Should I settle with second mortgage lender for 10 cents on the dollar or let them chase us?

Asked by Rachel Wentworth, Las Vegas, NV Fri Jan 30, 2009

This is actually a follow up to a previous question I asked regarding whether lenders are pursuing deficiency judgments in California. The second lender is willing to settle our loan for 10 cents on the dollar. If the first lender forecloses and the second is wiped out, I know the second is a recourse loan and the lender may pursue a judgement and/or collection. Should I just settle and get it over with, or let them try to chase us? We do have some assets (not much) but are trying to determine whether we should also have an asset protection strategy in place.

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Tolf Consult…, , Queens, NY
Tue Feb 23, 2010
Since it seems you're trying to keep your home, it is definitely recommended that you keep your home for 10 cents on the dollar, it's a great settlement. However, make sure to get a hard copy of the settlement letter faxed or mailed. Make sure the due date on the settlement letter is ahead of the actual settlement. This will help you file a release of lien from the second mortgage that was on your home.
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Skellington, , Seattle, WA
Thu Sep 3, 2009
I would absolutely take that deal. 10 cents on the dollar is great. if you don't pay it then you'll never be able to get another mortgage loan until its paid, and eventually they will get a judgement against you which allows them to even garnish wages or bank accounts. pay the 10% of the debt and run. Then sign up for credit repair with a great company and get the whole thing removed from your credit report.
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M Soliman, , Downtown, Los Angeles, CA
Fri Jan 30, 2009
its an obigation you signed on the dotted line for. Its also the predatory piece of the problem impacting American homeowners. I would in a heartbeat - but tough call!
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Dallas Texas, Agent, Dallas, TN
Fri Jan 30, 2009
Contact an attorney, keep in mind if you resolve the issues would in time increase your credit scores vs. long term damage. You might want to also speak with CPA
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