How do I get GreenTree to release me from balance of the loan?

Hey all, 

I'm a seller at the tail end of our short sale, (i hope)   We have approvals from both banks, however with greentree my second they  agreed to take %5 of the sale prices, however the approval letter says that they will not be releasing the note, or endorsing it as paid.  

Basically this means they can still sue me for the amount right? 

Does anyone have any experience with this as to what options I might have to prevent this? 

I thought I had read that they would take %30 of the loan to write it off?  Currently the difference between the 5% sales price and %30 of the 2nd note is only about $5500.  

I was assuming that they would issue a 1099 for the difference and thereby not be allowed to comeback and try to get the money from me, is that correct?  Is it possible they would elect not to send the 1099 and then come after me instead?  

I appreciate any advice I can get on this as to what my options are and possible outcomes? favorable or not?

Thanks for your time.

Tags: green, sale, short, tree

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Usually they'll forgive it if they get 30% of the balance as a 2nd.

20% to release the lien if I remember correctly.

Talk to your CPA about the 1099, but a 1099 is typically sent if the deficiency is forgiven. If you are to repay the debt, there is no recordable loss yet to the lender. In addition, if the lender purchased a large pool of defaulting loans, there really isn't a loss to begin with, as they were purchased at a great discount.
I thought the 30% would apply. I brought up the option of paying that way and they told me they are "familiar with doing that in SOME cases", but it would not apply to our loan?? They told me they want 70% of the loan for it to be forgiven. about $54K on about $77K loan.

I'm guessing my only option is to let it go to collections and try to settle with them for less when I have the money to do so? They will not be able to garnish any wages from me.
Yeah, its just a negotiation for them.

Once it they release the lien it is just unsecured debt. Most of the time that gets settled for 10-20 cents on the dollar at the most
Give them two choices: offer them a cash settlement for a full release, or file BK. Their choice.
Green Tree will release the lien on the property and the note itself on a second for 30% of the unpaid balance. I completed a transaction with them on those terms approximately one month ago.
Ernie, I did ask about the %30 Actually it was based off of YOUR post that I brought it up to them, LOL. Kudos for the advice BUT! they said %70, made it sound like I was lucky to get that. They said they do %30 in some cases. not mine. The difference between our %5 sale value $17.5K and %30 loan value $23.5 was only $6K, I could have borrowed that maybe, or worked something out. But, if they come after me demanding $60K as much as I hate it I'd have to do a BK and lose them and the other Debt that I have in the process.
Hey Casey -

Sorry to hear it, man! There is a REASON that Green Tree has thousands of customer compalints!

The boss man of the short sale department in Tempe, AZ is George Dumler. His email is George.Dumler@GreenTreeFinancial.com

I'd suggest that you email him with a thoughtful, professional note, carefully laying out the complete situation, your loan #, what your loan position(s) is /are, who you're working with, timing, efforts so far, results so far, quandaries, and possibilities that you've been made aware of. Make it a very complete summary - don't make him have to seek information. Lay out the facts. No blame. No upset. Think it through, very cogently.

Ask him to differentiate as to why your case differs from others settled more favorably. Ask that he share his thoughts on possible ways that you could reach a win-win settlement as opposed to declaring bankruptcy and his firm receiving nothing. (;-O

Good luck!

Ern
Yeah, Greentree does stink...

Our experience with them as well
I just finished a short sale with OneWest in primary and Greentree in secondary. They are awful. They wouldn't release the deficiency. The seller was contributing almost $3000 at closing and they still wouldn't release it. They are not fun to work with.

They spoke with an attorney who said they can file BK if Greentree decides to pursue later.
I'm kinda wonderin' what happened to ol' Casey here, as I gave him an extensive private reply and he has now disappeared.
Ernie,

Thank you for your help. you were VERY helpful, I was going to reply but I've been swamped, trying to move out of our house, wifes 9 months pregnant, I sell halloween apparel so this was my busiest week of the year before trying to move out of the house with a preggo wife all the same week. LOL ... busy busy week.

I think we are proceeding with your advice from your last email though. I really really appreciate the time you took to look at our situation.

Casey, after the short sale, if GT does come after you, you have a much stronger position to settle because they no longer have the leverage of the property or sale.  Tell them you'll give them a few thousand to settle.  If they say no, tell them to pound sand.  Other than getting a judgment, they can't force payment.  Obviously talk to an attorney, but the gist is clear:  They can't make you pay.

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