Posted on: 27th Aug, 2010 06:48 pm
Wells Fargo charged off our $160k equity loan just as we got approved for a loan mod. on our 1st mtg. (also WF). My wife and I have contacted the collection agency 3 times (yes we actually call THEM and try to resolve it!) but they are looking for a "lump sum" offer. We have offered to make payments but again, they only seem to be interested in some type of lump sum settlement. We are insolvent... we have very little savings, no 401k's or IRA's nor any real assets. What irks me is that we're being told that unless we come up with some type of offer the next step will be to seek legal action. Doesn't that mean that they intend to seek a judgement to garnish wages? If so then what is the difference between us OFFERING to make payments vs. them taking payments through wage garnishment??? Also, hasn't having a charge off against us ruined our credit meaning who do they expect us to get a loan from!!?? I was told by them to ask friends and family for help!!!!!! HELLO... the whole friggin' country is in the same mess do they really think anyone has the means to help when they're trying to get by themselves??!!!! Any suggestions?
Hi aysojaguar!
Welcome to forums!
You should contact the collection agency once again and inform them about your severe financial hardship. You should even let them know that you're insolvent and that it would be a better option if they give you some kind of repayment plan to pay off the dues. Proper negotiation with them might help you in getting a payment plan and saving your wages from garnishment.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You should contact the collection agency once again and inform them about your severe financial hardship. You should even let them know that you're insolvent and that it would be a better option if they give you some kind of repayment plan to pay off the dues. Proper negotiation with them might help you in getting a payment plan and saving your wages from garnishment.
Feel free to ask if you've further queries.
Sussane
We will keep trying although it was very hard not to go off on "Jim" when I called them yesterday! We sought help from both our 1st & 2nd and were constantly told by the 2nd that they wouldn't do anything until they knew what the first was going to do. We kept the 2nd informed the whole time and submitted all the same documents we did w/1st + countless phone calls only to have it charged off! We even made a payment right at the 6mo. mark and were told by them it was a good thing we did because now it wouldn't be charged off!! Now we're documenting our attempts to work w/CA and are wondering if they do take us to court and we explain to the judge that we tried to seek help from the 2nd only to get slapped in the face AND tried to work w/CA but they wouldn't accept payments yet here we are in court so they can take payments what the judge's reaction might be? We got our 1st mod. all on our own and it took 20mos. and was a nightmare!!!!!! You can't even believe the stress we went through thinking we were going to lose our home but we didn't give up and I honestly haven't met anyone that was able to do what we did without going through an outside agency. Hopefully it would make a favorable impression on any judge to see that we're willing and able to put in the footwork and do what it takes.
Go into chapter 13 and the debt will get discharged.
Met w/BK attorney. We can file chpt7 and stop them from trying to garnish wages but were told they'll put a lien on the home. I understand what that means as far as if we ever try to sell or ever do get equity back in the home but what would having a lien do if we never try and sell or take out equity? Attorney said the C/A would most likely try and make some type of offer right away but if they did put a lien on the home what exactly does that mean if we just planned on staying in the home forever???????
Hi aysojaguar,
Once you file bankruptcy, your creditors won't be able to take any actions against you. The court will issue an automatic stay against your creditors. Thus, the creditors won't be able to place any lien against your property. You can get your debts discharged in your bankruptcy filing and you won't be personally liable for the dues.
Once you file bankruptcy, your creditors won't be able to take any actions against you. The court will issue an automatic stay against your creditors. Thus, the creditors won't be able to place any lien against your property. You can get your debts discharged in your bankruptcy filing and you won't be personally liable for the dues.
Very interesting info adonis. The atty. I met with was pushing for me to file chpt13 and lien strip the 2nd. Problem is we only owe $84k and it was appraised at $102k. Getting it appraised for less than what we owe may be a problem thats why I was thinking chpt7. Plus I'm sure you're aware that filing chpt13 costs a little more which has me wondering the motive of wanting us to file chpt13???? Guess I'll do a consult w/another lawyer!
Hi aysojaguar,
It is possible to strip off your second lien with the help of Chapter 13. I guess your bankruptcy attorney wanted the same. Check out further information in this regard from the given page:
http://www.mortgagefit.com/bankruptcy/chapter13-lienstripping.html
Thanks
It is possible to strip off your second lien with the help of Chapter 13. I guess your bankruptcy attorney wanted the same. Check out further information in this regard from the given page:
http://www.mortgagefit.com/bankruptcy/chapter13-lienstripping.html
Thanks