The last time I looked, The Money Store had ceased operations in August 2000. First Union Bank took over servicing of any Money Store loans that had not been sold in the secondary market.
The word on the street also says that First Union Bank is ceasing residential mortgage operations to become more attractive to a takeover suitor.
If First Union still holds the (old Money Store) paper, either they will be very motivated to sell a non-performing note, or, they are so busy with other operational issues that this note may have already been written off.
During their active operations, The Money Store originated a lot of FHA Title I loans. If the 2nd mortgage for this property happens to be a Title I loan, then First Union can always submit an FHA insurance claim after default. There may be no motivation to discount this type of mortgage note.
You have nothing to lose by offering to buy the note at your price.
Has anyone had any luck discounting a 2nd mortgage with The Money Store?
A seller called today who is 3 payments behind on her first mortgage and 3 payments behind on her 2nd mortgage to The Money Store. Neither lender has started the foreclosure process yet. The seller said there is no way she will be able to bring the loans current and will probably let it go into foreclosure.
The home is worth about $130,000 and the 2 loans total about $150,000 so the only way this deal will work is if The Money Store will settle for about $1,000. If the 1st does foreclose, by the time the foreclosure process is complete, The Money Store would get wiped out because the back payments, interest, penalties, fees, etc., of the 1st would probably exceed the value of the home. Does anyone have any suggestions on how to approach The Money Store considering the first has not yet started foreclosing? Will they be more motivated to deal after the 1st starts foreclosing?
One other note: the seller is divorced and the home is in her name only. As part of the divorce decree, her ex-husband is required to pay half of the 2nd to The Money Store. He is still paying his portion (he is sending a check to his ex-wife who is then sending it to The Money Store).
I would appreciate any comments on how to proceed or if there is any way I can help this seller.