I settled on my second after a Chapter 7 bankruptcy! My offer was approved, I wired the money, verified they received it, and now am waiting for my "settled in full" letter and release of lien. Here are the details:
House is worth between $520K and $550K. Zillow shows it at $541,500.
First loan of $544,000 with GMAC. Signed a loan mod while in active BK but the loan did not get reaffirmed (whole 'nother story). We were 7 months behind and owned 2 years property taxes. Went from an Option Arm to a fixed at 6%, captialized the taxes and was forgiven approx. $13,000.
Second loan of $62,782 with Green Tree. Stopped paying when we filed BK in July. Green Tree sent a reaffirmation agreement while in active BK but we didn't sign it. After BK discharge, Green Tree called to see what we were going to do with the property. I told them it was a rental and we were 7 months behind on the first loan. We would like to save it and move into it but if we couldn't get a mod on the first and settle the second, we would let it foreclose. She told me to send in a settlement proposal with a hardship letter, 2 years taxes, expense sheet, P&Ls, etc.
I prepared a hardship letter and made them an offer. We had just received an unexpected check from an old class action suit for $3,376. I offered that amount to settle the debt if they would release the lien. I told them I was not sending in any financial information because we were discharged of the debt and didn't owe them anything. My financial situation should have no bearing on the settlement. I told them, upon settlement approval, I would send them the money within 10 days. I included comps for my neighborhood showing Green Tree's lien was not secured by equity. Then I waited.
I got a phone call that my offer was refused. They wouldn't settle for any less than 50%. I decided to kick it up a knoch. I found some email addresses for the higher ups on the Loansafe.org forum. I sent my letter out to all of them and requested they reconsider. I received a call from the a head honcho of Loss Mitigation. He said "I understand you refuse to send in your financial information. I told him that was correct and gave him the same explanation as I did the other person. He agreed with me that I didn't have to send them. He went on the tell me there was no way they would consider settling for $3,376 on a $62,000 debt. I asked him if they would rather get nothing than settle for less than 50%. He said "Pretty much". So, I thanked him for the call and waited...
About 2 weeks later, I get a call from the first person that had called me. She asked if I was still interested in settling. I told her I was but they better get me an answer quick. I just received a letter from the IRS of an intent to levy. If Green Tree didn't take the money quickly, it was going the IRS (By the way, I worked out a resonable payment plan with the IRS). Within 2 days, I got a call from Green Tree that they approved my offer. Yiipee!!!!
So, I settled $62,872 for $3,376. That's about 5.37%.
House is worth between $520K and $550K. Zillow shows it at $541,500.
First loan of $544,000 with GMAC. Signed a loan mod while in active BK but the loan did not get reaffirmed (whole 'nother story). We were 7 months behind and owned 2 years property taxes. Went from an Option Arm to a fixed at 6%, captialized the taxes and was forgiven approx. $13,000.
Second loan of $62,782 with Green Tree. Stopped paying when we filed BK in July. Green Tree sent a reaffirmation agreement while in active BK but we didn't sign it. After BK discharge, Green Tree called to see what we were going to do with the property. I told them it was a rental and we were 7 months behind on the first loan. We would like to save it and move into it but if we couldn't get a mod on the first and settle the second, we would let it foreclose. She told me to send in a settlement proposal with a hardship letter, 2 years taxes, expense sheet, P&Ls, etc.
I prepared a hardship letter and made them an offer. We had just received an unexpected check from an old class action suit for $3,376. I offered that amount to settle the debt if they would release the lien. I told them I was not sending in any financial information because we were discharged of the debt and didn't owe them anything. My financial situation should have no bearing on the settlement. I told them, upon settlement approval, I would send them the money within 10 days. I included comps for my neighborhood showing Green Tree's lien was not secured by equity. Then I waited.
I got a phone call that my offer was refused. They wouldn't settle for any less than 50%. I decided to kick it up a knoch. I found some email addresses for the higher ups on the Loansafe.org forum. I sent my letter out to all of them and requested they reconsider. I received a call from the a head honcho of Loss Mitigation. He said "I understand you refuse to send in your financial information. I told him that was correct and gave him the same explanation as I did the other person. He agreed with me that I didn't have to send them. He went on the tell me there was no way they would consider settling for $3,376 on a $62,000 debt. I asked him if they would rather get nothing than settle for less than 50%. He said "Pretty much". So, I thanked him for the call and waited...
About 2 weeks later, I get a call from the first person that had called me. She asked if I was still interested in settling. I told her I was but they better get me an answer quick. I just received a letter from the IRS of an intent to levy. If Green Tree didn't take the money quickly, it was going the IRS (By the way, I worked out a resonable payment plan with the IRS). Within 2 days, I got a call from Green Tree that they approved my offer. Yiipee!!!!
So, I settled $62,872 for $3,376. That's about 5.37%.
Woo-Hoo!! Congrats, this is better than I was hoping to get in the end! I'd never heard of Green Tea before and I hope BOA gets aggressive like that! When I short sold my boat they originally said no to the offer and was stalling then we had a hurricane show up in the caribbean, I informed the bank take the offer or I will turn over the keys that it's sitting in the marina uninsured in the path of the hurricane. The bank responded that day and we were closed in less than 10.
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