I have my first mortgage ($450,000) and home equity loan ($350,000) now with all the added penalties from Wells Fargo. I want to offer them a settlement. What do you will the smartest way to do it. The house value probably about $350,000.
Settling a debt is nothing more than a negotiations process. You can either attempt to reach a mutually acceptable settlement based on discussion by yourself or a third-party representing you, or you could consider a legal intervention.
A Chapter 13 bankruptcy might be interesting to learn more about. In a Chapter 13 bankruptcy, the lien against the property above the value of the property may be eligible to be discharged and remove all together. This is called “Lien Stripping.”
To learn more about Lien Stripping and how it relates to your situation, please meet with a local bankruptcy attorney who is licensed in your state.