Negotiating the debt with Servicer

mimiy

LoanSafe Member
Mar 14, 2012
26
0
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My purchase money 1st and 2nd was with Countrywide in 2095. In 2006 I refinanced with Greenloint for a 1st and 2nd which paid off Countrywide. Around 2010, Greenpoint sold or transferred the 1st to Chase and the 2nd to BofA. I did a Successful Hamp mortgage refi on the Chase 1st snd was part-way through the process when my BofA HELOC was transferred to Real Time Resolutions. This was around 2013.

later in 2013, Chase transferred the servicing of my 1st to Select Portfolio. I have stayed 100% on time with all SPS payments since transfer. Our AZ1st was deeply underwater so I was advised to ignore the HELOC bills from RTR which was not modified and RTR was billing the original monthly amount I could not afford. I have never made a payment to RTR not given them financial information.

Early on they started calling and sent me a form to fill out which I never responded to. They stopped calling immediately after I sent a letter to contact me only by mail. For years I either received nothing from them or received maybe one notice or offer to settle a year at higher than I could afford.

finally, about 18 months ago I started receiving regular monthly statements (bills) which I ignored.
My 1st was still underwater and is close to the. cusp of moving into equity so now I get a “legally required” letter by regular mail just asking because to get in touch,

why now? If they hsve run comps now, they may believe there is equity to get but they would still not get anything which I need to communicate. I had two sets of comps run which show a range of $424k to around $457k. My payoff on the 1st is around $453k. The low comps are in my development.

To sell at a price that covers the 1st, we would need to paint our exterior, paint the inside, recarpet throughout, fix the pool heater and retold the pool (none of this done in 15 years). Then there is realty and/or foreclosure abd closing costs. Even with all that,I doubt our home would sell on the high end as there is a lot of comparably priced new construction all around us.

Why else now? The HELOC payoff is in 2021, so less than two years away. Also, the SOL has run out based on the month and year I first fell into arrears.

I am concerned that RTR May ignorantly believe they can now squeeze sone money out of a foreclosure and file a Notice of Default which would kill my rebuilt fair credit rating.

if I can get them to accept 5%. I presently have a fair enough credit rating that I can borrow that much to fund a 5% lump sum amount for them to release the lien and forgive the debt. On paper, I am insolvent though so I should avoid a tax bill on the forgiveness.

this is probably an optimum time to settle as on another year there may be enough equity to interest them in starting foreclosure and because they may believe that now. If I open the door to settle, my concerns are as follows:

1. I would like to avoid filling out forms with all my bank accounts etc. in case they will not accept my offer.

2. If they counter with any higher amount, I won’t be able to fund it.

I prefer to have all communications with RTR in writing and, in fact, would prefer to have a and attorney handle making this offer and the negotiations if not too expensive. If I wind up doing it myself, what is the likelihood that I can get by doing all of this only in writing?

My thought is that I would write a brief letter simply stating that I have a lender who will loan me just enough to fund an offer of 5% to resolve the debt which I am willing to do an exchange for a full release of lien and 100% forgiveness of the debt.

I would state the home value range in the two Real estate carbs that are from two different realty companies end of month apart and would explain why my home is in the lower ridge and that even in the Highbridge there would be deficiency with the fees that would be involved in a short sale or for closure that would enable them to collect nothing. I would also include the pay off notice that I just received shut the lender of my first. These papers with Support what I am telling them regarding the homes current value Real estate curbs that are from two different realty companies end of month apart and would explain why my home is at the Lowbridge and that even in the high Ridge there would be deficiency with the fees that would be involved in a short sale or for closure that would enable them to collect nothing. I would also include the pay off notice that I just received for the lender of my first. These papers with support what I am telling them regarding the homes current value And that my offer Is there only path to getting The step resolved for any amount for the foreseeable future.

I would be interested in what anyone here would advise me regarding my objective of a 5% offer and my ability to succeed by standing my ground with the paperwork I mentioned that I cannot except a higher counter. I would especially be interested in whatever an attorney here has to say that has dealt with real time resolutions. Lastly, I would be interested in hearing from any attorney who has been successful at least types of negotiations especially with RTR, and what your fee would be for assisting me.

I do not believe I ever received notification of any of the lawsuits against countrywide or Bank of America. Is this because these came about after I refinanced or after my loans were sold or transferred to do servicers Edward that matter? I Purchased many loans with countrywide were in 2005, my refi with Greenpoint was in 2006 cover at my loans were sold or transferred to do servicers around 2010 to 2012. Both are still active.
 

Jzone

LoanSafe Member
Jun 20, 2017
168
20
18
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I doubt if 5% offer for a settlement would be accepted in todays rising markets. Most are 20-30% now or the servicer is not interested in a settlement anyway-they are happy to wait it out.

You say you were advised to not pay your HELOC back in 2013. Why? And why did you not file bankruptcy at that point? Bankruptcy would of eliminated the debt and you could walk away. Your credit already took a hit, so bankruptcy at that point could not of made it much worse.

It sounds like you are current on your 1st, but havent paid on the 2nd in years? If your only concern is about the 2nd foreclosing, it would be unlikely, but not impossible. In most states, the 2nd can foreclose, but have to also pay off the 1st in order to bring foreclosure.

Unless you really need to stay in the house or the area, I would just keep doing what you are doing. Pay the 1st and ignore the 2nd. Do not initiate contact with the 2nd and continue to respond only in writing.

I filed chapter 7 bankruptcy in 2011. Have continued to pay the first and not the second. Still no equity in my house and I have no need to sell in the near future. However, maybe 10 years from now I may want to sell.

Because both my 1st and 2nd have been discharged in bankrupty, I can simply leave and owe nothing. It would be a difficult decision, but better that I walk away with no debt, then to walk away but still owe $200,000.