Posted on: 07th May, 2008 08:39 pm
I am a real estate agent. Im working a short sale. the first lender(wamu) I couldnt get to call me back for months. the second lender(chase) settled with me for 3k. Then finally wamu said they would settle, now the second charged off the debt and sent it to collections who said they want a full pay off.
The sheriff sale is tommorrow, minnesota has a 6 months redemption period. If the home is foreclosed and the lender takes the property back deosnt the debt stay with the property and the collectors cant come back after the person?
how does this all work and does anyone have any suggestions, this collector is playing hardball. I dont have to much time and the deal will blow then its dead.
thanks for your help.
The sheriff sale is tommorrow, minnesota has a 6 months redemption period. If the home is foreclosed and the lender takes the property back deosnt the debt stay with the property and the collectors cant come back after the person?
how does this all work and does anyone have any suggestions, this collector is playing hardball. I dont have to much time and the deal will blow then its dead.
thanks for your help.
Welcome troyusaguy,
Did the second lender give it to you in writing that they'll settle the debt with you? if you have a written proof stating that they were willing to settle, then you can at least remind Chase about what they promised. If there's no written proof, I'm afraid, you'll have to pay the amount in collection.
I understand it's hard for you to accept all these, but the fact is, once the debt has been in collections, and if the sale poceeds are not enough to retrieve the unapid balance, you'll have to pay off any debt in collection if you'd like to save your credit from getting damaged too much.
Did the second lender give it to you in writing that they'll settle the debt with you? if you have a written proof stating that they were willing to settle, then you can at least remind Chase about what they promised. If there's no written proof, I'm afraid, you'll have to pay the amount in collection.
I understand it's hard for you to accept all these, but the fact is, once the debt has been in collections, and if the sale poceeds are not enough to retrieve the unapid balance, you'll have to pay off any debt in collection if you'd like to save your credit from getting damaged too much.
yes it was in writing but the offer expired April 11th 2008. i asked to have it extended. The collector told me since they already charged it off, they is no reason for them to settle for less.
Do I have any barganing chips?
isnt the house the collateral and if the note isnt repaid the lender can have the house ut the loan doesnt follow the person, or is my understanding mistaken?
Do I have any barganing chips?
isnt the house the collateral and if the note isnt repaid the lender can have the house ut the loan doesnt follow the person, or is my understanding mistaken?
hi troyusaguy,
welcome back.
now as the property is going to be foreclosed and even after the sale the due debt will not be paid back, the lender can claim deficiency judgment to you.
if you have requested the lender for deed in lieu of foreclosure and if accepted it then the lender would not come after you for foreclosure.
feel free to ask if you have any further questions.
best of luck,
larry
welcome back.
now as the property is going to be foreclosed and even after the sale the due debt will not be paid back, the lender can claim deficiency judgment to you.
if you have requested the lender for deed in lieu of foreclosure and if accepted it then the lender would not come after you for foreclosure.
feel free to ask if you have any further questions.
best of luck,
larry
so a persons's only option to clear this up is to file bankruptcy? How does that work a secured asset transfers to a person?? Its not my property, Im the listing agent and wondering what I should advise my client. The sheriff sale is now today. The bank already charged the debt off, is this deal dead, is there any angles to work the lenders? This is getting way more stressfull than the deal is worth doing. Should I cancel everything and walk away?
I feel bad for my client who is going through hard times, any suggestions??
I feel bad for my client who is going through hard times, any suggestions??
Welcome Guest,
Is it that your client is going through foreclosure and the foreclosure sale is today? Then I think you cannot do anything now but your client will have to face the credit effect.
Is your client owe more than the value of the property?
Is it that your client is going through foreclosure and the foreclosure sale is today? Then I think you cannot do anything now but your client will have to face the credit effect.
Is your client owe more than the value of the property?
mr listing agent, why did you wait until the day before the foreclosure sale to seek help on this forum? do you consider that due diligence?
now, of course, the sale date was yesterday - i had not seen your original post until this morning, so i cannot be of any assistance, obviously.
did you consult with any legal experts throughout the process here? did your client have a lawyer?
as to your question "so a person's only option to clear this up is to file bankruptcy?" - honestly, there's another option that a lot of people never consider. it is actually paying the debt that is owed - what a novel approach, huh?
now, of course, the sale date was yesterday - i had not seen your original post until this morning, so i cannot be of any assistance, obviously.
did you consult with any legal experts throughout the process here? did your client have a lawyer?
as to your question "so a person's only option to clear this up is to file bankruptcy?" - honestly, there's another option that a lot of people never consider. it is actually paying the debt that is owed - what a novel approach, huh?
Hi there.....we have a first and second on our home. they add up to more than what the house is worth. We have not been able to make payments on the second for the past 8 months. We have been trying to make arrangements with PNC bank but no luck. We have called and called...not sure what to do. Can they take our house? Our first mortgage is current. Not sure what to do
Thanks
Thanks
my second mortgage was included in bankruptcy and states bankruptcy discharged. no one from the lender appeared at my hearing. now they are hounding me for payment. should i have to pay?
Hi durango,
There are chances that the second lender can charge off the loan to a collection agency who will in turn collect the dues from you. You need to contact your lender and check out whether or not they have charged off the loan. If yes, then you will have to negotiate with the collection agency and pay it off.
To guest,
What type of bankruptcy did you file? If you filed for Chapter 7, and did not reaffirm the debts, you are not personally liable to pay the loan.
Take care.
There are chances that the second lender can charge off the loan to a collection agency who will in turn collect the dues from you. You need to contact your lender and check out whether or not they have charged off the loan. If yes, then you will have to negotiate with the collection agency and pay it off.
To guest,
What type of bankruptcy did you file? If you filed for Chapter 7, and did not reaffirm the debts, you are not personally liable to pay the loan.
Take care.
They have every right to sue your deadbeat ass! Most people like you are just walking away from your house because it's worth less than what you owe. They can afford it, but they now are trying to blame the lenders for loaning them the money, acting like a victim which is BS!
Yeah, that's the true American way! I bet you are a democrat and were raised by democrats!
Yes, the lenders have up to 25yrs to hound you to pay YOUR DEBT! So PAY YOUR DEBT!
Like Sara said above, Take care.
Yeah, that's the true American way! I bet you are a democrat and were raised by democrats!
Yes, the lenders have up to 25yrs to hound you to pay YOUR DEBT! So PAY YOUR DEBT!
Like Sara said above, Take care.
durango400..the second lender has several options they can take if the value of the home is in their best interest they can still take you to foreclosure and pay off your first so they now own the home, most 2nd lenders don't choose this option but they still can and will. If you want to keep your home you should talk to them about a modification or a payment plan because they also have the option to still pursue you and possibly sue you over your 2nd lien obligation even after they charge it off. If you want to leave your home you should talk to a realtor about a possible short sale it's not the best option but it's better than foreclosure.
Dear forum,
I am a r/e investor that ran into hard luck and had multiple foreclosures and shortsales. Some of 2nds sent us 1099's and those accounts are closed permanently. Some of the accounts the lenders have closed the accounts and are still attempting to collect the full amount of the 2nd. We are doing everything we can to NOT file a BK and resolve the matters with lenders, however I would need to settle on discounted amounts and payoff terms I could manage. If none of my creditors will settle for less than what is owed, then I will have no choice but to do a chapter 7 BK, but that is my last resort. So here is my question and I think the answer will help many people get to a bottom line in their situation who are opting for NON-BK and trying to work it out with their lenders...my credit is already majorly ruined, so credit repair in the short-run is not the issue, just getting settled up with these creditors so I can get on with life, then I can start to re-build my credit again later.
So is it better to try to settle with the lender before or after it goes to the Collection agency (CA)? Or even wait till it goes to an lawyers office and wait till they act and get a judgment? Do I get proactive and contact them or wait for them to come after me? If I go to them first, does that give them upper hand, or is better to hide out and wait to see what moves they take, if any at all?
What is the best way to settle with a lender/collection agency in terms of how much to offer (in terms of cents on the dollar) and will they offer me terms like 0% interest on the settlement amount?
How long do the 2nd mortgages have to get a judgment before they lose the right to come after you?
How much hard ball can I play with these guys, if they will not work with me, I can always just do a chapter 7 BK, however if I can settle for the right amounts and the right terms I could pay this off over the next 3-5 years...but with me owing almost a million in 2nd mortgages and having no equities of any sort, paying off full amounts is not feasible, however 5-20% of that number would be over time, but how can I get them to work with me to get that to happen?
Again I am trying to take as much responsibility as I can for my debts, I feel strongly that these banks are the real causes of this mess and are getting people like me to pay for it. I am willing to pay what I can, but I need help in knowing where to go from here. Thanks to all who give their advise to me and others who are trying to not BK there creditors, but settle for something they can work with.
The Flash
I am a r/e investor that ran into hard luck and had multiple foreclosures and shortsales. Some of 2nds sent us 1099's and those accounts are closed permanently. Some of the accounts the lenders have closed the accounts and are still attempting to collect the full amount of the 2nd. We are doing everything we can to NOT file a BK and resolve the matters with lenders, however I would need to settle on discounted amounts and payoff terms I could manage. If none of my creditors will settle for less than what is owed, then I will have no choice but to do a chapter 7 BK, but that is my last resort. So here is my question and I think the answer will help many people get to a bottom line in their situation who are opting for NON-BK and trying to work it out with their lenders...my credit is already majorly ruined, so credit repair in the short-run is not the issue, just getting settled up with these creditors so I can get on with life, then I can start to re-build my credit again later.
So is it better to try to settle with the lender before or after it goes to the Collection agency (CA)? Or even wait till it goes to an lawyers office and wait till they act and get a judgment? Do I get proactive and contact them or wait for them to come after me? If I go to them first, does that give them upper hand, or is better to hide out and wait to see what moves they take, if any at all?
What is the best way to settle with a lender/collection agency in terms of how much to offer (in terms of cents on the dollar) and will they offer me terms like 0% interest on the settlement amount?
How long do the 2nd mortgages have to get a judgment before they lose the right to come after you?
How much hard ball can I play with these guys, if they will not work with me, I can always just do a chapter 7 BK, however if I can settle for the right amounts and the right terms I could pay this off over the next 3-5 years...but with me owing almost a million in 2nd mortgages and having no equities of any sort, paying off full amounts is not feasible, however 5-20% of that number would be over time, but how can I get them to work with me to get that to happen?
Again I am trying to take as much responsibility as I can for my debts, I feel strongly that these banks are the real causes of this mess and are getting people like me to pay for it. I am willing to pay what I can, but I need help in knowing where to go from here. Thanks to all who give their advise to me and others who are trying to not BK there creditors, but settle for something they can work with.
The Flash
Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about35613.html#153483
Take a look at it. Hope it helps you.
http://www.mortgagefit.com/inprocess/about35613.html#153483
Take a look at it. Hope it helps you.
we filed chapter 13 bankrupsy in 2008 and have been paying the minunmum principal bal on an equilty loan . they sent a letter for a balance of the principle equity amt we paid that and they say it has been charged off but still owe the original loan amount. so what was charged off? i am confused
hi tj,
didn't you receive a repayment plan from your lender while you were in chapter 13 bankruptcy? if you had made your payments as per that plan, then the lender will not be able to charge off the loan. i would suggest you to speak to your lender and clarify the whole issue.
didn't you receive a repayment plan from your lender while you were in chapter 13 bankruptcy? if you had made your payments as per that plan, then the lender will not be able to charge off the loan. i would suggest you to speak to your lender and clarify the whole issue.