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Just received Settlement Offer from Chase for 2nd loan...is this fraud?*

I have 2nd equity line of credit for my primary house with Chase, and has been delinquent for several months. I received a NOD...and now got this Settlement Offer (yellow letter) from Telewire Electronic Message. Wanting to confirm if this is actually from CHASE or some outside collection agency. Please advise.!

Answers:

1) Call chase and aske them if this is a valid offer

2) Would like to see their offer, but essentially, whether Chase or their agent, they are probably offering the possibility of a settlement.

If the mortgagee (owner of the mortgage) bought your loan for far less than its principal balance, it's conceivable the people suggesting a payoff would get the mortgagee's permission to allow you (the mortgagor) to settle the loan in full with what is called a discounted payoff. It's also possible the mortgagee might decide it or its agent is wrong to accept a discounted payoff.

Upshot: Just make sure that any talk of a settlement includes acceptance that your payment will be taken as "in full".

3) I received a yellow letter on my Chase 2nd for about 40 of the payoff. Of course I could not pay so nothing happened. However, the loan was later moved to the Recovery Department and I just received a 16 settlement offer. I still can't pay so I doubt anything will happen unless I can borrow money from somebody other than a bank. Heck, banks won't loan me money and for that matter, I wouldn't loan me money. It's unlikely anything will happen.

I've heard of settlements as low as 7, but the reality is they want cash and ASAP. Good luck.

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