New Servicer for Charged Off 2nd Starting Foreclosure Process - WA - Land Home Financial

landlord in olympia

LoanSafe Member
Mar 3, 2012
I got a scary letter today from a law firm, and I need some advice/help from the wonderful people here at LoanSafe.

Property Info:
SFR Rental Washington State purchased for 265k in 2006. Probably worth 325-340k on a retail sale, much less on a foreclosure.
1st w/ Chase (was Washington Mutual) for 180k
2nd w/ Land Home Financial Services for 100k + 56k in past-due payments they claim (Originally a 95% heloc with a bank that went out of business National City. Then PNC, then SLS)
(I do not know if it helps me, but I have the payment history with PNC which shows the amount LHFS is sending me is incorrect)

I stopped paying the second in 2012 because I owed way too much, everyone was getting bailouts, and the rent was not enough to cover the mortgage. I am past the personal statute of limitations on the debt, as far as I know. It charged off in 2013.

All along, I wanted to settle the loan. I followed the LoanSafe thread on settling a second, which basically said to ignore the lender until they send you a reasonable offer. I never got a reasonable offer. 2 years ago, they offered me 70k. That is more than I can cut a check for. Right now, I kinda wish I had been able to do it.

A couple of months ago I received notice that there was a new servicer (Land Home Financial Services).

Today, a letter came from an Attorney in Kirkland, WA: Zieve, Brodnax, & Steele
Land Home Financial Services is the Beneficiary's authorized agent.
They say the Beneficiary is IslandCap LLC, which was only established 4 months ago.
From doing some research, it seems IslandCap LLC is owned by a company called Ophrys LLC. Ophrys LLC is owned by another corporation and it looks like a guy named William Weinstein. Bill Weinstein is the CEO of Orphrys, and a company called Weinstein & Riley PS is the registered agent for them (relationship unknown). I am providing this info in case anyone has experience working with, negotiating, and hopefully settling with any of these companies.

This letter they sent is the same letter that I was given before the official notice of default on a foreclosure once. It has all the 30 and 60-day notices of what will happen, and all the URLs and phone numbers for assistance. It looks like they are starting the foreclosure process, which I guess I always knew was a possibility as property values have improved over the years.

Besides reading forums on this site, one of the reasons I never wanted to do an official settlement package with the lender was that I made good money and did not want them to see my pay stubs. Here is the kicker for today: I am unemployed, with the last 7 months being rough financially, and I can claim a true hardship. Is it worth trying to get them to settle now? I would be willing to pull some money from retirement to make them go away.

What should I do? I have a renter with 2 years left on the lease. I break even on the 1st mortgage payment with the rent, but cannot afford the 2nd mortgage on the property.

The parent company Ophrys is just in Seattle, should I march my butt in there and try to talk to a decision maker?

Should I call the loss mitigation department at Land Safe Home Services? It seems that there is a specific person referenced in the letter, with an email address.

Any and all advice is appreciated.

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
San Diego, California
It sounds like it is possibly time for you to engage them to seek settlement. We've been seeing more often than not 2nd mortgages coming out of the woodworks and wanting to collect. The chances of you being able to collect for pennies on the dollar are slim because you have a significant amount of equity. In my honest opinion, the days of receiving cents on the dollar settlements are gone.

However, your negotiations could delay them from pursuing foreclosure - it could also make them expedite, you never know.

I am not speaking of experience with the people that you have mentioned and hope that someone chimes in that has. I'm not sure what your position is in regards to obtaining new employment but refinancing is an option as long as that lien has been charged off for longer than 4 years which it sounds like it has. I have been able to successfully refinance borrowers who not only have received settlement offers but also people that have paid the entire balance to avoid situations like you're encountering.

If there is anything I can do to help on the finance side of things, please don't hesitate to reach out. As long as you get a job and receive your first check before the first payment due date of the new loan and have history in the same line of work we may be able to make some magic happen.

Please continue to keep us updated with your progress and I'm sure others will come in and give some advice.
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