Need urgent advice

[Lana]

I was discharged in March. I made an offer of 5k on my HELOC 57k debt to settle and get a lien release. It's my deciding factor in whether to keep the house or not. My first is affordable (now) and with just the first I would keep the house.
Protocol - who services my debt for Citi sent me a "settlement offer" today accepting the 5k as "settlement" and "ending any further obligation to the debt" if they receive the 5 k tomorrow.
I guess my concern is that they have no lien release wording in the letter. I already have no obligation to the debt. they insist that Citi will release the lien once I have paid the settlement.
Well...forgive me if I don't trust collectors...but is there any way they can just take the 5k as "settlement" and not issue a lien release?

By the way they didn't put any wording on the letter about bankruptcy, just saying "this is an attempt to collect a debt" on the bottom, which I think is actually illegal considering they cant attempt to collect debt from me...but I guess that is a non issue for now.

What should I do? Send the 5 k and hope for the best?

[bkinparadise]

What I've heard about collection agencies (from Dave Ramsey Show) is that they are scumbags that would rip you off if given the chance. I'd seek the advice of a lawyer prior to doing anything. Good luck.

[Flamingo]

We can't tell you what to do as we don't have the document in hand nor are we attorneys but anytime you have a document to sign and you don't understand it or have questions, get a lawyer to look at it.

[Intoodeep80]

I personally wouldnt do anything until I had a letter stating the debt would be paid in full at the settled amount AND I had a release of lien.

When I bought my SUV back from the bank after my ch7 (for pennies on the dollar I might add ) I made SURE that wording was in their acceptance letter. That way, its on paper in the contract you've entered with them, and is enforceable in a court of record.

[Ann]

I was discharged in March. I made an offer of 5k on my HELOC 57k debt to settle and get a lien release. It's my deciding factor in whether to keep the house or not. My first is affordable (now) and with just the first I would keep the house.
Protocol - who services my debt for Citi sent me a "settlement offer" today accepting the 5k as "settlement" and "ending any further obligation to the debt" if they receive the 5 k tomorrow.
I guess my concern is that they have no lien release wording in the letter. I already have no obligation to the debt. they insist that Citi will release the lien once I have paid the settlement.
Well...forgive me if I don't trust collectors...but is there any way they can just take the 5k as "settlement" and not issue a lien release?

By the way they didn't put any wording on the letter about bankruptcy, just saying "this is an attempt to collect a debt" on the bottom, which I think is actually illegal considering they cant attempt to collect debt from me...but I guess that is a non issue for now.

What should I do? Send the 5 k and hope for the best?

Lana, I would absolutely have them put in writing that you are settled AND the lien is being released. Tell them that you will not sign any papers until those words "release of lien" is put into the contract!!! After everything I've been through lately, I trust NOBODY!!!! I do have a question though... did you stop making payments to them in order to get them to agree to this??? I am hoping to do the same when all is said and done with my filing.

[Lana]

After making a big fuss they did send an additional directly from citi saying the lien would be released so I paid. I hope it works out and I didnt just send 5k into a big black hole.
I haven't paid on that loan for over a year. In fact they were ready to settle several times before I filed, and again now.
I mean they have nothing. I am discharged, I dont pay and they have no equity. They'd be stupid not to take a settlement.