Questions on Acceptance Letter from WF

[CCCrazy]

Can anyone give me peace of mind on settling my second with WF. I received the following acceptance letter from them, and some phrases give me pause - should i have a lawyer look at the acceptance letter?

1. "In response to your request for a settlement of the balance on the above referenced account, we request the following AS CONSIDERATION (my caps) for WF to re-convey the deed of trust or satisfaction of mortgage. You need to send us certified funds in the amount of..." What is this phrase "as consideration"? They don't need to consider anything - that phrase doesn't even need to be in the sentence. Take it out and the sentence would be more straight-forward. Is the phrase just legalise?

2. "Upon receipt of the funds, the account will report to credit agencies as "Settled"." Fine, it's been discharged anyway.

3. "Please be aware that you may receive a 1099 IRS form for the forgiven debt." I don't have to worry about taxes, correct? Since the equity loan was discharged in BK, correct?

Thanks guys. I just want some serious peace of mind before I wire the settlement funds to WF. Any input and help would be greatly appreciated.

[HHM]

Sounds good

How much are you settling for?

1. Just legallise, since this is a "contract" they are using form language. Consideration is simply the word used to describe what "it" is that has value that is exchanged. Your consideration is the money; their consideration is the re conveyance of the deed of trust.

2. Correct, doesn't matter.

3. Won't matter, you discharged the deficiency in the BK, if you actually receive a 1099-C, use IRS Form 982 and file it with next years taxes.

[CCCrazy]

Sounds good

How much are you settling for?

1. Just legallise, since this is a "contract" they are using form language. Consideration is simply the word used to describe what "it" is that has value that is exchanged. Your consideration is the money; their consideration is the re conveyance of the deed of trust.

2. Correct, doesn't matter.

3. Won't matter, you discharged the deficiency in the BK, if you actually receive a 1099-C, use IRS Form 982 and file it with next years taxes.

Thank you very much HHM. The balance on my home equity loan is approximately $42000 and I'm settling for 10 percent. My house is about 20K underwater with just the first and I want to stay in it. Needless to say, I'm very relieved that WF is settling. They hold the first also.

[HHM]

Good job. 10% is right on the mark.

[onwards]

Hmm. Consideration indeed means the "thing" that makes the contract valid; in contract law, something of value has to be exchanged to make the contract valid, for example, services for cash in a consulting agreement. In your case, you are providing money in exchange for satisfaction of the mortgage.

However, I am a little concerned; is it clearly stated that they will also remove the second lien from your house in exchange for the consideration? otherwise you may get stuck with a "phantom lien". Sure, it's not SUPPOSED to go that way, but I've personally become aware of one such case recently, which is now costing someone several thousands in extra expense to go through the courts to settle the issue.

[HHM]

Hmm. Consideration indeed means the "thing" that makes the contract valid; in contract law, something of value has to be exchanged to make the contract valid, for example, services for cash in a consulting agreement. In your case, you are providing money in exchange for satisfaction of the mortgage.

However, I am a little concerned; is it clearly stated that they will also remove the second lien from your house in exchange for the consideration? otherwise you may get stuck with a "phantom lien". Sure, it's not SUPPOSED to go that way, but I've personally become aware of one such case recently, which is now costing someone several thousands in extra expense to go through the courts to settle the issue.

" re-convey the deed of trust or satisfaction of mortgage "

That is what that means. They will be conveying the deed of trust back to the CCCrazy.

[onwards]

" re-convey the deed of trust or satisfaction of mortgage "

That is what that means. They will be conveying the deed of trust back to the CCCrazy.

Yes, I saw that. I don't like the word "or".

I know I'm nit-picking, but... it SHOULD say AND, not OR.

[CCCrazy]

Yes, I saw that. I don't like the word "or".

I know I'm nit-picking, but... it SHOULD say AND, not OR.

Wow, onwards, do tell us how you were screwed over by the banks. Between this thread and the gmac one, you are one bitter guy. Let my success story inspire you, not piss you off.

[CCCrazy]

Oh, and I should say, the word "or" is used because in some state, a deed of trust is used instead of a mortgage.

[upward]

I am watching this closely, since we will be looking into doing the same. Keep us posted! I'm kicking myself that I just sent them 1000.00 to get current with a balloon payment now due! UGH

[CCCrazy]

I just wired the funds to WF today to settle my home equity loan. I talked to the person in charge of my settlement also today and I asked her what the process is now. She said that she will be notified that the funds have been sent and she will notify my county recorder that the mortgage has been satisfied. Then either the county or WF will send my the title or deed, something like that. She wasn't sure who sends it, the cty or WF. At least I think that's what she said.

[2manybills]

That's great news for you.

[CCCrazy]

I had a voice mail from my WF negotiator today that she had received notice that I had wired the funds and she will begin the process of finalizing everything today, and notifying my county recorder that my 2nd mortgage is satisfied, etc, etc. HOORAY!!!!

[upward]

That is terrific! You are an inspiration to us all who need to dump the 2nd to stay in our home!

[justbroke]

Oh, and I should say, the word "or" is used because in some state, a deed of trust is used instead of a mortgage.

That's why they used "or". I don't think there is anything wrong with the wording myself. It covers both cases.

Remember, that both types of security instruments can be used in the same State. You should lookup your "recorded" security instrument and see if it's a mortgage or a deed of trust if you're unsure.

I had a voice mail from my WF negotiator today that she had received notice that I had wired the funds and she will begin the process of finalizing everything today, and notifying my county recorder that my 2nd mortgage is satisfied, etc, etc. HOORAY!!!!

Excellent!