Trying to settle discharged 2nd mortgage (DCU)

[MrsDixon]

I am trying to get across to the thick-headed holder of the 2nd on my house that I can stop paying the 1st and they would get nothing. I even alluded to sending the 2nd "to the guillotine" and included the URL to the Wikipedia article on Marie Antoinette (beheaded in the period of the French Revolution) in a letter I recently sent. I also included this New York Times article.

You sent them that article? LOL. Gutsy for sure.

[CCsAreEvil]

So... Chase recently started calling and leaving voice mails on my cell (I don't think they have my current home phone). They've called 2 times now on different days. My 2nd lien is discharged (Dec 2009). I haven't paid them now for 6 months. I wonder if either there's a communication problem where the dept which is trying to contact me doesn't know the secured loan was discharged in BK or I wonder if they have an obscure method of telling me they will foreclose my house but NOT try to collect payment?

They left a number for me to call back, but I haven't tried calling them yet. Could it hurt me to call them back?

[MrsDixon]

I got an email today that they denied my offer. They counter offered @ 30% of the balance on the loan. I think that we're just going to stop paying the mortgage and move after WF forecloses on the 1st. I hope they enjoy the $0 that they get from WF.

[Brazzy]

Before I begin please understand that this is nothing personal I am simply going to try to give you the mindset of the people you are dealing with.

How big is WF and how big are you? What do you think your offer means to them? In these situations of Jr liens being discharged in BK and foreclosure being decline the loan is already considered a loss. People think they are fighting the good fight or making a difference by sending them articles of people being beheaded or offering $3k to settle the loan. In all honesty it is making zero difference. Any bank who has decided to just jump on the first offer that comes across the table is getting smoked right now and they quickly get off that band wagon. I know I mentioned this before but it bears repeating. Most people who threaten to walk away from their house are full of it. People are making the attempt because they want the house for whatever reason (future investment, sentimental value, convenience, etc).

I give this basic scenario and just ask the question of what would you do.
You have a lien that is totally underwater. On the flip side its not going anywhere. The account holder is current on the first and as long as the first doesnt foreclose that lien will be there forever. In that never ending time frame known as "forever" the market will eventually (no time frame as to when) come back. Would you just take any piddly offer right now to settle it? I mean these liens are like golden tickets. They are gonna hold on to them and wait for the right time to cash them in. Right now is not the time.

Anyone who wants to fire these types of scenarios and threats to a bank I strongly suggest to the bank to fire it right back. The customer wants to make a sly comment about letting the house go to foreclosure the comeback should be something like: "Make sure you bring a jacket. Its hear it gets cold that time of year in your area."

[iv65536]

Before I begin please understand that this is nothing personal I am simply going to try to give you the mindset of the people you are dealing with.

How big is WF and how big are you? What do you think your offer means to them? In these situations of Jr liens being discharged in BK and foreclosure being decline the loan is already considered a loss. People think they are fighting the good fight or making a difference by sending them articles of people being beheaded or offering $3k to settle the loan. In all honesty it is making zero difference. Any bank who has decided to just jump on the first offer that comes across the table is getting smoked right now and they quickly get off that band wagon. I know I mentioned this before but it bears repeating. Most people who threaten to walk away from their house are full of it. People are making the attempt because they want the house for whatever reason (future investment, sentimental value, convenience, etc).

I give this basic scenario and just ask the question of what would you do.
You have a lien that is totally underwater. On the flip side its not going anywhere. The account holder is current on the first and as long as the first doesnt foreclose that lien will be there forever. In that never ending time frame known as "forever" the market will eventually (no time frame as to when) come back. Would you just take any piddly offer right now to settle it? I mean these liens are like golden tickets. They are gonna hold on to them and wait for the right time to cash them in. Right now is not the time.

Anyone who wants to fire these types of scenarios and threats to a bank I strongly suggest to the bank to fire it right back. The customer wants to make a sly comment about letting the house go to foreclosure the comeback should be something like: "Make sure you bring a jacket. Its hear it gets cold that time of year in your area."

The point of the whole exercise is to show them that the "golden ticket" they are holding amounts to at best a lottery ticket and that the best thing they can do for their shareholders is to simply take the offer and move on.

In most cases, the redemption period in Minnesota is six months from the sheriff's sale. If I decide to stop paying on the fist mortgage, I will use that and the expected foreclosure timeline to determine when I stop paying. the only thing is that the first mortgage is involved in FDIC receivership and a loss-sharing agreement; I think I can use this loss-sharing transaction to pit the FDIC and the new bank against each other.