Share post
member profile picture
Posts: 1
Credits: 0
[Donate]

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?




Congratulations. Its good that its out of your way and you are ready to move on. I appreciate your effort of posting all this online for helping other going through the same situation.

I will post an update if I am able to settle with them.

Good luck Ball_Mich,

Thanks,

Sub: #41 posted on Sun, 08/02/2009 - 15:18

Unregistered


Thanks. Glad, I could help out with my experience. Happy to answer any other quesitons about my settlement process, if people have anything to ask.

Now, I need to settle my Wells Fargo credit card. And if I can get that done soon, there just might be enough time left to short sell this property. But we'll see, time is running short.

Sub: #42 posted on Mon, 08/03/2009 - 08:31

ball_mich ball_mich

(Posts: 360 | Credits: )

Hi Ball Mich,

I just got to know that I was assigned a Negotiator called Amy and she has requested Broker Price Opinion and is waiting for some internal documents. She might contact me around a week from now. Do you know if they did that for your property too i.e requesting a Broker Price Opinion. If they did, how long did it take for you to settle with them after the BPO? Just trying to prepare and see whats coming next.

BTW good luck on settling on the WF credit card. Am trying to do the same with CITI!!!

I hope you do check your messages on this site now!

Sub: #43 posted on Fri, 08/07/2009 - 15:24

Unregistered


Wells did not request a broker's price opinion in my case, which is essentially just an appraisal.

Do you have equity in your home? Or is it close (i.e. FMV close to the debt on the property)? I only ask because in this market, a BPO seems like a wase of time. In most cases it is pretty self-evident whether there is equity in the home or not to cover a HELOC loan. In my case, the 1st mortgage was underwater by about $50k in the best case scenario with the 2nd getting nothing (and this presumes an optimistic sales price). I'm sure they didn't need a BPO to figure that out that they would get nothing in a foreclosure sale.

So sorry, can't help you with this one. You probably should watch your statement though, as they will probably charge you for the BPO, and that charge MAY not be allowed under your loan agreement. Any kind of discrepancy like that can help you to gain leverage with these guys.

Sub: #44 posted on Fri, 08/07/2009 - 16:49

ball_mich ball_mich

(Posts: 360 | Credits: )

Ball Mich,

Thank you so much for all the info you have provided here. I am talking to a Settlement contact at WF right now. They aren't returning my calls at this point, vmail is full. Either way, I have a first with another mort. company for close to $700k which would be about $100k under if house short sold tomorrow. The second with wells is a recourse loan that we owe close to $200k on at this point. We have no equity in our property. We have offered the settlement department 10% on the second loan but haven't been able to connect again with them at this point. Our neighbors did say they saw someone taking pictures of our house recently and the person was also asking about what our HOA dues were. I am guessing that this was someone from WF who was doing their own appraisal. I am curious on your loan at this point how long did it take before you were able to settle, two or three months..? The other question is whether you were able to avoid any negative credit ramificiations as a result of the settlement? Finally, do you know if WF will be able to sue you in the future for a deficiency on the settled loan....? Finally, did you provide full information to WF in the form of all assetts and debts, etc. They are asking me now for a list of 401k's and want to know about all my assetts, which I haven't shared, however I have given them my personal income situation.

Thanks very much.....ChrisF

Sub: #45 posted on Sat, 08/08/2009 - 21:51

Unregistered


Ball Mich,

Thanks for the reply. Yes, value of my house is below the 1st Mortgage so HELOC is completely wiped out. Even I was surprised as to why they would waste time on a BPO but on a second thought, that could be a legal safeguard for them against their investors, maybe?

I was told that I will hear from my negotiator or she will update my account next on the 12th of August. Will see what she comes up with.

My loan is purchase money and there is no equity in the house so I used to think I may have leverage but seems like banks are willing to take loss but they are not willing to bend...maybe they don't want to give out a wrong impression that they are willing to take what they get.

Will keep the forum updated with any new information I have

Sub: #46 posted on Sun, 08/09/2009 - 14:41

Unregistered


Quote:
I am curious on your loan at this point how long did it take before you were able to settle, two or three months..? The other question is whether you were able to avoid any negative credit ramificiations as a result of the settlement? Finally, do you know if WF will be able to sue you in the future for a deficiency on the settled loan....? Finally, did you provide full information to WF in the form of all assetts and debts, etc. They are asking me now for a list of 401k's and want to know about all my assetts, which I haven't shared, however I have given them my personal income situation.


I was assigned a negotiator about two months before I charged off, call it roughly at 120 days past due. But I settled it about 20-30 days after I charged off, so roughly 200 days past due in total. That last 20-30 days I was dealing with people in the "recoveries" group, and they were much easier to work with than the settlement negotiator that I had been assigned previously.

My understanding is that they cannot sue for a deficiency judgement. The settlement letter was not written as clearly as I would have liked in that regard, but it did state that the unpaid balance was "forgiven". I think they'd have a difficult time taking me to court and winning. I also did ask the person who I was working with in the recoveries department, and they told me that no further collection action would be taken. It was nice to hear that, but ultimately all you have to go by is what is in writing.

I'm not sure how to avoid negative credit ramnifications from settling debt. When I started out, I was ambitious and thought I could negotiate all that stuff. But I've found that it's hard to have your cake and eat it too. I don't think any of my creditors would accept a settlement where I walk away with a clean reporting history. My thought is that I'll deal with this down the road. Much better to get the debt taken care now if possible.

I didn't provide them with any documents to support my situation, but I did give them some verbal indication of my income, debts, monthly expenses, etc. I couldn't get around this, and I did try. But other than a 3 minute conversation about this stuff, I provided nothing else.

Sub: #47 posted on Tue, 08/11/2009 - 12:05

ball_mich ball_mich

(Posts: 360 | Credits: )

Quote:
My loan is purchase money and there is no equity in the house so I used to think I may have leverage but seems like banks are willing to take loss but they are not willing to bend...maybe they don't want to give out a wrong impression that they are willing to take what they get.


Well if your HELOC is non-recourse, and there is no equity in the home to cover them in a foreclosure sale, they are between a rock and a hard place.

But even then, they probably do not want to take a loss on the loan. So for example (and just my estimation), if at 120-150 days past due, they keep the loan on their books at 25%(i.e. 25 cents on the dollar), and you are offering to settle at 10%, accepting your settlement results in a 15% loss. Most likely they will have a difficult time approving it.

If you wait until they charge you off, this implies they have marked your loan down to zero. If you then settle at 10%, they get to record income from realizing value on an asset they wrote down to zero. It sounds silly, but I really do think this type of accounting comes into play.

Sub: #48 posted on Tue, 08/11/2009 - 12:12

ball_mich ball_mich

(Posts: 360 | Credits: )

That makes so much more sense now. I guess, this is precisely the reason they are not willing to negotiate at a lower amount. I've had so many conversations with their reps and each time they say settlement is not acceptable even if they end up foreclosing and not getting anything.

I would scratch my head to understand their logic....but the accounting gimmick you pointed out does make sense.

Sub: #49 posted on Tue, 08/11/2009 - 18:19

Unregistered


Guys, all you need to do is talk to the Loss Mittigation Dept. Have all your facts straight and simply tell them you are looking to settle out of bankruptcy court and offer them 5%. This means (as in my case) a 50k HELOC can be settled in full by simply sending them a casheir's check for 2500.00. Doing it for friends and family now... Mine is done.

Sub: #50 posted on Thu, 08/13/2009 - 11:25

Unregistered



Page loaded in 1.466 seconds.