Looking for a Settlement letter from NES collection agency for my 2nd Mortgage
Date: Fri, 01/14/2011 11:27
PLEASE ADVISE.... HELP.....
I have a line of credit (2nd position) with PNC Bank. My first mortgage is with PNC Mortgage. They are sister companys but acting independantly. Im currently in the foreclosure process with the first mortgage. My current balance on the first mortgage is $480K (principle only $401K). I originally went down the short sale route after recieving a telephone call from PNC Mortgages(1st) loss mitigation department. The said they would except a short sale offer of 65% ($265K) and that I needed to contact PNC Bank (2nd Mortgage) He advised that the would probably accept 10% ($35K) after calling and confirming this with PNC Bank. I listed my home at the reduce rate and started to recieve short sales offers. Three offers were $50K higher than PNC"s combined verbal acceptance amounts. All offers were rejected by PNC. They never once counter offered. In addition, PNC's policy is to pursue all deficiency balances. So I did not see the benefit to short selling. I then saw the opportunity to short pay-off my home. I managed to secure finacing from a third party lender. However they will only finance 80% of my current homes value. The third party bank's appraisal total $440K. I manage to pull together the $88K to meet my current homes value. I offered the first mortgage company to 100% of my principle balance $401K (they would need to waive their $80K in interest and fees). I then offered the second position lender $39K (the would need to waive $330K). PNC Mortgage still has not accept or rejected this offer. They have decided to reappraise my home. There last appraisal totaled $480K and that was Sept 2 2010 (90 days ago). Im currently waiting.
Since then PNC Bank (second position lender) gave up on my loan. They CHARGED OFF my account and assigned it to NES (collection agency from OH). "THIS IS WHERE I NEED ADVISE"
I have spoken to NES however I have not received any written correspondence from PNC Bank or NES with reference to my account. Only telephone calls. After providing them with the long version of my events. I offered them the same amount I offered PNC Bank ($39K). The collector talked over me and indicated that PNC Bank has approved them to accept $50K as a settlement in full. It is more than I have to offer but I will not let $10K get in my way of settling this. So I asked for them to provide me their settlement in writting. With advise from my attorney, I also provide them some language that needed to included in their SIF letter. Please note I still have not recieved any verification from them or PNC about this debt. I called PNC Bank, they did say that my account was WRITTEN OFF // CHARGED OFF and assigned to a collection agency but could not confirm it was now with NES.
To my suprise, I recieved a promt response from NES but sadly only a 2 sentence SIF letter. "We have been authorized by our client to accept $50K as settlement in full for the above referenced account (NES acnt #). The owner will issue a release of lien after receipt and verification of the payment."
I recieved this offer 1/12/2011 and since then I have recieved 51 documented telephone calls from them. I stopped taking thier calls. Im trying to get them to provide me VALIDATION OF DEBT. I need to know that this is a legitimate offer and that PNC Bank accepted, approved and waived all their rights and will provide me with a Final release of lien to my property and my personal guarentee.
My attorney and I are still in the process of trying to short-pay-off my first mortgage. If I make payment to the second this strengthens the first mortgage position. Forcing me into a worse case scenerio. Paying off 100% of first mortgage debt $480K as well as the $50K to second. Putting myself into $90K of negative equity in my property. How do I handle this? Common sense say wait for the first to reappraise my home and find out if they are willing to accept less than 100%. Up to now, PNC Mortgage (1st) (has not agreed to accept anything less than 100%). PNC Bank (2nd position) quoted PNC Mortgage "we will not accept any settlement". PNC Bank (2nd) told me that is why they gave up on my account.
IM LOOKING FOR ADVISE.... How can I get NES to provide me with a proper SIF letter??? Do I pay-off second mortgage before I have a deal in place with the first? Should I put $50K in a escrow account and treat this like a property closing. Im scared that I will be throwing away $50K and I still may lose my house to foreclosure and still face deficiency balances and face bankruptcy.
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