Replies to This Discussion

Permalink Reply by Laura Marshall on August 16, 2010 at 3:04pm

I had something similar with Chase...same situation. It can be handled much easier if it does not go to collections, They would have settled for $3000....but by the time the collections people got it...it was $15,000. If the 1st and 2nd are both Citi - possibly the negotiator can pull it from collections if it goes there. ( I know that Chase will) If it is a different 1st..maybe they will take a partial payment. I never like my clients to pay....but sometimes it is worth it to keep it out of the 3rd party collection comapnies.

Permalink Reply by Jennie Blackburn on August 17, 2010 at 4:11am

I'm with Laura - do whatever you can to keep it from begin charged off and thrust into the hands of a collection agency. They are staffed with Rabid Zombies who are relentless in their pursuit of your client's flesh. I have one like that - GMAC sold off a bundle of loans to Greentree and my seller is paying just enough to stay under the 90 day window to avoid charge off and Zombie Land. If you contact me offline - I have a contact at Citi that you might try.

Permalink Reply by Ray Snook on August 17, 2010 at 5:16am

Thanks Jennie

I will send message after you friend me. :-)

Jennie Blackburn said:

I'm with Laura - do whatever you can to keep it from begin charged off and thrust into the hands of a collection agency. They are staffed with Rabid Zombies who are relentless in their pursuit of your client's flesh. I have one like that - GMAC sold off a bundle of loans to Greentree and my seller is paying just enough to stay under the 90 day window to avoid charge off and Zombie Land. If you contact me offline - I have a contact at Citi that you might try.

Permalink Reply by Ray Snook on August 17, 2010 at 5:50am

If the 2nd goes to charge off and this ends up in foreclosure, since it is purchase money in a non recourse state does this loan get wiped away? I know that it will if it is still the original Citi 2nd, but if it is bought by a third party is it still subject to non recourse and forgiveness of debt act?

Jennie Blackburn said:

I'm with Laura - do whatever you can to keep it from begin charged off and thrust into the hands of a collection agency. They are staffed with Rabid Zombies who are relentless in their pursuit of your client's flesh. I have one like that - GMAC sold off a bundle of loans to Greentree and my seller is paying just enough to stay under the 90 day window to avoid charge off and Zombie Land. If you contact me offline - I have a contact at Citi that you might try.

Permalink Reply by Amiee Kane on August 23, 2010 at 3:45am

I have been working a file with them for about a year. We got extensions, then they contact the seller to pay money threatening to send the file to collections, where they said we could still negotiate the SS but there would be all of these attorney fees to negotiate on top of the balance. He paid once, but didnt pay again when they contacted him after that, and told them to do whatever they want to do with the file. They sent it to the "recovery" dept where I got a direct contact who would work the file for the closing. She worked the file until we lost our buyer and she said she had no way of knowing when it was going to foreclose. I call towards the end of the month, every month, and its still on her desk, waiting for an offer. This has been going on for a good 4-6 months. Who knows how or why its still sitting there, but he isnt getting collections calls nor is it being sent to foreclosure. I hate that they bullied my client into throwing "good money after bad" for apparantly no good reason. I think its just a matter of how invested your client is in the process and where they are financially, and emotionally as to weather they are willing to risk the threatened action, but be aware, its not always a valid threat. This is an interesting article a co-worker of mine just sent over about Chase's newly implemented List Assist Program to try to comply with the HAFA process. http://bit.ly/dstmRZ

Permalink Reply by Wendy Rulnick on September 6, 2010 at 3:45am

I would avoid letting the file go to charge-off anywhere. Like Laura says, it will go from bad to worse in a minute!

Permalink Reply by Jackie Cockreham on September 9, 2010 at 6:01am

If seller can afford the monthly payment, would it better to keep the loan current with Citi while finding a buyer and going through the short sale process (to avoid what seems to be a roadblock if it goes to Collections?)