to help me at Douche I find out they are the 'trustee' of the note on both 1st and 2nd. The person at Douche told me they withdrew the files from the vault with 2nd going to US Bank Corp Trust in 2005 and 1st to Ocwen in 2020. They told me they cannot help me with the 2nd. Is this true? Can I negotiate directly with Douche on the 2nd?

Im not really sure what " they withdrew the files from the vault with 2nd going to US Bank Corp Trust in 2005 and 1st to Ocwen in 2020 " means. Sounds like you would need to negotiate with Ocwen. Check with your county register of deeds and look up the lien in the records. It may help you verify who actually holds the lien.
Since Douche has told you they cant help, I would contact Ocwen. Did you keep any notes of names and numbers you called at Douche? If Ocwen also says they cant help you, having a name at Douche would help you avoid starting all over again.
Finally, did you file bankruptcy in 2009 or just stop paying on the second in 2009? If the debt was discharged in bankruptcy, some states have SOL on how long a debt/lien holder can try to recover.