Hi Everyone,

I have a client in California that did a short sale in 2008, prior to the main part of the crisis and all the extra protections that California has put in place since.

At the time, the client agreed to remain liable for the balance of the loan ($94,000) and successfully got the lien released. They have been paying interest only on the loan ever since - approximately $18,000 in total. 

They are now in additional financial distress and have asked me to help negotiate a settlement with PNC.  Since this won't be an actual short sale (that happened a long time ago) does anyone have any recommendations about how to approach PNC? Any help or experience would be greatly appreciated.

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Sharona Byrnes

Debt Settlement Services are highly regulated in some states so be very careful about your involvement. If you are not an attorney or licensed specifically for debt settlement in your state then you should not touch this with a 10-foot pole.

You may advise this client to call PNC Bank direct to negotiate a cash lump settlement.

CLC Consumer Services Co
PNC Bank -Recovery Department
Mailstop: P5-PCLC-A1-R
2730 Liberty Avenue
Pittsburgh PA 15222
Phone: 800-729-4810

I had a previous client report back to me last week that they successfully negotiated an $11,500 lump cash payment to settle in full their $99,000 PNC balance. (11.60%). This scenario was 6 months from SS closing, no promissory note and no payments on any post-closing secondary account. This required those borrowers to submit a full hardship financial package very much like the short sale submission.

Sharona, your clients can do this on their own and that is what you should advise them to do.

I think the other statement here is true don't do it for them ,they will have to pursue it all.  Banks will reduced it after the short sale is done, or if they trouble are that bad BK might be best get rid of everything that way ,which a lawyer is needed for.

Thank you - I'm not going to do it for them, just wanted to advise them as to what was possible and how they should do it. In addition to being a client they are a close, personal friend, so wanted to give the best advice possible.  Thanks to you both!!!

I have had PNC demand outrageous amounts like $45,000 on a $60,000 loan when we offered them $3,000. However, when we doubled it to $6,000, they took it. I've used this approach with 3 PNC files last year. So, I would not think that your previous clients would have to offer anything anywhere near the unpaid balance. But you and I are not lawyers, and your agency ended with these buyers when the transaction closed. I would refer them to a lawyer to handle the negotiations, but it wouldn't hurt for them to give it a go-around for starters.

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