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2nd mortgage charge off settlement

Posted on: 21st May, 2009 12:38 pm
2nd mortgage is wanting to settle for 38,000. I am having a hard time understanding this decision on their part. What bothers me is the fact that they charged off the loan when we have upheld our end of the bargain....Pretty much, we sent them over $15000 in the last 8 months and brought everything current in February and have been making normal payments since and on time....according to the re-payment agreement we had with them. now they are wanting to settle for 38, 000 and agree that it would be considered a settled/paid charge off...what I am having a hard time with is the fact if they were planing on doing this from the get go, why did we have to jump through all the "hoops" just to end up shafted in the long run....If they were going to "charge off" the loan anyway....seems to me that if that was their intention why would they keep taking payments from us unless it was to put the screws to us. Basically by my calculations of past money we have sent and what they want to settle for, is more than what we took the loan out for.......It just doesn't seem fair....Is there a way to get them to lower their settlement offer? Which brings me to my next question, I can't give them $38,000 all at once, so if i settle with them and make payments, is the payments i send them taken off the 38,000 or is it taken off the much inflated price of the loan when they added "charge off" fees.....which raised the amount of what we owe to them by $10,000?
Hi dblmll,

If you have been making the payments regularly on time according to the re-payment agreement, your lender should not have charged off the loan. But as the loan has been charged off, you can now try to settle the debt for a certain amount that you are comfortable with paying. You can definitely negotiate with the lender to lower their settlement offer. If you cannot pay the money at once, they will probably set up a trust account where you can make the payments on a regular basis. If there are any charge off fees, that will be included in the amount you pay.
Posted on: 21st May, 2009 10:05 pm
Hi,

I have a 2nd mortgage that used to be with BofA, but now turned to a third party. Currently, I am negotiating with them for a modification of the loan and possibly a settlement amount also. My question is: what is the lowest possible settlement percentage if the holder is not a charge-off account?
Posted on: 18th Sep, 2009 01:18 pm
To n.tom,

There's no such lowest possible settlement percentage. How much you can settle the debts for depends entirely on your lender and your negotiation capabilities. What other lenders accept as settlement money, may not be enough for your lender and vice versa. Thus, it is hard to say what would be the lowest possible settlement percentage in your situation.
Posted on: 21st Sep, 2009 06:08 am
i stop paying my 2nd morgage around may of 2009. i recently got a letter from a law firm also know as debt collector. my question they offer to settle my 42,000 loan for 4200 and claim the account will read on my credit report as settled in full/zero balance. i call my bank and they claim my account was charge off and sent to this debt collector.i thought if an account was charge off by a bank i should have recieved a 1099c. then why pay and settle with the creditor?
Posted on: 30th Mar, 2010 06:39 pm
Hi hugo,

When your bank charges off your debt, it does not always suggest that they will not come after you for the mortgage balance. It simply means that they will report the debt as their loss for accounting reasons. Your bank sends you 1099C Form when they have forgiven your debt and decided to not come after you to collect it. This forgiven debt amount will be considered as your income and you will have to report it to the IRS. But in this case, you are still responsible for the debt and you need to pay it off.

You negotiate further with the debt collector and settle the debt for less than what they are currently demanding. Before you pay them anything, you should get everything in writing, for instance, how they will report the debt to the credit bureaus, etc.

Thanks,

Jerry
Posted on: 31st Mar, 2010 03:39 am
I just got off the phone with BofA's Payoff Dept., he told me BofA does not accept cash settlements for any loans. Has anyone heard of this nonsense? Because my next approach is BK in which I really don't want to do.
Posted on: 23rd Sep, 2010 02:34 pm
Hi patrickd,

Accepting cash settlements may vary from lender to lender. Most lenders normally accept cash settlements. You should contact Bank of America once again and negotiate for the cash settlement. If you can convince them, they may agree to your request.

Thanks,

Jerry
Posted on: 24th Sep, 2010 01:36 am
Has anyone negoitiated a cash settlement w/BOA for 1st or 2nd loan?
Posted on: 08th Nov, 2010 01:32 pm
we had a second loan with indymac. we filed for chapter 7 bankruptcy, then got a modification on our first loan with indymac and we are current on payments. in the meantime, they sent our second loan to a collection agency. when i called the ca to set up a payment plan they said they could not work with me because we had filed for ch. 7 and therefore, they had to return our second loan to indymac. indymac says they don't have our loan and they assure me the ca has it. the ca says they don't have it. no one will accept a payment on the 2nd loan. thoughts?
Posted on: 10th Nov, 2010 09:43 am
We are in the process of negotiating a cash settlement with BofA for our second, so they do indeed settle. In fact, we just got the letter from them accepting less than 10% of the outstanding balance, but we have 1 week to pay it or the settlement offer expires.
Our situations: Our first and second were with BofA. We completed a short sale in March, where the first was considered settled, but the department that handled the second wouldn't accept the short sale terms as settling the debt. We were contacted by a third party (Solace Financial) regarding this debt and they have been surprisingly great to work with. BofA had tried contacting us directly, but as we had moved and they were sending the letters to the old addy (that we no longer owned), the letters didn't catch up with us until about the same time Solace contacted us.
So, yes, BofA does settle.
Oh, and if you are trying to do a short sale with BofA, let me tell you, it's a nightmare (it took over a year to do). They lost so many docs in our process it was insane. Finally, my hubby found the email addy for the VP of that department and sent him a letter explaining our circumstances and how the bank had dropped the ball. It was a virtual cake walk from there.
Posted on: 10th Nov, 2010 11:22 am
Hi TJ!

Welcome to forums!

Your query has been replied to in the given page:
http://www.mortgagefit.com/minnesota/second-chargeoff-1.html#191098

Take a look at it. Hope it helps you.

Sussane
Posted on: 11th Nov, 2010 01:31 am
I have a 2nd loan with BOA (home equity line of credit) since May 2005. I have not made a single pymt since Nov.2008, because we been trying to get the 1st lender Wells Fargo completed first. Finally after 18 mos., we got a fix rate 4% and made our first pymt Nov. I want to do a cash settement with BOA (loan amount 142K, behind 22K). I spoke at 2 separate times with the payoff dept and both times they say that BOA are not doing any cash settlement with any loans. I find that hard to believe. Our only option, when press by BOA is to file BK 13. I hired a BK laywer, but I don't want to file BK. Does anyone have a suggestion?
Posted on: 03rd Dec, 2010 09:08 am
Hi patrickd,

It might be the policy of BOA to not go for cash settlements with the borrowers. You can contact BOA and ask them to modify your loan for suitable terms and conditions. This will not only help you in paying off the dues but you will also be able to save your property.

Thanks
Posted on: 03rd Dec, 2010 10:41 pm
I'm also looking to settle my second with BofA. If anyone can help with the appropriate contact within BofA I'd really appreciate it. I just spent 3 hrs trying to find a contact in BofA and they gave me the run around
Posted on: 17th Dec, 2010 01:10 pm
Hi Danny,

Check out the given page in order to get the contact details of Bank of America:
"https://www.bankofamerica.com/contactus/contactus.go?HTTP_REFERER=&SOURCE_URL=http://www.bankofamerica.com/contact/?statecnheck=CA&page="

Thanks,

Jerry
Posted on: 18th Dec, 2010 01:36 am
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