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Thread: When will it ever end? - Underwater Second Mortgage woes

  1. #1

    When will it ever end? - Underwater Second Mortgage woes

    I am being sued by Wells Fargo, the trustee on my underwater 2nd Mortgage. The claimed amount owed is $46,000. They refuse to settle for anything less that 50% and I do not have access to those funds. I went as high as 12,000 at one point. I did speak to an attorney and they have been zero help and continually tell me that the 50% is a good offer. My 1st mortgage is current and I am underwater by $100K on that loan alone. I am meeting with a different attorney tomorrow to discuss the possibility of filing a Chapter 13 BK and attempting to strip the 2nd lien. I also filed an answer and special defense in order to avoid them being awarded a default judgement. They are really playing hardball... Since I filed my answer in October, nothing has happened with my case and I've made no additional settlement offers. Any thoughts?

    Greentree is/was the servicer on the account, and the ones I am assuming are declining my settlement offers. I am located in CT. BTW.

    I may move to make some discovery requests at this point as well such as a copy of the Assignment of Mortgage among other things.

  2. #2
    Thanks for your post.

    As you filed an answer to the complaint in October and of heard nothing more, it's quite possible GT has decided FCing makes no sense since the loan is clearly underwater.

    I recommend you NOT file BK, which IMO should be used as a last resort, after all other options have failed.

  3. #3
    The lawsuit is a contracts case, not a foreclosure. They are suing me on the Note as they have already realized they have nothing to gain by foreclosing. I cannot figure out why they are being so stubborn w/ settlement. I'll fight pro-se in court as long as I can but eventually and judgement and wage garnishment attempt will be made. I want my ducks in a row so I can quickly file a Chapter 13; I also have the option of court mediation. I followed the strategy to the tee and it's not working out w/ these people... Very frustrated.

  4. #4
    Anyone there? I am not filing BK. My next step is to file a motion for discovery and interrogatories. The attorney I've spoken w/ wants me to offer them more money to settle and I have reached my limit. He also stated it is unusual that it's taking this long for them to file a reply to my answer. Any thoughts?

  5. #5
    Turn of events. I was writing up my Discovery request today and I got a monthly billing statement in the mail from Green Tree Servicing. This is the first statement I've gotten from them in probably 2 years. It shows the date of last payment of 8/3/2010. Any thoughts?

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