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Setteling 2nd mortgage for less than owed

Posted on: 07th May, 2012 11:51 am
my wife and i have been offered by our second mortgage holder to settle for 10% of balance owed if we pay the full 10% within 6 months. we aren't all that concerned about credit rating. what questions or things should we ask for in the agreement to prevent the remaing balance for being possibly sold to a collection agency and to make sure they file everything with the probate court releasing the lien on the property deed?
Hi 2by2!

Welcome to forums!

The lender is offering you a good deal. However, you should get this is writing from the lender and then start paying off the amount. Also, I agree with you that you should get it in writing that the lender won't charge off the rest of the balance amount and assign it to a collection agency. You should get it in writing that they will provide you with a lien release certificate once you pay off the said amount.

Feel free to ask if you've further queries.

Sussane
Posted on: 07th May, 2012 07:39 pm
Hi 2by,

Once you receive the concerned agreement from the lender, you can show it to a real estate attorney and he will let you know the flaws, if any, in the agreement. You can, then, accordingly take the required steps to negotiate with the lender.

Thanks
Posted on: 08th May, 2012 08:45 pm
Ask them to put PAID in FULL in the letter back to you otherwise, it will show as Legally "paid in full for less than agreed" on credit report and when lenders see that it means short sale or foreclosure to them. 3 year wait for the best rates.
Posted on: 14th May, 2012 08:32 am
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