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Second mortgage settled for 10%, really???!?

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smilesdavis Joined: 14 Feb 2011 Posts: 2 1.57 Dollars($)	Posted: Mon Feb 14, 2011 12:18 pm    Post subject: Second mortgage settled for 10%, really???!? Like 0 Dislike 0 My second mortgage was charged off and sold to a collection agency, this morning the collection agency agreed to settle for 10%. This sounds too good to be true, of course...does this mean that there will not be any liens on my house, can they come after me for the rest of the $$ later, I am in disbelief...the total owed was $30000...my neighborhood has been hit hard by foreclosure and my first mortgage has already been modified and is in good standing...Any legit advice is welcome!
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Mon Feb 14, 2011 8:43 pm    Post subject: Like 0 Dislike 0 Hi smilesdavis! Welcome to forums! If the collection agency is ready to settle the account for 10%, ask them to give you a written document in that regard. Once you have the written document and pay off the settled debt, then the collection agency won't be able to come after you for the rest of the money. It will be forgiven. However, this forgiven amount will be considered as your income and you'll be liable for paying income tax on that. Feel free to ask if you've further queries. Sussane
smilesdavis Joined: 14 Feb 2011 Posts: 2 1.57 Dollars($)	Posted: Tue Feb 15, 2011 2:40 pm    Post subject: Like 0 Dislike 0 Hi Sussane and thanks for responding...well, i should've known it was too good to be true; when I didn't receive the letter today I called the CA and rcvd this answer: The 10% offer was submitted to the client and was rejected, they countered with $8000" ....mind you, the letters I rcvd originally offered settlement at 20% which was $6000... I am confused as to the whole "submitted to the client" phrase, if my 2nd has already been "charged off" than they've already written it off as a loss and it was sold to the CA, so I think their "client approval" lingo and such is really just a bunch of malarky...any suggestions?
jameshogg Joined: 20 Dec 2005 Posts: 10477 Location: Nevada 990.06 Dollars($)	Posted: Wed Feb 16, 2011 12:45 am    Post subject: Like 0 Dislike 0 Hi smilesdavis, You should now negotiate with the collection agency on your own in order to get an affordable payment plan to pay off the dues. You can even negotiate with them to settle the dues for 40% - 60%. Thanks

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