Trying to Settle 2nd with SLS

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
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48
SF Bay Area CA
Preparingfordefault

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.
Thanks for your post. More important than finding another member who has Morgan Stanley is this. First, no one here can offer you any advice without knowing your state, your numbers, and whether your 2nd is purchase money. Second. If it were me, I would not be communicating with SLS and making offers. For guidance, I recommend you view the settlement guide at post #1 of the following thread. http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd-94.html
 

Preparingfordefault

LoanSafe Member
Apr 17, 2011
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I'm in NJ, and my second is 100 percent under water, first is likely roughly $50-$60k underwater but got the DOJ mod, payment reduced significantly and I've been paying the first on time for many months now... Here's my SLS 2nd (Morgan Stanley investor) update- (stopped paying nearly two years ago)- they are back to calling weekly, I have not spoken with them since Dec or Jan. when I randomly decided to pick up the phone to see what they had to say and sorry I spoke with them when I did because calls picked up. Out of nowhere I FINALLY received a settlement offer of roughly 35 percent by regular mail. I don't have the money to start negotiating from 35 percent but am glad to see they finally started down the settlement path (Tom always said they would) and hopeful that with time they will come down in their offer. I have to say that I am really sick of this hanging open out there and sign in here from time to time just to see if anyone got an extinguishment letter from SLS (Morgan Stanley)... so far nada... but there's still hope.
 

Preparingfordefault

LoanSafe Member
Apr 17, 2011
293
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One question if I may.. Does anyone know if there are any benefits at all to Morgan Stanley if they extinguish loans? I know they are not part of the DOJ settlement but they had their own lawsuit and judgement recently and I'm just not savvy enough to understand if they would get any money to extinguish seconds. That said in watching the board it seems to me like the extinguishments comes in waves... first BofA, then it was Chase and now Citi..... and they seem to all come in (based on the successes that I've seen here) within weeks of each other. I realize that we on this board are only a small portion of the population but interesting to see what appears to be a pattern.
 

Rillion

LoanSafe Member
Mar 21, 2012
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So finally had a marginally productive talk with someone at SLS. Seems the recovery department finally got my loan. After spending about fifteen minutes going in circles with the recovery agent, he transferred me to his supervisor. The main sticking point was that the recovery agent was telling me that would not do anything without full financials (financial worksheet, two years tax returns, copies of pay stubs, etc) and I was very firm that I would not be providing those and if they would not consider any settlement offer without those items, then why should I bother sending them anything. Then the rep would say fine we will just note that you aren't willing to do anything about this loan. I would then say that's not true, I am willing to settle the loan, I just won't give them irrelevant information. Finally after having this same conversation with the supervisor, he agreed that they would at consider an offer if I submitted it with what information I felt was relevant (value of the house, balance due on 1st mortgage, the fact that in 2017 I'm likely to walk away and their investor would get zero).

So who knows, maybe this will lead to something, but I doubt it. Still expecting to stop paying on the 1st when it recasts and the i/o periond ends in 2017.
 

bigfrog

LoanSafe Member
Aug 31, 2011
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Hey Rillion any respond from SLS yet? I recently defaulted on my 2nd with SLS like you guys. In CA, house went more than half way underwater. Because of unforeseen circumstances, I barely can make interest only payments. But with property tax and expenses, cant make ends. It is conflicting to tell them, you cant pay your monthly payments of $300 a month but you are willing to settle at 12percents. Probably one of the questions they will be asking or thinking.

Basically, I want to able to tell them.. hey, I saved up $x from not paying you. And I know down the line, the payments will increase and more tragics. To avoid future problems, I want to settle with a 10%-12% lump sum to clear the note, at the same take advantage of the Forgiveness Act before it expires at the end 2013.
 
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bigfrog

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Aug 31, 2011
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Thats what I hope for. But if the forgiveness act expires, I'll continue defaulting. I have no money to pay them or the 1099-c.
 

bigfrog

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Aug 31, 2011
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Anyone??

I just got a respond from SLS.. Notice of Default and Intend to Foreclose.. This is great.. I dont know if they want to persue foreclosure, they'll sure have to eat up a huge loss, but only time will tell.
 

bigfrog

LoanSafe Member
Aug 31, 2011
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Thanks gb_mh...

I wonder how Rillion is doing with SLS.. he started the thread and seemed to struggle with them the longest. Its nice to hear that some of the folks here was able to settle with SLS. I hope I get such opportunity.
 

bigfrog

LoanSafe Member
Aug 31, 2011
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3months

Wooohooo.. 3 months already.. SLS kept calling. Last friday, they sent some rep to knock on our door and stood there for like 20-30mins. It wasnt like we are going to answer. But today, I finally answered their call. Told them I wanted to speak to someone who is authorized to settle. The rep said, settle what? After telling me all the fees they've added on to my miss payments. Told him, that I couldnt pay, but I want to settle. he asked settle what, like he never heard of the term. Then I explained that I want to do a Short Pay Settlement, thats when he was like oh oh..

Then started asking how come I am not paying or cant pay. I told him that because of unforeseen circumstance, financially, I cant pay. Then he asked if I am claiming hardship. I said yes.

He started to ask more questions; why I am claiming hardship, is this long-short term. I said that he is working and he has to understand that at some point they aren't going to give him a raise, and I am at that point and can't afford. I told him that I need to speak to someone who can help me. I want to settle for the note. I know he is just collecting data and can't help much. He kept saying that he can help. Not sure how, and said he'll refer me to his loss mitigation department. Which just telling me he can't help. Right when he transfered me, I hung up. Wonder what they'll do next.

Next time, I am just going to ask, can you settle for the release of the note.. if yes, then we can speak. else I am just going to hang up.


Any opinion on my actions or actions I should have taken would be great.. Thanks
 

bigfrog

LoanSafe Member
Aug 31, 2011
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I guess I am starting late. It appears that I am right where Rillion and the veterans were. SLS is still calling me twice a day from Mon thru Sat. I told them that they are welcome to call me. I wouldnt be picking up though. Told them can't pay, but willing to negociate a settlement. I am in my 4th month of default. I logged on SLS website, and saw that they had an offers selection. Clicked on it, and magically, they had all my info, how much I make, and what my expenses were. I am sure they can run credit reports, background checks, know how much my property is worth, access to banking info..etc, Appears like no point for them to ask documents, in order to proceed. Probably too early for settlement offers, well, I am in no rush. Strategy for Settling Your 2nd is awesome, only if I knew it before. Thanks TomEason. Everyone should be aware of this. Its time people fight back. They knew... but why they still chose to be a 2nd, and leached what they can? Greed at its best.

I'll keep you guys posted, with new info.
 
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bigfrog

LoanSafe Member
Aug 31, 2011
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updates

SLS is sending people to put little notes on my door asking me to call them. They even sent me another bill asking to pay, like nothing has happened. They still call twice a day. I am not bother by calls. If anything, they are making feel more important. The other day, if they didnt call, I would have woke up late for work. Using them as a wake up call service.

I was reading an artical regarding lenders were sending contractors to change locks on doors, at the same these contractors were damaging the house and borrowers possesions. I dont see how this would solve anything or reduce loses. Probably get a little bloody if the contractors intrude a house with angry people.

They are responding to and taking actions. They know feasibly they can't take the home, so they just doing random things that they know they can to scare the borrowers. Scare them enough, to get them to pay.

The other thing I notice that is something fishy with Zillow. They increased home values all by 100k. Not like increasing home with zillow will force borrowers to pay. I guess no one can really know the actual value until sold, but randomly increasing values is something very strange.

I am sure SLS and other lenders probably have access to this site and other sites. Reading what people are doing and thinking. Its a mind game.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
bigfrog

Thanks for your post. IMO, you give way too much credit to the lenders (or you're being a bit paranoid, LOL). It's highly doubtful the lenders would devote their limited resources in having employees read forums and blogs.

FYI, most lenders contract with messenger outfits who do things like drive-bys, inspections, etc. When a messenger knocks on the door and an occupant answers, the messenger hands the note to the occupant. The delivery of the message is simply a phony justification for their having made the visit.

And when no occupant comes to the door they leave the note on the door, as you've discovered.
 

bigfrog

LoanSafe Member
Aug 31, 2011
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TomEason.. thanks for info.

They finally slowing down on the calls. Just once a week now. I told them they are welcome to spam me with calls. not sure why they slowing down. The other day they used another number to call, it was a 720-348-2040. Some says it GMAC. I thought GMAC went BK.. these lenders/servicers are all in the same boat. probably all the same people..

lets see how long they can keep up with me. this is great, they keep asking but me not saying anyting.
 

Preparingfordefault

LoanSafe Member
Apr 17, 2011
293
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18
Can someone please point me to a sample settlement letter for an underwater second? I want to make an offer to SLS- I was given only a generic email for recovery to send it to from the collector that calls. Does anyone have a good contact at SLS that can make decisions? My collector keeps saying not going to share offer with my investor without financials and I'm not giving financials but want this behind me once and for all so I want something in writing.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
Preparingfordefault

Thanks for your post.

Reference finding SLS contacts, can you say "Google"?

I have no idea what your proposed settlement letter would look like, as I've never personally penned one. Perhaps another member will chime in.

Although your strategy isn't recommended, you've obviously decided to pursue it. You'll do whatever you deem best for you.

Good luck.
 

Preparingfordefault

LoanSafe Member
Apr 17, 2011
293
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18
Tom,

I can Google but was hoping someone here would have a contact that perhaps they've had success with - no different than the BofA contacts listed all over that board Tom. My strategy is based on your advice - My first mortgage was DOJ mod. a year ago and the second needs to be wrapped up as home values are rising and at some point my second will no longer be under water. It's nearly 2.5 years since a payment was made and the only settlement offer that I've received was for something like 35 percent of the loan over 6 months ago (ridiculous) with zero follow up offers. You told me not to talk to them the last time I mentioned that I picked up the phone to try to start the process and you told me to only put offers in writing which is my next step. I'm really starting to believe that you don't like me. I've learned a great amount from this board and shared what I've learned along the way over this very long haul. I want to restore my credit, I want my credit cards to stop riding me down every time I pay a respectable amount off. I want my life long good credit to re-build again and until this pesky 2nd is taken care of and behind me my credit score will remain affected. I've prayed for one of those happy letters telling me that the mortgage is paid in full but it just hasn't come and likely never will. I want to move on as Many have also stated that successfully settled their seconds with Kudos from you.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
Hi Preparingfordefault

Thanks for your post.

I'm sorry you may have gotten the impression that I don't like you. That’s not at all true, and believe me; I didn’t mean to pick on you. I realize one of my (many) a fault is lack of tact; I do apologize.

Since you believe your 2nd will soon be clearly in the money because of appreciating prices in your market and, as a result, you feel the need to settle soon, you might visit this thread for more ideas.

http://www.loansafe.org/forum/debt-settlement/41196-settling-money-2nds.html

You’ll need to be more proactive in your settlement strategy. If, and when, your 2[SUP]nd[/SUP] is clearly in the money, you’ll have less, if any, leverage in settlement negotiations. And you should expect to pay more $$ to get your lender to agree to settle.

Good luck to you.