Who here has settled a 2nd after a ch7?

[pcn]

We settled a third mortgage with Bank of America after our discharge for 1.5% of the balance. They were completely unsecured, so that gave us leverage.

Can you elaborate on the process you went through please? My second is with BOA and our value is below the 1st. We plan on trying to settle after our ch7 is closed. Any advice really is appreciated.

[mmertens67]

Sorry for the delayed reply. I didn't realize anyone had responded to my post. Yes, I am happy to share with you what the process was for us. I found the contact information for a Bank of America rep. on a Web site through research and sent a hardship letter/settlement offer to her e-mail. She was unresponsive for the first several attempts. I also found a contact that was a VP with Bank of America. I made one more attempt to contact her and mentioned that I also had a VP's contact info and that I would be contacting him. Then, she responded immediately. She passed my e-mail along to someone in her office who called me and I explained our situation to him and told him that we were discharged from a Chapter 7 and no longer responsible for the loan. However, I wanted to settle on the release of the lien. He asked me how much I was willing to pay and I gave him my offer and he said he would accept that. This was a third mortgage that was completely unsecured and they knew it. That is the only reason I think it went so smoothly. I hope this helps you. This has been a long, exhausting process for us and we are still not through it yet, but at least one item is off my plate. It is worth the effort to keep fighting and don't give up! Best of luck to you.

[pcn]

Would you be willing to share your contact info? I'll be going down that road in less than 60 days (341 last week). Thanks!

[mmertens67]

Yes, I am willing to share the info with you. Can you pm me with your e-mail address and I will send it to you. We just sent our certified check this week. It was received and they are processing the paperwork to release the lien.

[Bubblebowl]

Relief,
Awaiting info on Citi for my Heloc. Thanks so much

[Whittier]

We settled a third mortgage with Bank of America after our discharge for 1.5% of the balance. They were completely unsecured, so that gave us leverage.

I've never heard of a third? What was the original balance? What did you do to get the ball rolling?

[Whittier]

Would you be willing to share your contact info? I'll be going down that road in less than 60 days (341 last week). Thanks!

Office of the President: barbara.j.desoer@bankofamerica.com

[liboton21]

Is BOA willing to settle for the 2nd?

[Whittier]

Is BOA willing to settle for the 2nd?

I have a senior negotiator working on this right now. will have more details later.

I sent a letter outlining my issues, 1 month worth of check stubs and last year's returns.

After I BK they will most def work on it.......but I'm hoping to take care of it now

[pcn]

I have a senior negotiator working on this right now. will have more details later.

I sent a letter outlining my issues, 1 month worth of check stubs and last year's returns.

After I BK they will most def work on it.......but I'm hoping to take care of it now

Are there any issues with settling before you file? Does a preferential payment only apply to unsecured creditors?

[Whittier]

Are there any issues with settling before you file? Does a preferential payment only apply to unsecured creditors?

from what my attorney has said there are no issues, I've stated the funds are coming from a third party so I don't run into any issues later (my parents have been putting some $$$ asides for a while on the bank - paper trail). There is nothing preventing family from "helping" settle your debts. I've made some cash here and there and give to them to put in there account for me "just in case" money.....Secured creditors are OK to pay first you only run into issues with non-secure debts

[mmertens67]

It was related to business. It's complicated. If you have enough equity they will do it. We did at that time. Not any more. Our business made the payment. When the recession hit, our business (construction industry) could not survive the downturn in the market, so we had to close. Loss of income means not able to make that payment. We filed a Chapter 7 due the business debts. The amount discharged in the BK was $175k. I negotiated a settlement with BofA rep for $2,500 to release the lien. They were completely unsecured so that gave me the leverage. He said they want to help people stay in their home, but if they had equity, I am sure that story would have changed. I just sent the check this past week and they sent the paperwork to our county to release the lien. I had my attorney review all of the paperwork before I signed anything. To answer your other question, I found a BofA contact on another Web site and sent her a hardship letter via e-mail and made an offer. I finally got a response from her and got a phone call from another rep. He asked me what my offer was, I told him and then he said he would accept it. I was shocked, but extremely grateful. I am still dealing with two other mortgage holders. Our first mortgage was sold. During our hearing for relief from stay it was discovered that the title company made a mistake on the title and so that allowed the 2nd to move into first position. Now the larger lienholder has filed a claim with their insurance company to pay off the first and then they tell me they will move forward with us on a modification. I hope they follow through. We were already preapproved for a mod prior to this information being discovered. We will see. That's more than you asked for, but as I said, our situation is not the norm.

[MrBankruptcy]

You can't strip a second in Chapter 7. That would be allowing someone to not pay a creditor that loaned money based on the security of the property. If that was allowable many people would ask for their auto loan to be stripped and keep thier vehicle. I have heard of claims of people doing this but never seen proof of it. I think it's a fable.

[Whittier]

To answer your other question, I found a BofA contact on another Web site and sent her a hardship letter via e-mail and made an offer

Please post the contact details, some of us might need it.

[Whittier]

You can't strip a second in Chapter 7. That would be allowing someone to not pay a creditor that loaned money based on the security of the property. If that was allowable many people would ask for their auto loan to be stripped and keep thier vehicle. I have heard of claims of people doing this but never seen proof of it. I think it's a fable.

It's not stripping, it's settling the debt directly with the lender/investors. It's not a guanteed way as it's on Ch 13 but it has been done several times. Sometimes the bank/investor rather loose some money than all money. I have seen people do it with Citibank, where their home was so underwater and they BK (Ch 7) and instead of loosing all they setled especially because the debtor no longer had a financial responsability and could walk away.......if foreclosed the 1st was still 25% underwater and it would had been years/decades before it would be stable enough to have equity................so they bank/investor settled. I think BofA is harder to work with but not impossible. Key is to know who's the investor on the loan, if BofA is servicing only you sent them the offer and the investors a copy..................if you BK you want to send them copies of the BK discharge, but they should already have a copy. BofA is not taking as many settlement because they are the only bank who has signed up for HAMP2, where they could settle with the gov't at 12 cents on the dollar, but have not worked the kinks yet. One you qualify for HAMP they same terms would apply to HAMP2. But for those who do not qualify just as they do in-house modification they will do settlements with.....they might want to keep it at the 12% mark to have it inline