Many homeowners who find themselves underwater with the mortgages on their properties do not know the possibility exists to 
reduce or simply eliminate their second mortgage if they qualify. Many second lenders that hold second mortgages have been in the habit of sending negotiation letters to borrowers, advising them that they will settle for pennies on the dollar to wipe out their loan. Many borrowers get these letters and ignore them. Not such a great idea.
These letters are real and even if you did not get one, we have found that more and more often, lenders will accept a percentage of the debt, sometimes as low as 5% or 10% and cancel the mortgage. The most important thing you must do, however, is make sure that the settlement is in writing, the terms are set out specifically and that the bank agrees that upon receipt of the monies from you, they will issue a satisfaction of mortgage. If not satisfaction of mortgage is negotiated, then you may find yourself paying the lender monies, however, the loan remains against the title of the home. When the borrower, years later, wants to sell the home, the loan must once again be negotiated and paid off.
“At my firm, we have obtained settlements as low as 2% of the mortgage debt on the second mortgage, with the satisfaction of mortgage sent to us to record. This puts borrowers in a position to keep their home and perhaps now have equity. ” – Jacqueline A. Salcines, Esq.
With property values continuing to rise, now is the best time to negotiate loan settlements, before its too late and the bank realizes that the property is valued higher than expected.
Call us today to review your particular situation and qualify you for a loan settlement. The consultation is always free.
Jacqueline A. Salcines