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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?




Quote:
Originally Posted by Anonymous
Great thread guys! Keep it up... Just wanted to ask a question. I'm not up-side-down (yet) and am currently getting mod done for 1st load via another bank. Been told by WF that there is no way they will settle unless property listed as foreclosure or shortsale for >3mo. True? What do you think? I provided my income and etc. and 11% offer.


If you are not upside down, I'm not sure what their incentive is to settle with you. Generally speaking, this means that they'd probably receive more from forcing a foreclosure sale than settling the balance with you.

I did not have my property listed as a foreclosure or short sale, but my HELOC loan was delinquent by 180+ days. That is when they became serious about settling with me.

Sub: #71 posted on Thu, 10/08/2009 - 13:15

ball_mich ball_mich

(Posts: 360 | Credits: )

Thanks ball_mich, would you know where I can look up any info on if 2nd mortgage (WF) can try to collect even if I sell property????

Thanks for any feedback!

Sub: #72 posted on Fri, 10/09/2009 - 12:01

Unregistered


Quote:
Originally Posted by Anonymous
Thanks ball_mich, would you know where I can look up any info on if 2nd mortgage (WF) can try to collect even if I sell property????

Thanks for any feedback!


I don't think there is such a source. Also, it will differ by state. You should look up the anti-deficiency laws in your state. That will determine whether or not they can come after you for the balance left on your loan after a foreclosure or failure to pay.

In terms of "selling" the property, I don't think you can sell it and not pay off the lien holders. I'm pretty sure the lenders receive the funds before you see any. But I think maybe you meant just failure to pay or if you allow the house to foreclose and the 2nd doesn't get paid out in full.

Sub: #73 posted on Fri, 10/09/2009 - 13:07

ball_mich ball_mich

(Posts: 360 | Credits: )

This has been a very informative thread! Here is my situation...home valued currently at around 170k, no first mortgage but a HELOC for 150k and a personal secured LOC for 180k. I'm not sure who would have priority on the lien. Initially the personal LOC was a fefinance of the 150k HELOC, they paid it down to 0.00 but never closed the account. Well, a few months later I received an annual fee statement from the prior HELOC. I called and said I thought the account had been closed, and they said it was paid down to 0 but never closed. I asked if the LOC was still available to me and she said it was. Well, I was in the middle of starting my own business and needed access to funds and used it. Long story short, I lost my job and have a permanent condition as a result of a work place accident. I have been current on both loans (I have no other debt) as they are interest only, but I know when rates go back up I'm screwed. I have 10k still in savings.

Do you think one or the other would be willing to settle? I can manage one loan, but not 2. If I file bankruptcy and foreclose one will be unsecured as it is (according to the law Obama signed in Feb. '09).

Sub: #74 posted on Sat, 12/19/2009 - 13:01

Unregistered


Quote:
Originally Posted by Anonymous
This has been a very informative thread! Here is my situation...home valued currently at around 170k, no first mortgage but a HELOC for 150k and a personal secured LOC for 180k. I'm not sure who would have priority on the lien. Initially the personal LOC was a fefinance of the 150k HELOC, they paid it down to 0.00 but never closed the account. Well, a few months later I received an annual fee statement from the prior HELOC. I called and said I thought the account had been closed, and they said it was paid down to 0 but never closed. I asked if the LOC was still available to me and she said it was. Well, I was in the middle of starting my own business and needed access to funds and used it. Long story short, I lost my job and have a permanent condition as a result of a work place accident. I have been current on both loans (I have no other debt) as they are interest only, but I know when rates go back up I'm screwed. I have 10k still in savings.

Do you think one or the other would be willing to settle? I can manage one loan, but not 2. If I file bankruptcy and foreclose one will be unsecured as it is (according to the law Obama signed in Feb. '09).


You have a complicated situation, and it may be best to consult a BK lawyer for advice.

I think the first question is whether you have the cash available to settle either of these loans? When you are talking about loans of this size, even a 20% settlement is still $30k. You said you have $10k, but I don't think that's enough to settle either of the loans, as it's less than 7% of the smaller of the loans. If you can't get a little more, then settlement probably isn't an option. But if you do have access to more, this is what I'd recommend for your first steps:

1. Know your state's anti-deficiency laws. They differ by state. I don't want to give you any advice on this matter, as I really only am familiar with California's laws. You can probably google around and find quite a bit, which is what I did to become familiar with California law.

2. Find out which loan has the priority on your residence, and which has second. In you loan documents, it's probably spelled out. Any time there are two lenders taking the same collateral for their loans, there is some inter-creditor agreement or language which lays out the priority of claims.

3. Understand if these are recourse or non-recourse loans. My non-purchase money loans are recourse, which means even if they foreclose your home, any money still due after they sell your home, they CAN sue you for that balance. If they were to get a judgement, they could garnish wages, etc. If they are non-recourse, they really can't do much other than foreclose on the home. This will tell you how much leverage you have with the lender to get the lowest possible settlement.

Sub: #75 posted on Thu, 12/24/2009 - 09:49

ball_mich ball_mich

(Posts: 360 | Credits: )

I am about 180 days on a $100k HELOC that will be wiped out in foreclosure of the first. Both are WF. The have me in a delayed foreclosure date with the first and the second keeps extending the chargeoff. I would like to settle the 2nd. I'm in Missouri which has recourse on the HELOC.

Sub: #76 posted on Wed, 02/10/2010 - 18:15

dantheman dantheman
Moderators Cum Industry Expert
(Posts: 860 | Credits: )

Quote:

FYI - In terms of modification of the HELOC, if that is your goal, have you talked to their collections people yet? Man, every time I do, they try to force me into a modification process. They keep asking about my income, expenses, for copies of my tax return and pay stubs. After I decline to provide that information, they say something like "we're taking note that you are declining modification assistance". Then I tell them that isn't true, I'm just declining to provide personal information. What kind of HELOC modification are you looking for? When I asked them what kind of changes a modification would make, it seemed like it was mostly a very small interest rate decrease and pushing the maturity of the line out a year or two. Nothing that seemd to help me much.


If you want help with your loan, you NEED to provide your mortgage company with this information. How else can they determine if you qualify for any sort of modification? They have every right to request for this and for your hardship. Because they have a right to know why you are not paying them as you did sign the mortgage note, correct? And they are only asking to see if they can help you save your house, so help yourself and provide it.

Oh and by the way your Heloc probably will not foreclose on you. Unless they are in 1st lien postion, which I doubt they are. That's probably why they are requesting your "personal information" to try to settle or modify your loan.

Sub: #77 posted on Wed, 02/10/2010 - 20:02

loss mitigation loss mitigation

(Posts: 20 | Credits: )

[QUOTE=loss mitigation;652331]If you want help with your loan, you NEED to provide your mortgage company with this information. How else can they determine if you qualify for any sort of modification? They have every right to request for this and for your hardship. Because they have a right to know why you are not paying them as you did sign the mortgage note, correct? And they are only asking to see if they can help you save your house, so help yourself and provide it.

Oh and by the way your Heloc probably will not foreclose on you. Unless they are in 1st lien postion, which I doubt they are. That's probably why they are requesting your "personal information" to try to settle or modify your loan.[/QUOTE]

Actually, I proved that I didn't need to prove them with any personal information or documentation. Despite telling me that it was a requirement, they settled my HELOC loan for around 17%, if I recall correctly. And I provided them nothing more than what I had been saying all along during my 7 month of phone calls, and that was just my story. In the end, that was sufficient.

I wish the 2nd had chosen to foreclose, then I wouldn't have had to settle with them at all, as under the California one action rule, they wouldn't be able to seek a deficiency judgement. But as it were, I knew they weren't going to foreclose, so I settled them to avoid the deficiency action.

Ultimately, the first did foreclose the home, about 3 months after I settled the HELOC.

Sub: #78 posted on Thu, 02/11/2010 - 09:54

ball_mich ball_mich

(Posts: 360 | Credits: )

Quote:
Originally Posted by danothemano
I am about 180 days on a $100k HELOC that will be wiped out in foreclosure of the first. Both are WF. The have me in a delayed foreclosure date with the first and the second keeps extending the chargeoff. I would like to settle the 2nd. I'm in Missouri which has recourse on the HELOC.


It's a tough situation, I'm sorry. Have you mentioned settlement to the loss mitigation person/negotiator that WF HELOC assigned to you? In my experience, the negotiator was awfully difficult to work with and kept requesting copies of my personal financial statements, monthly budget, bank accounts, etc. I refused to provide any of that and cited that fact that they state any/all information is to be used to collect a debt at the beginning of each call, therefore, they couldn't expect me to provide anything to them. In the end, I didn't settle my HELOC until after charge-off, and it was much easier to negotiate with those folks.

But I think bringing up the topic is the first step, if it hasn't been discussed yet. That way they know that settlement is a possibility.

Sub: #79 posted on Thu, 02/11/2010 - 10:00

ball_mich ball_mich

(Posts: 360 | Credits: )

Hi,

I am planning to settle my second HELOC($106) with WF, which was taken when we purchased the home in 2006 in California. I think it is a purchase non-recourse loan(I dont know how to confirm this). I am current on my payment so far till last month and my next one is coming this 1st.

My first is with Citi - $570

The higher end of appraisal would be around $610-$620, so there is essentially $40-50k worth of equity.

Would WF work with me on a settlement.

Thanks..

Sub: #80 posted on Tue, 02/16/2010 - 12:25

Unregistered



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