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Settlement Of Mortgages

Date: Fri, 02/27/2009 - 09:00
Submitted by on Fri, 02/27/2009 - 09:00
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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?


Trying to Settle in Cali

I will let you know how it goes. So far i have sent them settlement letter and no response from them. I will have to wait another 2 months to approach them. In the mean time if they approach me i will let you know.


Submitted by on Fri, 06/18/2010 - 07:18

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Trying to Settle in Cali

I will let you know how it goes. So far i have sent them settlement letter and no response from them. I will have to wait another 2 months to approach them. In the mean time if they approach me i will let you know.


Submitted by on Fri, 06/18/2010 - 07:19

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Hi Folks, Regarding my $100k HELOC with Wells Fargo (underwater), I received an offer to settle of 60% of the balance at 180 day charge off. Now at 2 months after charge off, I received a FEDEX letter with an offer to settle at 30% and it appeared to offer to accept it in payments. I can only afford 15% over 6 months. Can anyone advise me or share your experience as to how I may get to that figure?


Submitted by dantheman on Wed, 06/23/2010 - 14:18

dantheman

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Quote:

Originally Posted by dantheman
Hi Folks, Regarding my $100k HELOC with Wells Fargo (underwater), I received an offer to settle of 60% of the balance at 180 day charge off. Now at 2 months after charge off, I received a FEDEX letter with an offer to settle at 30% and it appeared to offer to accept it in payments. I can only afford 15% over 6 months. Can anyone advise me or share your experience as to how I may get to that figure?


I recommend talking to someone in the Recoveries Group. Did the letter give you a number to call? I personally believe they have the latitude to settle for less and if you can get them on the phone and show sincerity and apologize for not being able to pay, that you will get likely work better than exchanging letters.

Things I commonly told them were that I wanted to make sure I stayed in touch with them, which is why I was calling them weekly. I didn't want them to think I was avoiding my obligation to pay them. That I was still trying to come up with the funds, mostly through borrowing from family members, but was coming up a little short. Then I told them what I had to settle with. If they said no, I just said that I understood and that I would stay in touch and see if I could find another way to come up with funds.


Submitted by ball_mich on Wed, 06/23/2010 - 16:51

ball_mich

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Quote:

Originally Posted by Anonymous
My Heloc was not a purchase money loan and I wonder if I should just settle for the 20% to be done with it? Did they send a 1099 for the difference?


Well, it's hard to make that kind of recommendation because I am not in your shoes, but generally speaking 20% is a pretty nice settlement offer. I would do my best to plead for understanding and offer 17% and see what happens. If that doesn't work, I'd probably call back in a day or two and accept the 20%. But that's me...


Submitted by ball_mich on Wed, 06/23/2010 - 17:01

ball_mich

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Quote:

Originally Posted by Anonymous
As i said earlier it has been 4 months since i have paid and i have not talked to them yet. WF online does not allow me to login and look at my account, dont know what that meands. I guess i have to wait 2 more months to go until charge off to start working with WF on a settlement i guess.


I would not just sit back and wait. If they aren't calling you and you've already been locked out of your internet login, that's not a good sign. I'd pick up the phone and call them to "apologize" and tell them that even though you aren't paying you want to stay in contact.

I think communication is critical in this process. The fact that they aren't calling you like clockwork every 3-5 days is pretty unusual and I while I understand why you'd not want that happening, it's probably also important to know that your account hasn't slipped in a crack or something.


Submitted by ball_mich on Wed, 06/23/2010 - 17:06

ball_mich

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Quote:

Originally Posted by Anonymous
Trying to Settle in Cali

Another Question. Did they also release the lien on the property, apart from considering the account being settled. I am just curious as to how the wording on the final settlement looked like.


I don't have the letter(s) in front of me, but yes they released the lien on the home. I think I got a separate letter to that end stating that it had been released, but can't recall for certain without going through my files.


Submitted by ball_mich on Wed, 06/23/2010 - 17:08

ball_mich

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Hello, I've been trying for 3 months now to settle my Second with Wells and no luck.(it is not a HELOC just a home equity loan) I did everything the bank told me by sending in tax returns and income documents and now they are telling me that they will not accept my offer of 17%, because they feel I can afford the payment. Instead they offered to modify my payment, but that payment along with my first is almost 50% of my income and is unaffordable. I really wish I had ran across this blog before I sent all my personal info to them because as ball mitch said, they don't need this info for a settlement.

I am current on my first, which was modified by wells a few months ago. The property is underwater 120k and I owe 82k on my second. I am almost 180 past due and it will charge off next week and am terrified of the fact that since it is a recourse loan and they have all my personal info, they may file a judgment on me. Whats the likely hood of this? Will it be easier to settle after charge off?

Dantheman- did you send wells a settlement offer any time before they charged off?


Submitted by on Fri, 06/25/2010 - 16:07

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dantheman

Was you loan recourse or Non Recourse. Which state are you living.
Also did you send any financial information across.

I am trying to work with them and have to decide whether to send them my financial information. Mine is a non recourse loan in CA.


Submitted by on Sun, 06/27/2010 - 23:30

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Quote:

Originally Posted by Anonymous
Hello, I've been trying for 3 months now to settle my Second with Wells and no luck.(it is not a HELOC just a home equity loan) I did everything the bank told me by sending in tax returns and income documents and now they are telling me that they will not accept my offer of 17%, because they feel I can afford the payment. Instead they offered to modify my payment, but that payment along with my first is almost 50% of my income and is unaffordable. I really wish I had ran across this blog before I sent all my personal info to them because as ball mitch said, they don't need this info for a settlement.

I am current on my first, which was modified by wells a few months ago. The property is underwater 120k and I owe 82k on my second. I am almost 180 past due and it will charge off next week and am terrified of the fact that since it is a recourse loan and they have all my personal info, they may file a judgment on me. Whats the likely hood of this? Will it be easier to settle after charge off?

Dantheman- did you send wells a settlement offer any time before they charged off?


Well, there's no way to know for certain if it will be easier to settle after charge-off or not, but in my experience is was vastly easier. The loss mitigation group (i.e. pre-chargeoff) must not have had the latitude to seriously negoatiate a settlement because I never gained my ground with them despite a lot of effort (and they were hard to get a hold of to boot). The Recoveries group, while they were not pushovers, definately had authority to settle. It took some time and multiple phone calls but I settled with them.

If your home is underwater, and depending upon whether this is a recourse loan or not (was it purchase money?), they will likely prefer to settle it than to foreclose your house.


Submitted by ball_mich on Tue, 06/29/2010 - 13:26

ball_mich

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Underwater- A HELOC is a home equity line of credt so you should have the same thing as us. Do not panic, I finished my settlement 2 months after charge off. Where I think BallMich and myself had the advantage we were behind on our firsts and they knew if the first foreclosed they got nothing. I would never send them any documents the whole time, I told them all my tax and income stuff was with the accountant out of town and it cost me money that I did not have to send back n forth. Which actually was true, but either way I would not send them anything because i wanted a settlement not a modification. I am still trying like hell to get a modification on the First 14 months later only to hear its still in review (First horizon seems to be horrible on Modifications)

In my oppinion you should not settle for a dime over 20%. Mine was 19.28 and I believe BallMich was around there too so you know they will go that low. I would tell them you are borrowing money from family and the max you can get is 15% see where it goes keep calling them and say the same thing for a month or so after charge off then if they come back finally with 20% take it.


Submitted by on Thu, 07/01/2010 - 16:07

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Thanks for the advice Ball mitch and Cali. My loan was not purchase money so it is a recourse loan. I am current on my 1st (Wells is also the servicer of this loan) which was modified under HAMP a few months ago. I asked them about extinguishment under 2mp but they told me they are still putting everything into place to start offering it to customers who already have their hamp 1st completed. They said they did sign on to it in April but the whole process isn't finalized yet. I don't know if they would extinguish or just modify to a 1% loan as the guidelines suggest. They also told me if my heloc charges off then it might not qualify for 2mp because it was rendered uncollectable, but that would be a decision the recoveries dept would have to make.


Submitted by on Fri, 07/02/2010 - 10:32

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No Problem at all. I am very happy you were able to get your first Modified. I have not heard of many people that have actually got a good Modification. Is there any advice you could give me on the Modification process of your first? Also what changes did they make for you? Thanks.


Submitted by on Fri, 07/02/2010 - 16:28

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Cali You have to be very persistent and keep in touch with them. I feel like nothing got rolling until I was 60 days late, this is when they started asking for all income documentation. Once you send that documentation follow up on it and make sure they got it, because they are real good at losing it. The HAMP mod I got on my first thru wells reduced my interest to 2% for yrs 1-5, 3% for 6th yr, 4% for 7th yr and for yrs 8-39 it steps up to 5%. The length of the loan was extended to 39yrs also. I think I qualified for HAMP because I currently am employed and under the guidelines they have to bring the loan down to 31% of your income. Unfortunately I have that second I'm trying to negotiate which wasn't put into that factor.


Submitted by on Tue, 07/06/2010 - 16:03

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Quote:

Originally Posted by matamerojo
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?


There is a program out there that is capable of canceling the mortgage by holding the Lender accountable for violations of Federal and State consumer protection laws. check out TheHomeOwnershipProgram.com to learn more. End result is clear title (i.e. no mortgage or promissory note) in less than 12 months as I understand it. Check it out for yourself though.


Submitted by on Thu, 07/08/2010 - 06:55

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Quote:

Originally Posted by Anonymous
There is a program out there that is capable of canceling the mortgage by holding the Lender accountable for violations of Federal and State consumer protection laws. check out TheHomeOwnershipProgram.com to learn more. End result is clear title (i.e. no mortgage or promissory note) in less than 12 months as I understand it. Check it out for yourself though.


I will say, I was very interested in the Produce the Note concept and was heavily invested into researching that methodology. In the end, it was too much work with too little guideance, plus I no longer lived near the home foreclosing which made pursuing a lawsuit to stop it very difficult, so ultimately the home foreclosed.

This an interesting take on the mortgage industry and I've asked my mortgage broker friend to take a look at this website. I'll see what he says.

I really can't find any fault in what they've written, but it still wreaks of scam. Who are these people, what are their names, and why isn't this self evident and on the website, and why are they only offering legal forms and advice instead of a full-service shop?


Submitted by ball_mich on Thu, 07/08/2010 - 09:32

ball_mich

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I'm not a complete expert on this "produce the note" defense but from what I have read, the results of that approach are spotty. First of all you need to determine if MERS was listed as the holder of your mortgage from your title insurance docs when you bought the house. I forgot what MERS stands for but it is a clearinghouse/exchange of mortgages. If your home loan was listed as owned by MERS, it was probably immediately sold to a bank and maybe another bank and another one, etc.

Local cities and counties are suing MERS because on every title transfer, document fees are supposed to be paid to the county and MERS bypasses that whole step trading a mortgage like a stock. This has cost local governments millions of dollars.

The problem with a "produce the note" defense is that it is a point in time argument. If you happen to be going through a BK and are trying to reaffirm (not sure if I have the terminology right since I have never BKd), then you show up at the courthouse to document the mortgage and at THAT MOMENT the bank cannot produce the note, you actually can win something in that case. But to sit at home and blindly send a QWR to the bank asking them to produce the note, thinking that alone will cause a cancellation of your mortgage won't work. They may not be able to produce the note at that moment but they can do a forensic audit and find it etc. Its really not a valid defense against your mortgage in and of itself.

The other thing these "produce the note" legal firms are doing has to do with who SIGNED the note, there are some issues there with the signor representing the bank being some designated low level employee of MERS, again not really kosher but that defense is not cancelling mortgages, it is just stalling foreclosures etc.

There is a site called Mandelman Matters where this lawyer discusses all these types of defenses.


Submitted by on Fri, 07/09/2010 - 10:11

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ball_mich

Did you get to research more about the homeownershipprogram through your mortgage broker. What was his input.

I am trying to research more on this whole concept. I cannot find any successful cases where people ended up with clear title after going through this process. I believe they charge upfront x dollars and have a back end fees if the approach is successful.


Submitted by on Tue, 07/20/2010 - 10:03

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Quote:

Originally Posted by Anonymous
ball_mich

Did you get to research more about the homeownershipprogram through your mortgage broker. What was his input.

I am trying to research more on this whole concept. I cannot find any successful cases where people ended up with clear title after going through this process. I believe they charge upfront x dollars and have a back end fees if the approach is successful.


Well, he said he is familiar with the claims that give rise to the strategies employed by thehomeownershipprogram, but that he doesn't know if it works or not. He forwarded me a document or article that he had which basically outlined the same issues and arguments of fraud that is made by this program and the others like it.

I've been doing mega research on it. And I'm not sure if it works. I've found essentially all of the administrative documents they use to complete this process at places online. But does it work? Did they get free & clear title and avoid foreclosure? I don't know. Yesterday I put about five letters in the mail to folks who tried this and am hoping to get a response as to success or failure. We'll see.

But I will say, a lot of this "feels" like a scam. These guys are using multiple websites to promote the same thing. Their recordings on their websites allude to other corporate names (or in the least D/b/a's). They work almost exclusively on a first name basis (maybe more info if you sign up, I don't know). One of the founders goes by Russell on one website and Rusty on another. I can't find any of these businesses on the BBB website. It's just a real web of... I don't know.

Now, having said that, I really like the argument made. Fraud in the factum. In most cases the lender actually never puts any capital at risk, thereby how can they have "loaned" you any funds? If they haven't loaned you funds, the promissory note and thereby the deed of trust are not enforcable. Makes a lot of sense to me.

But I don't know what the court says. And I'm not sure that even if these folks get their home free & clear, that they aren't going to be sued down the road by the bank (probably conveniently after the homeowner pays the 25% backend fee to thehomeownershipprogram).

And one of the key elements missing is what happens after this administrative action? After you strip the security interest and cancel the mortgage and revoke the power of attorney, etc... It doesn't mean the lender agrees, it just means they didn't act on the QWR (with 192 separate requests/questions). It's up to the homeowner to then file a lawsuit in US court to affirm the actions taken. They don't talk much about that, but trust me, the lenders are not going to roll over at the sight of a lawsuit and claims of fraud. But still...

It's risky, but if I find confirmation that this has been successful, I'll probably try to put together a team of like-minded folks who want to try this together on a DIY basis.. and we can all leverage each other's experience as we do it concurrently. I've actually already started a yahoo group (private group) and started uploading some key documents that I've found. But first I want confirmation of success by multiple parties before I get too far along and find a team of defrauded homeowners.


Submitted by ball_mich on Tue, 07/20/2010 - 10:38

ball_mich

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ball_mich

Thanks for your detailed explanation.

I too found that they seem to operate using different websites like createhomequity.com etc. I found couple other which i suspect is from the same individual or group.

I will be happy to participate in trying out this approach and would be great if you can add me to the group. I can send you my email address so that you can invite me to the group when you think you are ready. Also how did you get hold of the 5 people who tried these program. I am trying to find references but have not been successful. Keep me informed about when you receive your responses.

Update on my WF HELOC.

I talked to Stage 7 group (Home Equity Solutions. They called it Pre charge off dept) person name Michael. He wanted all my financial so that they can first try me for modification and then decide if they want to settle. I made them clear that i don't want modification and need only settlement and offered them 7% on my non recourse loan. I told them i am worried about sending my financial. I told them i will call back in another 2 weeks and see if anything has change at their end. So as of now its at stand still and 30 days from charge off.


Submitted by on Wed, 07/21/2010 - 12:23

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Quote:

Originally Posted by Anonymous
ball_mich

Thanks for your detailed explanation.

I too found that they seem to operate using different websites like createhomequity.com etc. I found couple other which i suspect is from the same individual or group.

I will be happy to participate in trying out this approach and would be great if you can add me to the group. I can send you my email address so that you can invite me to the group when you think you are ready. Also how did you get hold of the 5 people who tried these program. I am trying to find references but have not been successful. Keep me informed about when you receive your responses.


ssathan - sign up for an account and send me a private message.


Submitted by ball_mich on Wed, 07/21/2010 - 12:44

ball_mich

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ball_mich,

Another thing to add. I though i did see them talking about filing a federal lawsuit(May be it might have been another site, as you said there seems to be many sites), but did not get what the exact contents included in the lawsuit. They would do an forensic audit on the closing documents for supporting the lawsuit.


Submitted by on Wed, 07/21/2010 - 17:00

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Quote:

Originally Posted by Anonymous
Hi,

I have browsed a few pages on this thread but I haven't found a decision on the tax aspect of the HELOC settlement.

Can you shed some light into the tax consequences of the HELOC settlement?

Thanks


I don't think anyone here is a tax expert or CPA. You should probably seek this kind of advise from someone who specializes in it.

Having said that, I received a 1099-C for the amounts "forgiven", just as you would with a credit card settlement. I do think it is treated as taxable "income", but I had a CPA prepare my taxes so I am not certain.

I believe there is also an insolvency test as well, and if you are insolvent at the time you settle, the amount is not taxable. But again, check with a professional on the matter.


Submitted by ball_mich on Tue, 08/17/2010 - 09:01

ball_mich

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To tell the truth, it depends on various factors, and I am not in position to reach to any conclusion at the moment.


Submitted by on Fri, 09/17/2010 - 00:50

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Ssanthan- have you got anywhere on your settlement? It should have went to charge off by now. I did not get them to a good settlement to almost a month after charge off. Keep us posted and good luck.

Ten Ho- You will receive a 1099 for the debt forgiven. then you have to use a tax guy to try and cut it down to little or nothing by showing you put the HELOC money in the house. At least that is what a few Tax guys have told me. Hope that helps.

Anybody out there had any success on a modification from First Horizon??


Submitted by on Thu, 09/23/2010 - 11:51

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Trying to Settle in Cali

Thanks for Checking. Mine is exactly one month past charge off. Right now i have brought them to 25%($28,000). I am willing to settle upto 18%($19000). I have an offer to them for 15% and they have not comeback yet. So i am currently working with them on a settlement. Not sure if they will come down to what i want. If they dont come down to 18%, i am thinking of stopping to work with them and see if i can work with any CA, because my HELOC is a purchase money in California. So i a have some protection.

I got my First Modified and got an inhouse mod similar to HAMP rates. So i am happy with the 1st. So its in my best interest to settle the HELOC. Lets see where this goes. i will update my progress.


Submitted by on Tue, 09/28/2010 - 11:56

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Hi -
I'm also trying to start negotiations with Wells Fargo to settle my Home Equity Loan (I have a 1st loan with IBM LBPS). I'm not sure how it'll work out. I've been current on all my payments until now, however I'm finding it very tough to make the minimum payments. I have a question to anyone who is trying to settle with Wells Fargo. They sent me a email with the docs that are required to be submitted to start negotiations. They also sent an attachment of a Financial Statement (pdf) doc which I need to supposedly fill up and send them along with the other docs. Has anyone filled this doc or made your own financial statement (which basically should list one's assets/debts). Can anyone of you shed some light if you did get such a pdf doc to be filled out and if you did, did you use that or prepare your own statement. Any help would be greatly appreciated. I'm concerned mainly since this doc wants me to list my IRA/401K information. I don't want to do that as they may expect me to liquidate those assets (I have about 35K in both IRA/401K combined) towards settlement and I cannot afford to do it. I owe about 72K and I'm planning to make an initial offer of about 18K which I have in liquid assets.
Thanks,
SK


Submitted by on Wed, 09/29/2010 - 12:22

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People who have had success settling has done it after charge off. It depends where you are in your loan payment. Are you behind? Are you Current?. Also both ball_mich and Trying to Settle in Cali did not provide any financial information. If you give the financial information i would assume that they would want most of what is in there. Also your offer seems to be more than 20% i.e initial offer. i would think if they settle they would eventually make you raise the offer to much higer terms. May be you can start at 10% and work your way up


Submitted by on Wed, 09/29/2010 - 21:57

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Just an update for ball_mich and everyone: I settled my WF HELOC back in June/July 2010 for about 20% in 12 payments. I was unable to keep up with the monthly payment because I settled $250k in debt this year and used up all resources. The settlement terms stated that if I failed to pay as agreed, the settlement would be cancelled and all money paid would simply apply to the original balance of the HELOC. Much to my pleasure and surprise, when I called them and told them I needed to change the amount of the monthly payments, they accepted my revised offer of 5% over 6 months and 15% lump sum (at bonus time). We do still live in the home and are in trial HAMP modification on the first.


Submitted by dantheman on Sat, 10/23/2010 - 19:05

dantheman

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We agreed to a settlement for 17.5%. I Sent them the money and they said they will wait for 30 days and then send the info to Credit bureas, IRS, Lien removal. For people who have already settled, how long did it take to get the lien removal letter from the county.

i would really like to thank everyone who provided their valuable input during this whole process. Now i have to start working on my CC's.


Submitted by on Thu, 10/28/2010 - 14:09

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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.


Submitted by on Mon, 11/08/2010 - 11:18

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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.


Submitted by on Mon, 11/08/2010 - 11:23

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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..


Submitted by on Mon, 11/08/2010 - 11:35

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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.


Submitted by ssanthan on Tue, 11/09/2010 - 09:56

ssanthan

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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.


Submitted by on Wed, 11/24/2010 - 11:08

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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.


Submitted by on Tue, 12/14/2010 - 01:31

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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


Submitted by on Tue, 12/14/2010 - 13:44

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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.


Submitted by Anna Sweeting on Tue, 12/14/2010 - 23:05

Anna Sweeting

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