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?
Ten
Ho-
You will receive a 1099 of the forgiven debt. Then you can talk to
your tax guys on your options. I was told if you can show you used the
Heloc money towards home improvements that the 1099 can be wrote off. I
will find out for sure in a few months.
Sub: #141 posted on Mon, 11/08/2010 - 11:18
Unregistered
ssanthan- It took about 4-6 weeks to receive the lien
removal. Congrats on the settlement, this forum was greatly helpful for
a lot of us. Now if we can all get good modifications on the first
mortgages we can all get back on track.
Also Congrats Dantheman on your settlement.
Sub: #142 posted on Mon, 11/08/2010 - 11:23
Unregistered
Also I
saw someone else used my screen name saying they have not settled yet.
Obviously that was not me. I settled at 19% as I told everyone awhille
back.
kabbin- I never sent in any financials at all. So i would avoid that
fully. It sounds like none of us how settled until after charge off.
Once it comes to charge off they want to work with you quite a bit more
due to if the home forecloses the first will not pay them anything.
I still am in the review process for a modification on the first with
First Horizon and if there is any success there I will post any
success.. Hopefully that is..
Sub: #143 posted on Mon, 11/08/2010 - 11:35
Unregistered
Trying to Settle in Cali
Thanks for the info. I will wait for 2 months to get my lien removal.
yes the forum was of great help and i couldnt have done it without all
the input. I all ready got my first modified. So from a home front i am
set.
Now i am moving on to settlement of my credit cards. So far i have 3
cards totaling 30k worth of debt. i am close to 45 days late on couple
of cards. Starting the journey on CC settlement.
I too
finally got a settlement approved with WF Home Equity (not HELOC) for
25%. Also note that my situation may be a bit different than others in
the sense that I've been current and have never ever defaulted on any
payments (mortgage/credit cards etc) in my life and have an excellent
credit (just don't want to mislead anyone on this forum). I took this
settlement approach since I just couldn't sustain making payments going
forward in the upcoming months as I recently got married and expenses
easily outdoing my income. Anyhow, there are repercussions with
settlement as it has a hit on the credit, and having to pay taxes on the
forgiven debt which is something I'm willingly taking on. The whole
settlement process in my case seemed much straight forward than most of
the negotiations. Below are my time lines.... 1. Filed for a loan
modification for my Home Equity Loan, in the beginning of September,
2010. 2. Told to provide financial statements which I did (everything
except my IRA/401K statements). 3. Loan Modification application
rejected at the end of September, 2010 based on the grounds that I have
been current and they see that I should be able to keep making payments
moving forward as well. 4. Checked with the rep (who informed me of the
Load Mod rejection) as to what are my options if I wanted to settle. I
was told I could still do that and would need to speak to the Loan
Intervention Department @ WF (Tel. #: 866-970-7821). 5. Spoke to a rep
and I was sent an email with all the information this department would
need to start negotiations. Pretty much what the load mod dept requested
which I did (everything except IRA/401K statements), along with a
initial settlement offer (about 19.5% of the loan). 6. Received a call
from a loan officer a week later and he mentioned that all the documents
were received and just that he is going to take a few days before
getting back to me if the offer is acceptable. He did mention, that
19.5% was not enough generally and WF expects atleast 30-40%. 7. A week
later he called me back and said the offer was indeed not acceptable and
that I need to raise my offer. He also tried to talk to me into saying
that I should maybe not pursue this as I have been current on my
payments and I can manage it and all that blah blah. 8. The next day, I
upped the offer to 20.5% and faxed the letter. 9. A week later, the
officer called and mentioned just going up 1% is not going to work and
we would just be going back and forth. I told him that's already a
stretch to pay but he said likely it'll be rejected but will get back to
me. 10. As expected, he got back a week later and said the 2nd offer was
not accepted. I kept the chat to a minimal before he could talk to me
about not to pursue this and all that. 10. I decided to up the offer a
bit higher, thought it hopefully would work since I was upping my offer
by another 5%, so basically faxed another letter with a new offer for
25%. 12. This time the officer called and said he got the letter and he
would get back in a week or so. 13. Sure enough, he did call me and said
that WF finally has agreed to settle on my 25% offer. He said they would
send a letter stating all these facts which should come to me by next
week or so but I should still be able to get about 30-45 days to make
the payment. Once the payment is posted, he said my account will be
closed (they supposedly don't send a letter stating that which was
strange, but I could call this officer and confirm with him verbally
that its closed). After its closed, the lien handling department could
take up to 90 days before the lien is released which is basically sent
to the county assessor's office and I should receive a copy from the
county. Meanwhile the loan intervention department would mail me the
1099 within the next 30 days. 14. I did receive a letter from WF
stating the my account is closed and the loan is paid/settled just
yesterday. Note: 1. I was very surprised with the speed at which I was
able to reach a settlement as it literally took exactly a month from the
day I sent them my initial request and a verbal offer of settlement was
approved on phone by the officer. 2. Please be diligent with your case
as every case varies and the outcomes will be very different! Thanks to
this thread and the folks on this thread, it very much helped plan my
negotiations.
Sub: #145 posted on Wed, 11/24/2010 - 11:08
Unregistered
You
should try to modify your mortgage before you apply for a settlement.
Most lenders will prefer a loan modification compared to a settlement.
In my opinion, you should contact the loss mitigation department of your
lender and apply for a loan modification. If you can prove your
financial hardship, then you will get a loan modification. You will get
an affordable repayment plan to pay off the dues but your loan term will
get increased. In case, the lender does not agree to a loan
modification, then you can apply for a
settlement.
Sub: #146 posted on Tue, 12/14/2010 - 01:31
Unregistered
If
Anyone can please answer this it would be greatly appreciated. I just
called the Wells Fargo settlement department and they ask for your Bank
statements and 401k is that a must? Do i need to provide that?
anyone who know's from experience it would be greatly appreicated.
thankspj
Sub: #147 posted on Tue, 12/14/2010 - 13:44
Unregistered
Please
hang in there, someone will be along with advice as soon as they are
available.
I
guess Wells Fargo wants to check out whether or not you're actually
facing a financial hardship. The bank will offer you the option of
settlement only if it is convinced that you're in severe financial
crisis and won't be able to make payments as per your payment plan. In
that case, you'll have to give them your bank statements and 401k
details.
Hi
Anna I thank you for your opinion but i am not looking for guesses, i
would rather hear facts. So information from someone who actually went
through the process would be preferred. But again thanks for your
thoughts.
You will receive a 1099 of the forgiven debt. Then you can talk to your tax guys on your options. I was told if you can show you used the Heloc money towards home improvements that the 1099 can be wrote off. I will find out for sure in a few months.
Sub: #141 posted on Mon, 11/08/2010 - 11:18
Also Congrats Dantheman on your settlement.
Sub: #142 posted on Mon, 11/08/2010 - 11:23
kabbin- I never sent in any financials at all. So i would avoid that fully. It sounds like none of us how settled until after charge off. Once it comes to charge off they want to work with you quite a bit more due to if the home forecloses the first will not pay them anything.
I still am in the review process for a modification on the first with First Horizon and if there is any success there I will post any success.. Hopefully that is..
Sub: #143 posted on Mon, 11/08/2010 - 11:35
Thanks for the info. I will wait for 2 months to get my lien removal. yes the forum was of great help and i couldnt have done it without all the input. I all ready got my first modified. So from a home front i am set.
Now i am moving on to settlement of my credit cards. So far i have 3 cards totaling 30k worth of debt. i am close to 45 days late on couple of cards. Starting the journey on CC settlement.
Sub: #144 posted on Tue, 11/09/2010 - 09:56
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Sub: #145 posted on Wed, 11/24/2010 - 11:08
Sub: #146 posted on Tue, 12/14/2010 - 01:31
anyone who know's from experience it would be greatly appreicated.
thankspj
Sub: #147 posted on Tue, 12/14/2010 - 13:44
Sub: #148 posted on Tue, 12/14/2010 - 15:20
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Sub: #150 posted on Wed, 12/15/2010 - 06:01