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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?




Thanks for your reply....I am currently going through the exact same situation. I am 90 days past due since yesterday. They called me a couple of times and told me they are getting ready to charge off...I said good, go ahead and do what you want to. I am willing to settle for $3k on the $84k HELOC. They balked at me and said there is no way they will settle for that much. They asked for the same info like paystubs etc.....and belive it or not but I actually provided that to them today. I talked to a lawyer and he said its ok to provide that to them.....but here is the interesting thing that he told me. As per him HELOC may or may not be considered a purchase money...its a grey area with not a lot of evidence to lean on either side. What he said though was that both my first and second are with Wells and they only have one action against me.....so either they can foreclose or file judgement. They can do both only if they try to file a judicial foreclosure.

I have faxed in my information and asked for either settlement of the HELOC or conversion of the full loan including 1st and 2nd into a fixed 30 yr loan at 2% interest. I don't think that will fly....lets see what happens. I will keep you posted to on the progress.

Sub: #31 posted on Mon, 07/20/2009 - 17:26

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Thanks for your reply....I am currently going through the exact same situation. I am 90 days past due since yesterday. They called me a couple of times and told me they are getting ready to charge off...I said good, go ahead and do what you want to. I am willing to settle for $3k on the $84k HELOC. They balked at me and said there is no way they will settle for that much. They asked for the same info like paystubs etc.....and belive it or not but I actually provided that to them today. I talked to a lawyer and he said its ok to provide that to them.....but here is the interesting thing that he told me. As per him HELOC may or may not be considered a purchase money...its a grey area with not a lot of evidence to lean on either side. What he said though was that both my first and second are with Wells and they only have one action against me.....so either they can foreclose or file judgement. They can do both only if they try to file a judicial foreclosure.

I have faxed in my information and asked for either settlement of the HELOC or conversion of the full loan including 1st and 2nd into a fixed 30 yr loan at 2% interest. I don't think that will fly....lets see what happens. I will keep you posted to on the progress.

Sub: #32 posted on Mon, 07/20/2009 - 17:29

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I have some movement on my settlement offer on the HELOC. Hopefully something positive to report within the next few days.

Sub: #33 posted on Wed, 07/22/2009 - 11:33

ball_mich ball_mich

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Update: I have a settlement offer/letter in hand for an amount that I've agreed to pay. I'll provide the specifics once it is finalized over the next couple of days. I might haggle over some of the language in the letter, or I might just pay it and be done with it. We'll see.

Sub: #34 posted on Wed, 07/29/2009 - 07:37

ball_mich ball_mich

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Hi,

Thanks for the update. I've been assigned a negotiator on my account and I believe I will be in the same process in a couple of days. Would you mind advising on what are the things I should be asking for and whats the first settlement offer in terms of percentage that I should start with.

Sub: #35 posted on Wed, 07/29/2009 - 09:39

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Quote:
Thanks for the update. I've been assigned a negotiator on my account and I believe I will be in the same process in a couple of days.


Well, from my experience the settlement negotiator was not helpful. She rarely returned my calls. She didn't confirm my faxes. She never answered when I dialed her extension. It was pretty lame actually. I spent a couple of months in that group until they charged me off. At that time they sent me to the Recoveries Department. I had much better luck talking with them. They answered when I called. They were serious about settlement. I told them what I could afford and stuck to it. After politely declining their initial offers, they called back about 10-15 days later and eventually they met me at my number.

I'll give you my settlement % when it's final. I'm just cautious until it's paid and final, as I'd hate for anything to jeopardize my settlement.

Sub: #36 posted on Wed, 07/29/2009 - 13:30

ball_mich ball_mich

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Thanks ball_mich. That is some good information. I was wondering if I should pay my 1st until they charge-off my second so that I can keep my house and get rid of the second. I am not sure as to when they will charge off...I am at 97 days so it maybe a while. When did they charge off your acc? Once you are through with your settlement, please do post your %. I appreciate all your help.
Thanks,

Sub: #37 posted on Wed, 07/29/2009 - 14:54

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Quote:
Thanks ball_mich. That is some good information. I was wondering if I should pay my 1st until they charge-off my second so that I can keep my house and get rid of the second. I am not sure as to when they will charge off...I am at 97 days so it maybe a while. When did they charge off your acc? Once you are through with your settlement, please do post your %. I appreciate all your help.


Sure thing. In my experience, they charge off at 180 days, but I think they can do it sooner if they have reason to.

The last 10 days or so I've just been waiting on getting the settlement in writing and having difficulty catching up with the lady I've been working with, due to my work hours and the limited time she works (I think she might be PT and only work evenings). I'm ready to pay and put this one behind me...

As far as paying your 1st and not the 2nd, I can't answer that one. I stopped paying both. Depending upon what kind of leverage you have, that might work, but I'm sure they won't like it and probably will threaten to foreclose the home (if they haven't already). Although, if they know there isn't enough equity to cover the 1st and 2nd loan, they probably won't really go that route. But that's just my opinion.

Sub: #38 posted on Thu, 07/30/2009 - 09:03

ball_mich ball_mich

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Thanks Ball_Mich. Seems like they are just threatening to charge-off but they probably wont do it just yet. I have submitted my financials so lets see what they come up with for modification. I am going to offer 5% for settlement on the HELOC and in the worst case scenario I will start paying the 1st and wont pay on the HELOC, that might just do the trick.

They have been threatening to foreclose too and I have calmly told them each time that I do not intend to keep the house unless I am offered a significant modification for long term.

Sub: #39 posted on Fri, 07/31/2009 - 15:03

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Okay, it's settled. Well, the funds haven't come out yet from what I can tell, but I did check by phone with a payment for today... so it's pretty much said and done now.

I did inquire about some of the language in the settlement letter, but it obviously was going to be a big hassle to get it changed so I just rolled over on that. It's written fairly straight forward.

Anyway, my settlement was for 17%. I feel pretty good about it. I didn't have that much leverage in my negotiations, since it wasn't purchase money. And whether it was covered by California anti-deficiency law was question at best. So given that, I'm happy with where it came out. I didn't think I'd get it below 25-30%, based upon some conversations I had with Wells a month ago when it charged off.

The rep said that the settlement is final once the payment is received, but that there will be a few letters forth coming. I should have a lien release letter come within 30 days and they will finalize the reporting to the credit agencies within 30 days as well.

Sub: #40 posted on Sat, 08/01/2009 - 10:13

ball_mich ball_mich

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