I need really good upper management information.


I know its a collection agency.   We have a home listed that back in 2007 was worth about $150k.  Now, its worth maybe $30k!

The seller has 3 mortgages, the last being supposedly held now by CBCS.   They are not budging on what they want and I find it absurd what they are asking for.

The seller is a disabled vet that fought in the first gulf war.   He has literally lost his job, wife, kid and now probably his home.

This is my last ditch effort to try and resolve the issues:

CBCS wants $7k in cash and $200 p/mo note signed for 60 Months.

Seller went back with:  He has $5k he can borrow from family and since he does not work and still fighting (crazy) for his benefits from the VA, he is not comfortable with $200 a month but is willing to pay $100 p/mo.


They flatly refused.  I told them, in that case, the house will go to foreclosure, they will get ZERO.  I will have the seller contact bankruptcy attorney after foreclosure and wire the entire debt away......they are like......okay!  Ummmmmmmm  how stupid are these people!


Any contact information would be amazing.  I believe in my seller and since he put his life on the line so ALL of us can work and live in this country, he deserves special consideration.


Terri Barrow

Keller Williams - Palm Harbor Florida

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I never heard before that a collection agency of credit cards debit or medical bills, can put a lien on a property.How can this be possible?

Augusto, they have to get a judgement, in court. The recorded judgement becomes a lien.

Your client should consult with an bankruptcy attorney. I am not an attorney but I believe there were some changes made to the bankruptcy law in the middle of this real estate meltdown that now allows a bankruptcy judge to strip off excess mortgages. I am not sure if that passed or was just talked about. I have sold properties as a short sale out of bankruptcy. You need to work with the attorney on the timing of taking the property out of the bankruptcy.  The key is to see if the judge can separate the 2 junior lien holders so you can get it sold. If your client has to reaffirm the debt, that won't do so look for a knowledgable attorney.  Most attorneys will do a free consultation. You could help your client write down questions to ask. Also as a serviceman, there may be some protections there as well. By working with the right partners, you can help position your client to get rid of all the debts and get a fresh start.

The only other suggestion I have is shame. If you have a local news station that helps by investigating wrongs, you might be able to use the shame factor. You could also have your client start a petition on change.org to try to create pressure on the collection agency. 

Harry I am in a similar coastal Florida town and wonder the same thing.  Our peaked in 2006 and hit the bottom in 2011 and values have since rebounded to 2008 values.  A home worth 150K in 2007 in my market would be 125,000 to 130,000 or maybe more today.  Who knows what this house looks like but I would think the land value would be 30K or more

I'm negotiating one now in south Florida-was $150k (for maybe 10 minutes) now $28k. But, this is a dumpy condo conversion that was done at just the right time. These condo conversions, especially stick built 30-40 old 2 story buildings have plummeted the most, and certainly never should have sold for $150k.

Harry, this property is in Florida.   We have lost more than 1/2 of the value of homes down here.   This particular home is a log cabin, infested with termites, roof damage and more.  


My feeling is that my sellers got wrapped up in the "drain every penny & more out of your home" in 2005.  This is how they ended up with 3 mortgages against this property.

Thank you Harry and any time you are in the Tampa area, let me know and we will go out for Margaritas!

These agencies still need to get approval from the Mortgage company who hired them; meaning they're not the decision makers. They will wait for the Senior lien approval to seat on the driver position of this negotiation. Most of the time these liens fall onto their lap because the borrower filed BK (if the loan was a HELOC and not reaffirmed through Chpt 11 that debt is gone but not the lien but could take as less as %2). State laws change in state by state basis and I'm referring as in general. Given the case the property goes to foreclosure everyone loses; Servicers get nothing, Junior liens wiped, Sr. Lien needs to fight its way through the court auction and pay all foreclosure fees that is the reason a foreclosed property looks as a hunted house. Thereafter, as a REO property the investor has been stripped in the foreclosure process has not money for marketing.

With all that said, I would suggest Chapt 7 BK which provides a brand new start. 


The reason I stop to clarify is because "your post is confusing and you contradict yourself up as I seen before". 

You mentioned  "many states are non judicial trustee states" unless you have a big list, by all means name it. 

Evidently you don't know about REO and I'm sorry but can't take the time to explain that process to you.

Chapter 11 is extremely common for regular consumers. I'm not sure whether is not common or not in the state you are in but generally is meant to pay your debts back. 

Driver position; mean will hold the sale hostage 'til they wait what they want. 

I didn't understand a thing you said about the collection agency and I'm not intending to get clarification of your explanation. Should you not be clear how to negotiate with them please read my comment again. Also, kindly go to their website and read what they offer. They don't buy debts they offer their service to collect.

If you thing you are the guru and your ego in getting in the middle here then I'm sorry.

Good day,

Angel:  What Ron said made absolute perfect sense to me.   I feel you are being defensive for no reason.  Ron attempted to explain and correct your possible mistakes.    Re-read what he said.  I have lived in both NJ & FL, Chap 11 is never used by consumers..........only those that are self employed or for a corporation.    Chap 7 will clear off all debts...Chap 13 is a pay back arrangement with the Trustee.  This said, it could be different in the state that you live in but is not the norm!  All debts in a Chap 7 are wiped out unless the company fights it.  The only debts not wiped out are child support, back property taxes and IRS back taxes.

@Terri Barrow .... and Student Loan Debt

WOW!  Interesting reading here.  I thank everyone for their advice & opinions.


After dealing with this file for a very, very long time.   I wrote a hardship letter on behalf of the seller and he signed and we have sent it to CBCS.  That said, they won't budge on what they want.  I have advised our client that he needs to seek legal advice at this time.  As much as I HATE to give up, I am on this one :(    CBCS is a known cut throat collection company.  They insist on their deal only and even though we went back to them with a reasonable offer, they will not budge.  I will wait and see what my seller decides to do!


Terri Barrow

Keller Williams Realty



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