Nov 2019 RTR settlements accepted

mimiy

LoanSafe Member
Mar 14, 2012
26
0
1
Have not paid on HELOC since transferred to RTR in 2012. It is still underwater by around $25k on 1st. Needs between $25k-$50k in necessary repairs. Getting written estimates now. Have several coms right in our development that show before repairs and foreclosure or short-sake costs, home value is around $30k under LOWEST comp. all are from this year.

RTR has left us alone all this time doing nothing but sending monthly bills. Finally this month they sent a “legally required letter”by. Regular mail asking us to contact them to be evaluated for one of several settlement options (loan mod, temporarily reduced payments, short-sale, etc).

Due to health issues. I engaged a real estate attorney to try to work out a settlement with them. My offer will be 5%. although she thinks they will want st least 15% which we cannot fund.

She contacted them earlier this week and they had her upload the engagement letter from me giving her permission to act on our behalf. Yesterday I received a letter that they have charged off the loan But that loan owner could transfer to a new servicer or foreclose as debt and lien remain.

I told attorney that we need to stay shesd of RTR Reporting a charge off to the credit bureau‘s as this would ruin by borrowing ability which is the only way that I would be able to fund a cash settlement of even 5%. My credit is in the mid to upper 600s so that would likely killed my ability to get loads that I am already pre-qualified for from lenders who I have recently borrowed from and paid off with excellent payment histories. Because of by her off at my husbands, we really want to stay in our room as moving would be an overwhelming friendship and we do not have the out-of-pocket cost to fund moving costs of everything that goes with it.

We do not want to take a chapter 13 for other reasons.that the attorney agrees with although she is going to let them know we are eligible as the HELOC was purchase money and would not be collectible I. Our state on a Ch 13. We are current on our 1st and can afford that loan payment each month but nothing more than that.
So the attorney called RTR todsy to see if they would take the charge-off back and enter into settlement negotiations. She was told that as I have an attorney she has to work with their loss mitigation attorney who she briefly spoke with. The sttorney wants me to submit their loss mitigation paperwork to “determine what programs I am eligible for.” This does not expressly say that I will be to submit financials or disclose my bag but has a general statement that I agreed to provide income information and whatever they asked for. The advice I have read here in this forum is not to provide financial information but now that it is with their loss mitigation attorney, it does not sound like we will get anywhere if I refuse and if that is what they are referring to in the paperwork they are asking me to submit.

my questions are these:

1. Does anyone know if our TR has been excepting offers as low as 5% and reset bags in a situation where they will still get nothing for the
foreseeable future through a foreclosure or a short sale otherwise?

3. If not, what is the lowest that you have seen their loss mitigation department except it recent bags in situations like this? We know that they were excepting settlements like this to forgive debt and release Lynn when the market was severely under water nationwide. Note, again, that by load is still underwater as I have outlined above.

If not, what is the lowest that you have seen their loss mitigation department except in recent months in situations like this? We know that they were excepting settlements like this to forgive debt and release lead when the market was severely underwater nationwide. Note, again, that by load is still underwater as I have outlined above.

3. Any advice you could give me or insights regarding how to proceed from this point with RTR?

thank you!!
 

Jzone

LoanSafe Member
Jun 20, 2017
178
24
18
69
Have not paid on HELOC since transferred to RTR in 2012. It is still underwater by around $25k on 1st. Needs between $25k-$50k in necessary repairs. Getting written estimates now. Have several coms right in our development that show before repairs and foreclosure or short-sake costs, home value is around $30k under LOWEST comp. all are from this year.

RTR has left us alone all this time doing nothing but sending monthly bills. Finally this month they sent a “legally required letter”by. Regular mail asking us to contact them to be evaluated for one of several settlement options (loan mod, temporarily reduced payments, short-sale, etc).

Due to health issues. I engaged a real estate attorney to try to work out a settlement with them. My offer will be 5%. although she thinks they will want st least 15% which we cannot fund.

She contacted them earlier this week and they had her upload the engagement letter from me giving her permission to act on our behalf. Yesterday I received a letter that they have charged off the loan But that loan owner could transfer to a new servicer or foreclose as debt and lien remain.

I told attorney that we need to stay shesd of RTR Reporting a charge off to the credit bureau‘s as this would ruin by borrowing ability which is the only way that I would be able to fund a cash settlement of even 5%. My credit is in the mid to upper 600s so that would likely killed my ability to get loads that I am already pre-qualified for from lenders who I have recently borrowed from and paid off with excellent payment histories. Because of by her off at my husbands, we really want to stay in our room as moving would be an overwhelming friendship and we do not have the out-of-pocket cost to fund moving costs of everything that goes with it.

We do not want to take a chapter 13 for other reasons.that the attorney agrees with although she is going to let them know we are eligible as the HELOC was purchase money and would not be collectible I. Our state on a Ch 13. We are current on our 1st and can afford that loan payment each month but nothing more than that.
So the attorney called RTR todsy to see if they would take the charge-off back and enter into settlement negotiations. She was told that as I have an attorney she has to work with their loss mitigation attorney who she briefly spoke with. The sttorney wants me to submit their loss mitigation paperwork to “determine what programs I am eligible for.” This does not expressly say that I will be to submit financials or disclose my bag but has a general statement that I agreed to provide income information and whatever they asked for. The advice I have read here in this forum is not to provide financial information but now that it is with their loss mitigation attorney, it does not sound like we will get anywhere if I refuse and if that is what they are referring to in the paperwork they are asking me to submit.

my questions are these:

1. Does anyone know if our TR has been excepting offers as low as 5% and reset bags in a situation where they will still get nothing for the
foreseeable future through a foreclosure or a short sale otherwise?

3. If not, what is the lowest that you have seen their loss mitigation department except it recent bags in situations like this? We know that they were excepting settlements like this to forgive debt and release Lynn when the market was severely under water nationwide. Note, again, that by load is still underwater as I have outlined above.

If not, what is the lowest that you have seen their loss mitigation department except in recent months in situations like this? We know that they were excepting settlements like this to forgive debt and release lead when the market was severely underwater nationwide. Note, again, that by load is still underwater as I have outlined above.

3. Any advice you could give me or insights regarding how to proceed from this point with RTR?

thank you!!
RTR is a collection agency, so your HELOC must of been with a bank? You stopped paying in 2012 and then it was probably assigned to RTR?

5% settlements are very rare. Today its more like 20%-50%. Most home markets are rising and lien holders have no incentive to settle because your home will probably be worth more in a few months. This will change when housing prices start to fall.

If you are current on your 1st mortgage, I would not be concerned with your second mortgage starting a foreclosure proceeding. Find out the law in your state, but in most states a second mortgage must also pay off the first mortgage in order to foreclose. Very unlikely, but could happen depending on the balance of the first and second combined and the market value of your home.

At this point, it sounds like RTR has the lien and can also collect on the debt. Chapter 7 bankruptcy would wipe out the debt and leave them with just the lien.

I filed chapter 7 bankruptcy eight years ago. Had a 1st and 2nd mortgage. Both were discharged in bankruptcy. Have kept current on the 1st, but stopped paying on the 2nd. Because of bankruptcy, the 2nd cannot collect on the debt, but of course still has a lien. The first will not foreclose as long as I am current and the 2nd wont foreclose because they would have to pay off the 1st also.

There are some drawbacks to Chapter 7, but overall it has worked for me. I kept my house and got rid of the debt. I have no intention of selling anytime soon, but I know when I do, the 2nd lien will need to be settled. I make an offer about once a year at 20% of balance. Sometimes I hear back from them, but most of the time I dont even get a reply.