All Forum Posts by: Nicho Pruett

@Mario Am Thanxxx I think it’s different for each state. But although they can’t collect on the mortgage they can collect from the lien placed on the property when the mortgage was originally executed.

I’m curious though what benefit if any the lender gets from The IRS debt charge- off. -

@Chris Mason do you know?

@Stephanie P. Thanxxx a lot for your honesty. I am new at this and don’t want to insult the bank because they were very understanding of my mothers situation. Had she allowed and we realized we would have intervened before it got out of hand. What we didn’t know was that she was in the beginning stages of Alzheimer’s. No excuse just an explanation.

In fact I am interested in renovating and renting it out. I will get an appraisal done as soon as possible. Can you tell me what type of loan product(s) I should be inquiring about to accomplish it. I’d like to shop around to see where I can get the best interest rate and have something to compare to the bank offer. When I originally spoke to the bank they were interested in continuing to work with me. I’m hoping they still are - although the person I was dealing with has since retired- my loss.

I just want to be as prepared as I can be before going in.

@Caleb Heimsoth

Nope - plenty of equity and potential. I’m going to see it as a win for me in the end. Just bittersweet that I lost something more important in the end - Mom.

@Chris Mackinlay thanxxx so much. That is the plan just wondering what my chances might be. Looks like slim to none. 😂

@Tom Gimer thanks. That’s probably what’s happening. I just found out about the issue 2 years ago and my mother was terminally ill. Dealing with that was overwhelming. If I have to pay all of it I will. The quality time with her was worth so much more than any house could ever be.

Thanxxx for your insight. I am prepared to pay and hoping for the best.

@Chris Mason not sure but definitely more than what’s owed.

 @Tom S.  Thanxxx

@David de Luna  thanxxx for the encouragement.

@Lauren B. I will look into it. Thanxxx

@Theresa Harris

Thanxxx so much

HELP - What should I expect when negotiating?

Background:

I inherited my childhood home only to find out that my mother refinanced it 15 yrs ago for $70K. She made payments (about $25k) up until about 7/8 years ago and stopped due to financial and medical issues. The loan went into default. She’d been banking with this credit union for over 40 years; so they were kind enough to not foreclose. I think they “wrote it off as a loss”. Whatever they did, the head of their debt collections told me they never planned to come after her for the money and instead would wait until she passed to collect.

Issue:

Since she stopped paying, the fees/interest have run up to more than the original loan - last I checked the total is about $85k. I am going to meet with the lender to negotiate terms and want to know what I can expect and what is appropriate/will reasonably be accepted.

I’d like for them to forgive all of the fees and let me pay off the balance that was owed at the time she defaulted.

Is this reasonable? What are my chances they’ll accept it? If not reasonable what would be?

Any help/insight is greatly appreciated.