Trying to Settle 2nd with SLS

UnderwaterBlues

LoanSafe Member
Aug 13, 2011
47
8
8
Washington
True words of thought and logic BigFrog. That would be my main concern as well.if I tried to settle or work anything out with them now and housing market declines, trade war affects business profits laying off workforce to maintain shareholder profits and other similar impact scenarios then we may both be in the same boat again which is what started this whole thing in the first place. I’d like to get the monkey off my back but at same time if I gave them all I have and end up in same boat in a down cycle market decline with no emergency funds whatsoever then I’m in worse shape.
There is no real window of promise in this situation sadly.
 

bigfrog

LoanSafe Member
Aug 31, 2011
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I received a letter from SLS earlier in the year.. stating that the investor changed.. Forgot who they were.. some Trust.. But they, SLS is still the servicer. Last, I spoke with them, they made it sounded like they were going to foreclose. More than a month now. Either they chickened out, or need more time. I'll probably call them next week and play one of those rap music with lots of F-words in the background.
 

Wisconsin guy

LoanSafe Member
Dec 3, 2009
116
10
18
Great White North
I was working with Statebridge about a settlement, sent some docs (no financials) and decided to call to follow up.
Really nice people, no attitudes, etc. but very unorganized. I can't get an answer about a settlement however I was told that my loan is being sold again to FCI Loan Servicing. WTF...
 

OneHugeMess

LoanSafe Member
May 30, 2016
473
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I would be very careful with FCI. I briefly took a look at their website, and it looks like all they do is default & foreclosure servicing. Just thread lightly.
 

Wisconsin guy

LoanSafe Member
Dec 3, 2009
116
10
18
Great White North
I would be very careful with FCI. I briefly took a look at their website, and it looks like all they do is default & foreclosure servicing. Just thread lightly.
They have a Schedule of Fee's section on their website that lists a ton of things, one being Settlement, not sure what's going to happen but find it strange that Statebridge would give up my loan so quickly...
 

walkinginCLT

LoanSafe Member
Aug 31, 2011
17
0
1
This is my situation.

1st Mortgage (rushmore servicing, no idea owner) $145,000
2nd Mortgage ( SLS Servincing, Deutsche Owned) $ 39,000 (original principal)
Zillow says worth $247,000

1st mortgage is spotless. Haven't paid second in over 8 or 9 years. I couldn't tell you exactly because it has fallen off of our reports entirely. No record anywhere on any bureau. We have purchased a new home in our new state and keep this home as rental property because when we moved it was underwater and we could not sell. Now, obviously, I'd like to settle this second. They (SLS) call once every 6 weeks or so. Refuse to talk settlement without financials, etc. They send statements occasionally (been quite a few months) that show the amount now is in the $70k dollar range. Back in 2016 they sent an offer out of the blue to settle for $12k, did not have anywhere near that available to settle then so it was a no go.

I'm interested in settling. Not interested in providing any documents whatsoever. I would be able to settle right this second for 50% or more of original principal but doubt they are going to accept that. Can't see them being willing to foreclose right now as there would be significant costs to get the zillow amount: 2 HVAC units that are 15 years old, carpet that is 15 years old, laminate flooring that is 10 years old, Roof that is 15 years old, and some holes in siding from hail.

I can threaten with BK but would definitely prefer not to go down that road. This last call they mentioned foreclosure, but I'm not super scared about it. Been a nice rental property - we cashflow about $600 a month or so. Never had a single late tenant. But if they foreclosed I wouldn't lose too much sleep. Much more concerned with my credit. Back up to the 800 range. 1st is spotless. Second, like I said doesn't appear. If they do in fact foreclose, will this cause it to re-appear as a negative out of the blue?

Again, I'd like to keep it, maybe would even go as high as 100% of original principal. But not paying them a dime in late fees or accrued interest. Not after refusing to work with us when we did a modification on the 1st a decade ago.
 

walkinginCLT

LoanSafe Member
Aug 31, 2011
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1
They are taking a hard line on this. They are unwilling to send my settlement offer of $10k (on 30kish principal and 6ish total with interest) to the next department. They are threatening foreclosure.

They want me to send in 1st mortgage payoff information or they refuse to send the offer to the department that handles it. I don't want to do this as the first is $145ish on a $245k zillow value. Should I hold out on sending them this info? What do I gain by not sending it?

Is there any way to offer my settlement to Deutsche Bank directly and bypass SLS?
 

just_me

LoanSafe Member
Sep 14, 2015
508
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They are taking a hard line on this. They are unwilling to send my settlement offer of $10k (on 30kish principal and 6ish total with interest) to the next department. They are threatening foreclosure.

They want me to send in 1st mortgage payoff information or they refuse to send the offer to the department that handles it. I don't want to do this as the first is $145ish on a $245k zillow value. Should I hold out on sending them this info? What do I gain by not sending it?

Is there any way to offer my settlement to Deutsche Bank directly and bypass SLS?
Why send the info? I wouldn't. You have everything to lose by informing them there is equity. Let them do their own research. (which eventually they will) Send info to legal department certified mail (or appropriate correspondence address off back of billing statement) and send a settlement offer that way. I wouldn't condition any 2nd payoff negotiation based on financial disclosures either. It's too risky. Skip those call reps if they don't tell you what department to contact.

Put a 30 day response deadline in your offer or it expires.
 

walkinginCLT

LoanSafe Member
Aug 31, 2011
17
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1
Why are they asking me for it? They can pull my credit and the current balance due is the exact balance listed on the credit report. They can pull my credit as an AR correct? Why does it matter to them that I send a statement, that they want it so bad and refuse to send my offer up the chain without it?
 

just_me

LoanSafe Member
Sep 14, 2015
508
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You're right. Maybe they're trying to push you into refi instead. (bait-switch) That's something you might have to send for a different type of application. Also sounds like the 2nd doesn't have permission to access account information on your 1st (which is good thing).
 

bgriff

LoanSafe Member
Mar 11, 2012
163
16
18
I would be very careful here, the 2nd is in the money and has everything to gain by foreclosure (based on the #'s you provided).
 

walkinginCLT

LoanSafe Member
Aug 31, 2011
17
0
1
But they are not really willing to discuss anything. I'm curious what my best path is? Give the 1st payoff and the financial docs they are requesting? They will show that I could pay the second if I wanted. Short of paying off the second which currently they are unwilling to budge from full principal and accrued interest. At that, they can go through the effort of foreclosure. I'll go to the sale and bid them higher on my second.
 

Wisconsin guy

LoanSafe Member
Dec 3, 2009
116
10
18
Great White North
I would be very careful here, the 2nd is in the money and has everything to gain by foreclosure (based on the #'s you provided).
True, but Zillow's numbers aren't always accurate. A house only sells for what someone is willing to pay, some in my area have Zillow Zestimates $75-100K higher than what they sell at. Curious if anyone knows how the SLS's, FCI's, etc. get their baseline values from?
 

bigfrog

LoanSafe Member
Aug 31, 2011
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SLS is tricky.. They have contacts, and they have information about your mortgages. And possible financial information. But why do they still ask for it? and want you to send it in? Because they are looking for discrepancies and mistakes. Probably use it in court, and get whatever they want after that.
 

walkinginCLT

LoanSafe Member
Aug 31, 2011
17
0
1
So is there any reason not to send them the statement showing my balance? I will obviously black out my loan number but any reason that this would hurt me further? I just want them to negotiate something. I cant imagine they wont come off the full balance not even a dollar. But if so, i will make their lawyers earn their fees. Filing motions on everything they do.
 

walkinginCLT

LoanSafe Member
Aug 31, 2011
17
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A question. This second is almost 10 years late. However it doesnt show on credit report at all. Will I be able to refinance the 1st and offer them a larger settlement from this? Obviously would be waiting to do the refi until I get a written approval from them and do a kind of refi, short sale.
 

just_me

LoanSafe Member
Sep 14, 2015
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Do you intend to refinance your first? or is this an option simply for negotiations? You need to consider the SOL on collection on 2nd. If they are beyond SOL, then that is your defense to foreclosure. (albeit the judge will not be happy but must follow law) I didn't see whethor or not you had that timing. This is State dependent. Some are as low as 6 and some are as high as 20.
In other words, they have to file FC within that time. Also, judicial vs non-judicial. I am in judicial state, so a bit protected from such action without being legally noticed.
 

walkinginCLT

LoanSafe Member
Aug 31, 2011
17
0
1
Well they have not accelerated thendebr as far as I know so hasn't the SOL not started? The house is in NC but I live in Florida currently

I wasn't planning on refinancing but could to get the principal amount to settle second.
 

Jzone

LoanSafe Member
Jun 20, 2017
158
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Do you intend to refinance your first? or is this an option simply for negotiations? You need to consider the SOL on collection on 2nd. If they are beyond SOL, then that is your defense to foreclosure. (albeit the judge will not be happy but must follow law) I didn't see whethor or not you had that timing. This is State dependent. Some are as low as 6 and some are as high as 20.
In other words, they have to file FC within that time. Also, judicial vs non-judicial. I am in judicial state, so a bit protected from such action without being legally noticed.
Yes, check your state law for statue of limitations on liens. Im in Michigan and have a second mortgage/lien that was discharged in Chapter 7. However, Citibank assigned the lien to a debt collector. They cant collect on the debt, but are the lien holder. In Michigan, there is no time limit for liens on real property. In other words, they can wait it out forever...or until I sell.

The one positive thing in my case, is that it is a second and not a first mortgage. Yes, they could foreclose, but unlikely since they would also have to pay off the first mortgage. This has been going on since 2012. I hear from them about once a year and make my usual 10% settlement offer.
 
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