The short answer to your question is that your options are to either settle it or wait out the 6-year SOL period for AZ, but there are many more factors that must be discussed and considered before I could make a solid recommendation on what to do. We urge customers to consult with a tax professional for advice on potential a debt settlement letter on second mortgage IRS tax implications from debt forgiveness or extinguishment. With Zillow showing $840k, that means there is potential recoverable equity over and above what you owe the first lender, while a $500k valuation based on recent prior sales yields a totally different analysis.

On the other hand, if the realtor has a buyer ready to submit an offer, there’s little harm in seeing what happens. I heard there was a Fannie Mae program that will take your mortgage and spread it out 40 years. Now the SunTrust collections department has started to contact me for being late for March 2013 because they took two payments for January, February, and deposit the remaining into the principal. Yes, it’s possible in this situation to negotiate a mod on the first and settlement on the second.

JW, there is a 6-year SOL in NV, so this is definitely something you should continue trying to resolve. I had a house where the first was significantly under water and they settled for a short sale. I wonder if you think this is possible and would there be tax implications. Check the valuation on Zillow and don’t go by the county tax figures, which do not reflect current market values. I was able to modify the 1st mortgage through the HAMP program to which i am now current with. Shane, if the second mortgage or HELOC was exclusively used for closing the original sale, as I understand the definitions that would make the second a “purchase money” loan.

Mike, I can’t say whether Chapter 13 would be more beneficial in your situation, as it would depend on a variety of factors. We have more hardship conditions now than we did when we applied for HAMP , what would be our best option. However the 2nd with GMAC I stopped paying more than 12 months ago and was charged-off. I am now being sued by GT thru a MI lawyer for $50k. As long as your HELOC settlement was properly documented, there should be no need to apply under 2MP — the settlement itself should have extinguished the lien and fully resolved any deficiency on the note balance.

Hopefully you will get someone there to discuss your offer with you. Any idea what I might expect a debt settlement letter on second mortgage in this situation. We’re seeing 10-15% settlements routinely, even less in some cases. May why would a second lender agree to a settlement on a debt that is secured.

Is it to my benefit to come to a settlement this loan to wipe it out from my credit. So the first mortgage is probably a moot point now. I recommend you talk with a real estate attorney in MD to pin this down accurately. From reading your previous posts it looks like we are going to have a debt settlement letter on second mortgage to stop paying on our 2nd in order to get their attention. Mike, what should have happened in the short sale is a negotiation to release both the lien on the property, as well as any deficiency resulting from the short sale as it pertains to the second mortgage. However, they are less likely to accept a low offer when you’re clearly staying in the property.

Basically, what it means to the borrower is a derogatory credit entry, since the creditor had to formally declare a loss on the account. Does the debt forgiveness apply to our second. Calculate how much they received from the sale, deduct from the $83k, then offer around 5% of that to start and see how they counter, etc. If the home is worth $245k, and you owe $107k on the first mortgage, then on paper there is $138k equity over and above what you owe on the first. The house is sold and they are still showing my credit as late so I don’t know what reason I have to keep making payments. The house is great but if he should loose his job we would be homeless.We have decided to purchase another home, move from our home, call the bank and offer the house in lieu of foreclosure providing they release us of all libility and income” .if not we will let them foreclosure.

Go ahead with your attorney review, and then if you would like a deeper analysis, please order the consultation package via http. Currently, Primary with Ocwen which was modified recently and Im very comfortable with it with a balance of 145k. The one thing I have left to take care of is the second loan. At this point the first one is at 2.25 % for the first 5 years and will cap at 4.35% on the 8th year. Apr suze orman explains how credit score repair to fix your damaged credit. RC, if your $29k HELOC was a purchase money loan, then it should be non-recourse unless a debt settlement letter on second mortgage your state specifically permits deficiency judgments on purchase money loans.

For others, short sale, loan modification, bankruptcy, or simply doing nothing (yet) could be the correct solution. It’s possible that Wells Fargo might sell the second/HELOC to a debt purchaser. For example, debtors frequently obtain reaffirmation letter in pa for direct student loan reaffirm car loans. I called BOA and spoke to someone to make sure if they knew that they were a second lein and that my house value ( about 80,000 ) was currently far less than what I owe on the first lein.

Brittney, despite what “credit repair” ads may state, it’s not usually possible to have negative items removed from your credit report — unless there is a valid dispute about the accuracy of the entry. Confirm this with your tax professional, but my understanding is that you should be able to claim the exemption, provided the second really was used to purchase the property. Richard, it does sound like a legit offer by GreenTree, although 50% is high for a mortgage settlement. Since you are current on the note, I would not consider the settlement strategy unless the home is worth less than $417k AND you are prepared to incur serious damage to your credit. If you would like a more detailed analysis and consultation, please visit my other site at http. Jen, we haven’t yet seen a lot of purchasing activity in the second mortgage market, but I’ve been predicting for about two years that this was going to pick up in 2013-2014 as the banks work through this old inventory of notes.

Hello, I hope you can help a debt settlement letter on second mortgage me with a few questions. I still have a HELOC/2n on it which a debt settlement letter on second mortgage was not part of the foreclosure. If you want help, I do offer a document review service for $100, where I check letter copies for people who want that extra level of assurance that the letter is adequate for protection against future collection activity. But what does charge off status of an account mean to the borrower.

The property is worth about 219K and the balance on the 1st is 229K and the 2nd is 54k. Oct if you get a letter from bank of america offering to eliminate the second mortgage. State laws determine how many payday loans you can have at once.

This can be a tricky situation, depending on the “water line” for the property. Fha streamline refinance loans allow you to reduce the interest rate on your. Would love to settle for 10% and get my peace of mind back. I don’t have it myself, but I’m going to get a contribution letter that will need to match what I need – it can’t be too high and it can’t be too low. Can I settle for a payment or something like that so I can get another mortgage.

Welcome to the sba loan default. This action effectively removed any current or future claim the bank may have had to the customer’s property through the second lien. We received a chapter 7 discharge 2 years ago. I make approximately 44,000 and get $6000 in child support. They say this is a high balance loan, and the lender would never consider anything below 30-40k. That means a settlement is a possibility, although it’s always much more difficult to obtain a settlement when you are staying in the property, and there is no guarantee that the creditor will approve a settlement.

A house just sold in my neighborhood for 235, but it was the smallest one on the street. Is It possible thru the DOJ settlement agreement that these two banks can now work together to foreclose. Foreclosure is a serious situation that has serious repercussions. Coming up with the 21k to make the deal is nearly impossible. Mike, yes, it is possible to negotiate a principal balance on the second when the first is held by the same lender. If you can, you want to avoid a foreclosure as much at all costs.

We have a plan setup that should take care of the first mortgage, but our second mortgage is in charge-off status. Ashok, if you have already modified the first mortgage with WF, then you should inquire with them about the “2MP”, which is a modification program specifically for second liens. My house is valued at 321,000 on zillow.com. Brian, if the second lien holder has dismissed their lawsuit against you, then I would interpret that as a good sign that a settlement may be possible.