Trying to Settle 2nd with SLS

ramsey

LoanSafe Member
Mar 14, 2011
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RILLION...How is the battle going. Have you heard anything more from Specialized Loan Servicing?
 

Rillion

LoanSafe Member
Mar 21, 2012
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They continue to call me once every day (monday through saturday) and with one exception all the calls have gone to voice mail. In a moment of curiosity, I did answer the call last week. The random collection rep started into her script about how I had not made a payment since February and I now owed ~$3k when I cut her off and asked if she was authorized to negotiate a settlement because if she wasn’t she was just wasting both of our time. Her reply was that they did not negotiate settlements over the phone and that if I wanted to make an offer to settle I had to complete submit all the paperwork they require for a settlement. I informed her that I had looked over the list of items they wanted with the settlement offer and that I would not be doing their work for them. I said that when they were serious about settling the note they could send me an offer. Then I said thank you and hung up. So basically it was a waste of my time because I’ve continued to get the same automated call every day since then.

So lesson learned, I won't be picking up again. As an FYI, the items they require to consider settling (or selling me the note):

1. Written Request with offer price and date of funding, if approved.
2. A copy of the most recent appraisal or valuation of theproperty to substantiate the offer price.
3. Name and number of someone that will give SLS access to the property to perform an interior assessment and evaluation.
4. Payoff quote on the 1st Mortgage (and any other senior lien holders)
5. A copy of a recent title search which includes all current lien holders
6. Any other documents or information to substantiate the offer.

Also says they will not even review an offer until all the above items have been received. So basically they want me to do all their due diligence work for them.

PS - Also I got my annual notice of assessment from the county and they have upped the value of my condo from $370k to $380k. Since my 1st mortgage is for $388k, I still have plenty of time before I am no longer underwater on the 2nd.
 
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Rillion

LoanSafe Member
Mar 21, 2012
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Well I've hit the 6 months past due point. They still sent out a statement but the daily call has stopped. Haven't gotten a call from SLS since 9/25 (9/20 was the six month past due date). I sort of miss the daily ritual of rejecting their call on my cell phone and then telling my coworker "That was my stalker calling again."
 
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TomEason

LoanSafe Guide
Jun 18, 2009
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SF Bay Area CA
Rillion

Thanks for your post.

I hope you don't rely on the county tax assessor's valuation of your home. Those valuations are invariably inaccurate (usually on the high side in order to justify higher property tax on the parcel).
 

Rillion

LoanSafe Member
Mar 21, 2012
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I don't rely on it but in this case it is probably pretty close. Last comparable unit in our complex sold in early 2011 for $375,000. When I first requested a review of the valuation back in 2009 I argued for a $375k valuation then. When they finally looked at my request for a review they came back and gave me $370k valuation (lowering it from $505k). They have held it steady at $370k since then until upping it to $380k as of 1/1/2012. I'm fine with that for property tax purposes since at most I could argue for about the $375k level as prices in this neighborhood have held steady over the last year and that would save me just $50. Regardless, the property is still below the value of the 1st mortgage, so I'm not worried the value climbing to the point where the 2nd will foreclose and if that does start to happen I will just stop paying on the first and let them take the place. Already discussed with the spouse where we would move if it comes to that.
 

ramsey

LoanSafe Member
Mar 14, 2011
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Rillion...

We have not made a payment on out second since February 2011. We have not had a phone call from Specialized Loan Servicing in over 6 months. We still get the normal "statement" almost every month. And this last month we received a standard letter of " we have been trying to get a hold of you with no response" letter. They have send us a couple of "offers" to which we have mailed them counters but have never heard anything back from them on these offers. My husband had just lost his job and we did send them an email letting them know that and that know there is now way in the forseeable future we will be able to catch this up. We have not heard anything more back from them. I guess they should have taken our counter offer ...they would have at least gotten something.
 

triguy

LoanSafe Member
Dec 26, 2012
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I first got my home in April 2006 via two subprime I/O loans (80/20) thru Citywide Mortgage and GMAC (HELOC). The loans were sold off a few times ending with ultimately Bank of America servicing the first note from Countrywide mortgage and SLS.net servicing the HELOC.

Original balances (interest only):
1st mortgage = $333,000 BoA
HELOC = $62,430 SLS.net

My tax assessment for 2012 for my home was $228k and given my loans added up to $395k, I was obviously upside down and unable to refi or get a better loan. My home, at best, would probably short-sell for $240k, but my main intent was to keep my home and get a loan mod with BoA and (hopefully) settle the SLS.net HELOC.

So in the beginning of this year, I stopped paying both loans in February 2012. I claimed financial hardship with BoA and SLS.net. I applied for a loan mod with BoA and told SLS.net I was not interested in a loan mod of any sort (they will require you to download their forms)...I kept in touch with BoA for purposes of getting a loan mod. However, with SLS.net, I basically ignored all calls and letters and a loan mod offer from them. I missed a total of 11 payments this year for SLS.net.

I missed a total of 5 payments with BoA, and finally in September, BoA offered me a 3mo trial period to qualify for loan modification. I was required and was able to make the 3 payments for oct/nov/dec and just last week, I was given a new loan agreement for the $333k first loan = $98k principal forebearance for 24 years, and new loan made on the remainder starting at 2 percent APR; ; and increasing slightly on an annual basis. At end of 24 years, I will have one balloon payment of $222k which I will have to payoff or refi at that time.

After I got that, I finally called SLS.net (i know these discussion boards say not to call, but it worked for my case). My loan after 6months went to charge off, so my account was sent to their Recovery department. I explained my hardship situation and given that I live in a recourse state, I let SLS.net know that I was not intending to NOT pay them at all - I offered a cash settlement to close out the loan in 2012 and release the lien on my home. All I did was give a verbal offer and the phone rep placed me on hold (to speak to a manager). Within 2min, they counteroffered me $500 higher, and I was able to settle my SLS.net HELOC for $0.12/dollar!!! Not bad for just ONE phone call after over 10 months!!! I paid via check on the phone ($9.95 charge) and I will be issued a 2012 1099-C for the unpaid amount. I will NOT OWE the income tax on this via the "The Mortgage Debt Relief Act of 2007" since the HELOC was originated solely to obtain the home initially. I had good timing as there IS NO GUARANTEE that this bill will be extended to the end of 2013 as this has been pushed to the side because of the Fiscal Cliff conflict in congress.

So in the end, I got to keep my home with one modified 1st loan NO more HELOC! The money I saved from not paying BoA for 5 months and SLS.net for 11 months was more than enough to cover my settlement check to SLS.net to eliminate my HELOC. Hope you all have just as good outcomes with your underwater loans! My guess is that I lucked out because SLS.net was the servicer for my loan, but Wells Fargo was the actual note holder. WF was one of the big 5 banks named on the $25B mortgage relief settlement - Probably why it was pretty easy to eliminate my HELOC... GOOD LUCK with your loan reductions and HAPPY NEW YEAR to you all!

cheers
 
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Rillion

LoanSafe Member
Mar 21, 2012
72
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Congratulations on settling the 2nd.

Perhaps if/when the Mortgage Debt Relief Act gets extended I'll see if SLS is willing to settle. If it doesn't get extended I'll figure out a way to deal with that issue. As of now, SLS continues to not call me and only send a monthly statement where they keep adding on an 11.50 "property inspection fee" in addition to late charges. While the market in my area is doing really well, my neighborhood isn't sharing equally in the gains so I am likely just about breakeven on the 1st with the 2nd still totally underwater.
 

triguy

LoanSafe Member
Dec 26, 2012
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good news...Congress extended the Mortgage Debt Forgiveness Act of 2007 another year (to end of 2013)!!! Good luck with your SLS settlements! To anyone interested, I spoked to a Rep at SLS.net Recovery Department named Suzan to get my settlement.

happy new year!
 

Rillion

LoanSafe Member
Mar 21, 2012
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8
good news...Congress extended the Mortgage Debt Forgiveness Act of 2007 another year (to end of 2013)!!! Good luck with your SLS settlements! To anyone interested, I spoked to a Rep at SLS.net Recovery Department named Suzan to get my settlement.

happy new year!
How did you get to the recovery department? I called again and spoke with the generic cs rep of the moment and he would do nothing but tell me that I needed to send them all my financials, paystubs, account statements, etc for them to do anything. I told them that I would not be providing that information but would be willing to negotiate a settlement. At that point we got to the usual catch-22, they won't do a settlement without that info and I won't provide that info.
 

triguy

LoanSafe Member
Dec 26, 2012
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1
Rillion:

First, your loan has to be in default and basically charged off in order to be turned over to the recovery department. Normally an acct is charged off if the last verified payment was over 6 months ago. Assuming this is the case, if you go on www.sls.net website and login, the telephone number for recovery department should show up. I have this as 1-800-268-9706.

Just say you are going thru financial hardship, but you want to make a lump sum offer to settle and mark the account as "settled in full". When I did this Suzan just told me to tell her a $number and she put me on hold for 2 min and came back with counter offer. My initial offer was about 11cents/dollar; settlement and they came back with 12percent settlement. Assuming that SLS.net is the servicer for your loan (which is hopefully backed by one of the big 5 named in settlement = citi, chase, WF, BoA, Ally), maybe you should start your offer in the 7-10percent range to see what they say.

Assuming that this 2nd note/HELOC was originated for purposes ONLY to obtain the property (not added later as a line of credit for purposes OTHER than getting the home), you should be good to go with ZERO 1099 tax obligations on the forgiven amount.

good luck!
 

Rillion

LoanSafe Member
Mar 21, 2012
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Yeah it was charged off back in October 2012. I haven't made a payment since February of 2012. Unfortunately it isn't owned by the big boys that are part of the settlement but some small bank in Georgia. It is a non-recourse loan as it was taken out during the original purchase of the home so no worries there. I'll give it a bit then try calling the recovery department directly as the people answering the main number are useless.
 

ramsey

LoanSafe Member
Mar 14, 2011
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I just went and checked our account online and I noticed that the 800-268-9706 number was listed in the "offers" portion (and none are currently available) :bigsmile: Maybe in the next couple weeks if we don't hear anything from them we can give a call and make an offer. It is 2 yrs this month that we made our last payment to them. I did notice that they have listed that our modification paperwork was sent back incomplete! We sent them back a counter offer so it was as complete as it is going to get! We would just like to move on from this and move forward.
 

triguy

LoanSafe Member
Dec 26, 2012
8
0
1
it might help if you can find out who is holding the note...and I'm not talking about the "show me the note strategy". It would help to know if one of the big5 lenders hold the note on your 2nd w/ SLS (Citi, Chase, BoA, WF, Ally), because then you have some bargaining power as these banks should be able to get you a good settlement percentage of 10percent or so.


Then, I would ask to speak someone directly at the Recovery Department as I did to make a verbal offer to get your official offer/counter offer drafted up and faxed back to you. Stress to them you are not interested in ANY kind of mod - you just want a lump sum settlement to close out the 2nd note and get a lien release.
 

ramsey

LoanSafe Member
Mar 14, 2011
70
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I found out that US Bank is listed as the "Trustee" and Specialized Loan Servicing is servicing the loan. So does that mean US Bank is lender?
 

ramsey

LoanSafe Member
Mar 14, 2011
70
0
6
Rillion,

Anything new going on with you and SLS. They have just started the calls again after months of hearing nothing. They have called 3 times in the last week and just leave a message that they need me to return their call. I am considering just re-mailing them the last counter offer we gave them on the paperwork they sent us over 1 year ago. I really do not want to talk to them as I would hate to get tangled up and make a mistake in how much information I give them :)
 

Rillion

LoanSafe Member
Mar 21, 2012
72
7
8
Rillion,

Anything new going on with you and SLS. They have just started the calls again after months of hearing nothing. They have called 3 times in the last week and just leave a message that they need me to return their call. I am considering just re-mailing them the last counter offer we gave them on the paperwork they sent us over 1 year ago. I really do not want to talk to them as I would hate to get tangled up and make a mistake in how much information I give them :)
Like you, they started calling me every day again. I finally picked up once to see if their position had changed. We are basically at the point where I've let them know I am willing to negotiate a settlement but they said they won't do that without me submitting all my financial information, which I told them isn't going to happen. The cs rep basically told me that they would keep calling and we would keep having the same conversation that goes no where and if I didn't want to keep doing that I should submit a cease and desist letter to save me the aggravation of the calls. I laughed and told the cs rep that the calls don't bother me, its not costing me anything to send 99% of them to voice mail. From what they told me, their system is set up to call every day until a rep talks to me that week. Once they talk to me that week the system stops calling until the next week. This month will be one year since I last paid them anything.
 

ramsey

LoanSafe Member
Mar 14, 2011
70
0
6
We have not paid them anything for 2 years this month. The person making the recent calls is different in the past ... this time it is a female and she seems a bit testier that I will not call back :) I have no plans of talking to them. We are considering resending the in-house modification they sent us over 1 year ago. We made some changes to it so it would be something we could handle payment wise and they never responded one way or another to it. They do have it listed in our account information on line that our paperwork they sent us was returned incomplete. We are at a point that we just want to get this over with and move on with our lives.
 

Preparingfordefault

LoanSafe Member
Apr 17, 2011
293
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18
Does anyone have SLS as servicer with Morgan Stanley as Investor? I really feel that I have misinformation as it seems NOBODY here has Morgan Stanley but me? How is that possible? My loan started as Countrywide then one other and Saxon, and now MS/SLS. I really do want to settle but would like to see others experience. So far SLS calls continue to be a nuisance and not productive at all ... I have asked about settling several times over the last 8 or so months and they tell ME to make an offer, want financials etc.... when I suggest settling at 2% the conversation pretty much ends with a no, they don't even counter though one guy said that Morgan Stanley allows 25% (PULEASE!). They have not sent any type of settlement offer by mail, press me to hard for info so I stopped answering. I'm losing track of when I last paid but it was about 20 months ago.