Trying not to be redundant, but my third mortgage was written off in a Chapter 7 bankruptcy in 2010. I could cease paying it, but I'd always owe the 15K amount when I went to sell, according to my lawyer. In 2016 I haven't heard anything in over 5 years. I subsequently received a letter from Real Time Resolutions stating that they had my third mortgage, but that I did not need to make a payment because it had been discharged- balance check $15K. Fast Forward to 2020, and I have chosen to sell my home. First mortgage is current, the second is paid off, and the third is with RTR with a $15K balance, so I thought. RTR provided me with a payoff note for $35k to give to the realtor. Miscellaneous expenses totaled almost $19,000. To cut a long story short, I agreed to the $35k because the attorney stated that getting them to court would take more than two years due to Covid backlog. The date is 08/02/2021. I haven't closed on the house that I had sold for the first time eight months ago. I'm on my fourth buyer, with three different title companies. RTR refuses to file an assignment with my county stating that they are the lien holder. The title firms will not simply send over $35k to a collection agency that is not be able to produce the lien. Nations' Lending, they argue, owns it. Nations Lending claims they have never heard of RTR. I cannot sell my house until the actual lien holder files an assignment with Real Property Records in my county. The original lien holder is GE Money Bank. They have been dis-solved. Is there anything anyone can help me with this problem. I will end up spending all of my equity in legal fees if this thing goes to trial. Thanks
I've dealt with this a few times when it comes to refinancing these liens. What we usually do is trail where it originally came from which it looks like you have done aka Nations Lending. Within the settlement agreement it should have a "Release of Claims by You" which is essentially them saying they will release the lien upon satisfaction which should clear your title and allow you to sell the home. What state are you in? I MAY have a title/closing company that's helped someone where you are located.
The loan amounts, 1st and 2nd (RTR then back to Chase), are listed somewhere in this forum but generally our home value was around 900k with the first around 550k (then current balance around 450k, which I'm not sure they knew?) and 2nd around 250k.
I'd recommend you read very carefully "Tom Eason's Strategy for Settling 2nds..." here on this website. It's old, yes. Home values have recovered, yes. But Tom's math from the lender or note holders perspective is the key. Generally, the 2nd lender has to assume (because they don't know!) your home is going to need some fix up $$ ($25k to $40k??). Their assumption is that if you can't afford to make the payments on your 2nd, you probably aren't installing new carpet, etc.. The lender also has to pay commissions to the realtors at least 5%, no matter what others have said. Add all that to your existing loans (1st and 2nd)- do you really have equity from the lenders perspective?
Apparently older forum entries have been pruned from this website. Can anyone please post the text of Tom Eason's Strategy for Settling Seconds? Thanks.
From my knowledge RTR doesn't entertain any settlement offers until the file is in active foreclosure status. I can't exactly recall if that was SLS or RTR that has that rule. I work very closely with RTR satisfying these liens and if you have 20% equity after paying off the 1st and the 2nd lien the likelihood to get them to settle is very little. I have been able to get them to waive attorney fee's associated on files with equity but that's about it.
If you have any questions please don't hesitate to ask, I refinance borrowers and pay off these liens all the time.