Etrade 2nd

[jimbo367]

Anyone have any dealing with them?

I have a second 45K which is now unsecured, a collection agency CLS consumer services (a loan servicing co) offered 30% payoff.

I was thinking about making them a counter offer of 10%


Jim

[justbroke]

I have a second 45K which is now unsecured, a collection agency CLS consumer services (a loan servicing co) offered 30% payoff.

I haven't dealt with eTrade in a Second Position, but if this was a home loan and you signed a mortgage, the "security" doesn't just go away. They probably still have the lien.

There are ways to poke at it to quiet the title, through the court, to see just how good their lien position is, but they probably still hold the lien. Check your public records to see if there's an assignment of mortgage recorded.

Have you filed bankruptcy yet? That 30% will probably go down if you had filed bankruptcy and the loan was discharged. A counteroffer is always appropriate. I'm willing to guess that they'll come back with 20% after you coutner with 10%. Maybe you can get to 17.5%!

[jimbo367]

didn't file yet, was thinking if I could settle with them I may be able to do a 7 rather than a 13

[pcn]

If you do a ch13, won't you lien strip so that the "payoff" goes to 0%?
If you do a ch7, the negotiations would get you much better than 30%, right?
And last question, if you settle pre-bk will that payment cause any issues when you file?

[HHM]

Also, if you do the chapter 7, you won't have the tax issue (granted, you will want to research to see if you would have to pay income tax on the forgiven amount in the first place).

[jimbo367]

If you do a ch13, won't you lien strip so that the "payoff" goes to 0%?
If you do a ch7, the negotiations would get you much better than 30%, right?
And last question, if you settle pre-bk will that payment cause any issues when you file?

I was just trying to avoid a 3 or 5 year ordeal, in that if I settled for say 5,000, not then needing the lien strip of a 13.
I could file a 7 and be done in a few months.

Are you saying don't settle and negotiate a deal after filing a 7?

Also, if you do the chapter 7, you won't have the tax issue (granted, you will want to research to see if you would have to pay income tax on the forgiven amount in the first place).

I thought that debt is exempt on IRS 982?

[pcn]

I was just trying to avoid a 3 or 5 year ordeal, in that if I settled for say 5,000, not then needing the lien strip of a 13.
I could file a 7 and be done in a few months.

[HHM]

I thought that debt is exempt on IRS 982?

It's not automatic, you need to make sure you qualify.

[DaisyC]

Jimbo367, how late were you on your second when E-trade sent you that offer letter for 30%? I am in the same situation but have heard nothing from them. Did they send you a letter offering the payoff without you asking? thanks Daisy

[jimbo367]

The letter just came w/o asking.

It's about year since it was paid

[LadyInTheRed]

If I could settle my second for 10% and qualify for a 7 instead of a 13, I would do it, and my second is twice what yours is. Just make sure they are the current lienholder or have authority to settle in full on behalf of the lienholder and get in writing that they will record a release of lien in exchange for payment. I'd probably want a 3rd party to act as an escrow agent so that the lien release is recorded before the money his handed to the lender. Who pays the escrow and recording fees should be part of the negotiation.

[pcn]

Any updates on this Jimbo367?

[jimbo367]

Haven't had a word from them, postponed filing until tax return in Jan/Feb '11

[dneil]

If you file during tax season, wont they take any return you have coming to you?

[Flamingo]

I was just trying to avoid a 3 or 5 year ordeal, in that if I settled for say 5,000, not then needing the lien strip of a 13.
I could file a 7 and be done in a few months.

Are you saying don't settle and negotiate a deal after filing a 7?





I thought that debt is exempt on IRS 982?

You need to prove you are "insolvent" under IRS standards. Most people find they do not qualify. You need to review all IRS information and I suggest utilizing a tax professional when filing your taxes if you go this route.