Do we have any options?

A

Abhb13

Guest
Please help with either options or the correct person to contact to try and resolve this situation.
in 2005 we purchased a home 1st mortgage with Wells Fargo 2nd with Option One
In 2007 we filed CH. 13. We were discharged in 2009. Neither mortgage was reaffirmed. We stayed current with Wells Fargo and fell behind on the option one.
6/2008 we received a letter saying Option one was transferring our servicing to American Home Mortgage Servicing.
9/2008 we received a letter from AHMS after we had reached out to them stating there was no principal balance due and they had no further information.
1/2009 we received a letter from Real Time Resolutions stating they were now our servicer.
we didn’t pay them for some time. They sent us a settlement letter. We were unable to do anything at the time.
fast forward to present. We finally have equity in the house. We would like to do a cash out refi and use the money for home repairs and upgrades and potentially settle with Real Time.
What if any options do we have? Do we have any recourse because of the gap between letters from AHMS and RTR?
How much could we possibly owe if anything on the 2nd?
Neither Mortgage is showing on credit report. Real Time is not either. We had a title search done and it only shows the original Deed and Trust to option one from 2005. Our D/T with Wells Fargo also shows as being reassigned to HSBC in 2015.
should we contact a real estate attorney? Real Time to see if they would settle? Would we be able to refi with a settlement amount included?
 

Jzone

LoanSafe Member
Jun 20, 2017
178
24
18
69
Please help with either options or the correct person to contact to try and resolve this situation.
in 2005 we purchased a home 1st mortgage with Wells Fargo 2nd with Option One
In 2007 we filed CH. 13. We were discharged in 2009. Neither mortgage was reaffirmed. We stayed current with Wells Fargo and fell behind on the option one.
6/2008 we received a letter saying Option one was transferring our servicing to American Home Mortgage Servicing.
9/2008 we received a letter from AHMS after we had reached out to them stating there was no principal balance due and they had no further information.
1/2009 we received a letter from Real Time Resolutions stating they were now our servicer.
we didn’t pay them for some time. They sent us a settlement letter. We were unable to do anything at the time.
fast forward to present. We finally have equity in the house. We would like to do a cash out refi and use the money for home repairs and upgrades and potentially settle with Real Time.
What if any options do we have? Do we have any recourse because of the gap between letters from AHMS and RTR?
How much could we possibly owe if anything on the 2nd?
Neither Mortgage is showing on credit report. Real Time is not either. We had a title search done and it only shows the original Deed and Trust to option one from 2005. Our D/T with Wells Fargo also shows as being reassigned to HSBC in 2015.
should we contact a real estate attorney? Real Time to see if they would settle? Would we be able to refi with a settlement amount included?
I would contact your Chapter 13 bankruptcy attorney. Are you sure it was Chapter 13 and not Chapter 7?

Chapter 13 provides you with a payment plan to pay off your creditors. If you didnt make the payments, then the debt is not discharged.

Review your discharge paperwork from the court. It will clearly state what debts no longer can be collected. Settling a debt after bankruptcy is something you can do on your own.

First, I would check with your county register of deeds and see who actually holds the lien. Liens can be assigned. How long ago was your title search done?

If your bankruptcy is officially discharged, RTR cannot collect on the debt but can foreclose because they have a lien on the property.

In todays housing market, you will probably not see a settlement offer of less than 20%. Lien holders have no incentive to settle with rising home prices. When prices start to fall, settlements are more common
 

just_me

LoanSafe Member
Sep 14, 2015
561
45
28
After so many years of non-payment it's very likely that RTR cannot collect through foreclosure. (Statute of Limitation Defense) RTR can easily do nothing but hang around and wait for you to sell or refi to assert their lien. My best guess is that they will give you a payoff quote of the full amount including accrued interest. Your BK may affect whethor or not they can add certain amounts and interest accruals. You will be lucky if they accept only the principal amount. Sure, you can try a lowball offer to see if they are negotiable. Some have been successful. It depends on the market in your area. I'm not a lender so I don't know if you can take out an equity loan without addressing this "silent lienholder." (a possibility for a smaller loan or line of credit may exist?) You could also try to remove the lien with a quiet title first but I hear that is difficult. Some lawyers have free consults.
 
A

Abhb13

Guest
Thank you for your replies. Yes, I am definitely sure it was a Ch. 13.
When we filed the past due amount was included in our plan. We kept up with our first but unfortunately fell behind with our second. After we received the letter from option one stating they were moving servicing to AHMS we contacted them to try to set up a new payment arrangement. that is when we received the letter from AHMS saying there was no principal balance due and they could provide no other information. Why would it take real time 4 months to contact us?
At far as the leins on the house, we have 3 recorded with the register of deeds office. Our original 1st with Wells Fargo. That was reassigned to HSBC in 2015. I’m guessing they are only servicing it because we still make all payments to Wells Fargo. And the original 2nd with Option One. There is no record of Real Time anywhere other than them sending us monthly statements. The Title search was done two weeks ago and also has no record of Real Time.
Should we reach out to a real estate attorney or just try and negotiate with Real Time on our own?
we would be happy to pay even 50% of the original balance if that would put this behind us. The problem is that we would need to refi to get the cash out to pay that. Is there a lender out there that could make that happen?