mckenzie4d

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About mckenzie4d

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  1. mckenzie4d

    Advice on Settling 2nd Mortgage Lien Serviced by SLS

    Hi Harry, thanks for the suggestion. Our attorney is a BK attorney and he's the one who pointed out the small gap, and nice guy that he is, he's saying that's our only angle....and that at least we had a break from paying it up to this point. He's such a nice guy, and that's his nice guy perspective. I was hoping to get some grittier guidance from someone in the trenches on the side of the consumer. We refied to have funds to invest in real estate and when the bottom fell out of the market, we lost everything and filed BK. And not paying the second helped us get back on our feet when our income was cut during the recession. I read a post from 2016 about SLS's unfair debt collection practices and was hoping there was/is a shark-like strategy for dealing with them. Quite sure they benefited from the bailout and now, honestly, we want to get out from under this with as little out of pocket as possible. Again, thanks
  2. We filed Chapter 7 in 2008, and later Select Loan Servicing began servicing 2nd mortgage, for which there was no Reaffirmation Agreement. We stopped paying in 2011 and they posted a balloon payment due in 2021. Recently we contacted SLS and found out they've added $40k unpaid interest to what they said we owe on a 2nd mortgage. The 'gap' according to our attorney is that the 2nd mortgagee cannot come after us personally, they can only come after the property, and the first mortgage has first position there. What negotiating tool do we have for pressuring 2nd to reduce the balance due to something manageable? We can wrap the 2nd mortgage into a re-fi and at $39k or less, it's worth it to do that. But at $79k in loan and interest, its not worth it. And yes, we want to stay in the home. Again, any ideas or advice on how to negotiate with SLS for 2nd mortgage lien? Thanks
  3. Following a Chapter 7 Bankruptcy, Select Loan Servicing added $40k unpaid interest to what they said we owe on a 2nd mortgage. We did not sign a reaffirmation agreement for the 2nd mortgage like we did for the first. The gap is that the 2nd mortgagee cannot come after us personally, they can only come after the property, and the first mortgage has first position. What negotiating tool do we have for pressuring 2nd to reduce the balance due to something manageable? We can wrap the 2nd mortgage into a re-fi and at $39k or less, it's worth it to do that. But at $79k in loan and interest, its not worth it. And yes, we want to stay in the home. Again, any ideas on how to negotiate with servicer for 2nd now? Thanks
  4. Thanks @stick&rudder, That spells it out clearly. That paragraph should be a sticky post!
  5. Thanks 1st Step; I did a title search -- that's how I know the second shows up on the title report.
  6. Hi Stick, To answer your earlier question; we stopped paying in 2011 and they haven't pursued it or updated the report since then. I think they stopped pursuing it because they had so many similar cases they couldn't pursue them all, so they just noted on the CR that a balloon payment is due in 2021. Re: Your Earlier Points and Advice The second shows up on the title search but apparently the loan officer didn't verify what he thought was a second on the CR with the title company; he kept asking my husband about it instead. That tells me the LO didn't have a copy of the title search and that he's not talking to the title search firm about it. The discussion the LO had with the title search firm was about a lien that showed up but belonged to someone with a similar name. So I'm going to dispute with the CRA using wrong account # strategy; since my husband's name is common, that account # could belong to a different person with a similar name. We just need a window to get the refi done. Next year the second will surpass the SOL but between now and then, we're paying a higher APR unless we can clear this second and refi. Two more questions: 1. What are your thoughts on calling vs sending a certified letter vs. email? Are there rules for when to use one versus the other? I've seen both referenced here in the forum and in the Credit Repair articles posted on the site. Thanks, MK
  7. Thanks, Stick. You make a good point about the title search. The loan officer kept mentioning the loan showing up on the credit report. The issue he mentioned with the title search was a lien that belonged to someone with a similar name. I'll do a title search and see if it shows up there and report back on how we work out the issue. I trust you on all points; I've seen your advice all over the forum. But I'm also sensing there is something we can do; I'll reflect on your advice and see what comes to me. I've not seen a similar situation outlined here so... with your help I'll make it a teachable moment. Be back shortly, MK
  8. Greetings, My husband went back and forth with SLS trying to refi 5 years ago and finally gave up and stopped paying the 2nd mortgage. Same scam as I've read in other forums: they keep needing more info and more info and never make a firm offer, then when its too late for you to negotiate with your first, you're in trouble. Today, I need help determining the best way to challenge the listing and get it removed from his credit report so he can...wait for it....refi out of the current ARM which has now adjusted upward. Up to this point, they have not pursued the debt and by the way it's listed on the credit reports (see next), it appears that they will wait until 2021 and purse atheballoon payment Here's how it's listed on TU and EQ; it does not show up on EX: On TU report, Pay Status is listed as Current, and last payment shows as Jan 2011, Ballon payment due december 2021. On EQ it shows as an Open Account, Status: As Agreed, Past Due Amount $0, Balloon Payment Due Dec 2021. What's the best approach to scrub this from the reports? I've read elsewhere online that SLS is no longer in business. Seems like DV could work if there is noone at SLS to respond to my DV request and to same from CRAs. Does anyone have experienceor with or advice for disputing this 2nd mortgage we stopped paying? Thanks, McKenzie More background on the scam, since it's not mentioned anywhere that I could find in CreditInfoCenter forums Here's basically what happened to us from this source...except we didn't go into foreclosure: