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Settlement Of Mortgages

Submitted by on Fri, 02/27/2009 - 09:00
Posts: 202330

I have 2 mortgages that if the lenders would settle for 50%? 75%? would consider paying off. The loans are not in arrears and never have been. Both amount to around $100,000 each so have an encentive to pay off. Is this possible?

Hi -
If you read through my posting, I did deal with Wells Fargo. The facts were I tried doing a modification, they rejected outright since I had been current. So I don't think any one can say for sure, so you need to be take a chance based on other people's experiences and most of us can only guess what the outcome may be in your case. Having said that, after my modification was rejected, I called up the settlement dept. and was able to get things going. I was told to modify first and I had to prove them my rejection from the loan mod dept. I provided all financial statements except my 401K/IRA statements. They asked for it, I never mentioned in my letter. One thing I do remember doing it for sure....they had a standard doc they wanted me to fill out for applying for a settlement which had lines for me to fill up my 401K/IRA funds. I created my own statement, just a listing of my expenses, by segregating credit card bills, monthly utilities, mortgage payments etc but never listed retirement funds or provided statements. Like I've already said, I was surprised with the movement of my case. Literally one month exactly I had my settlement agreed upon. Just last week, received the release of the 2nd lien from the county office as well. Hope this helps.

Submitted by on Fri, 01/21/2011 - 16:55

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Just wanted to add to my above comment is as far as I can see the way banks deal with a situation varies very much with every client. For the most part, they will NOT settle if you are current, period! They will want you to work with their loan mod dept. Also if the load mod is rejected, that certainly gives you more leverage to settle and to my understanding, WF seems to be very willing to settle the 2nd loan if it is especially a non-recourse loan, of course first if you've been rejected from a loan mod. The ball game may change completely if you've been behind or defaulted altogether in which case you should be able to settle and I'm pretty sure it depends on the contract (recourse or non-recourse loan).

Submitted by on Fri, 01/21/2011 - 17:04

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When I purchased my home 5 years ago, I obtained financing through WF for both 1st (185) and 2nd (87), 270 on a house valued at 300. Now the house values between 180-210. It appears from this thread that WF will settle for 17-20-25%, depending upon circumstances. Can anyone provide sample text of settlement offer letter? And suggestions on strategy to pursue settlement of 2nd?
I have provided income statement, balance sheet (can afford 1st only, have about 10-15K in assets besides house, including car)...

Submitted by Georgia-Chuck on Mon, 11/14/2011 - 18:23


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It's great to see that this thread had some real legs after I stopped posting. And even better to see that people had some success in getting settlements. That's wonderful news.

I hope to be putting up a few posts over the next few day (or maybe next week) in the credit repair area. I'm a little over 2 years past my foreclosure now and waiting for the new HARP eligiblity requirements to kick in (March 2012) so that I can refinance my current home. The new HARP program removes the criteria regarding previous foreclosures, and I think I should be eligible once that is gone.

In the meantime, I've been working on various attempts to clean up my credit report... well, for a couple of years now, off and on. I wish I could report I had a lot of luck in this regard, but it's been pretty hit or miss and a lot of work.

So my goal is to put up some posts in the credit repair section and see if there is a way we can help each other with out experiences in getting these marks removed. Especially these foreclosures and Heloc settlements.

Submitted by ball_mich on Thu, 01/19/2012 - 14:55


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