Can You Deal with 2nd Mortgage Holders?

[pcn]

[HHM]

If you can lien strip, why bother negotiating.

[pcn]

If you lien strip, you pay over 5 years. It seems like it would be in their best interest to get something up front, possibly more than what they would get in the 5 year plan. If you could negotiate the 2nd down (to a small amount), and then do a 7, it would be over quicker, no payments to worry about for 5 years. If you qualify for a 7, but have an underwater 2nd, you're stuck going to a 13 as I see it.

[bksmith12345]

If you lien strip, you pay over 5 years. It seems like it would be in their best interest to get something up front, possibly more than what they would get in the 5 year plan. If you could negotiate the 2nd down (to a small amount), and then do a 7, it would be over quicker, no payments to worry about for 5 years. If you qualify for a 7, but have an underwater 2nd, you're stuck going to a 13 as I see it.

I'm doing a lien strip with my 13. My attorney told me the 2nd becomes unsecured and just goes away. Provided I follow through with my plan.

[pcn]

Provided I follow through with my plan.

Exactly. What I am wondering is if there is a quicker way to get the same result. Maybe by bargaining upfront somehow. And then file a ch7. Did you consider a 7? What brought you to the 13 + lien strip, if you are willing to share? If I went 7 with our current underwater 2nd, we would rid ourselves of the CC debt, and have no payments, but the 2nd would follow us. Thanks.

[bksmith12345]

Exactly. What I am wondering is if there is a quicker way to get the same result. Maybe by bargaining upfront somehow. And then file a ch7. Did you consider a 7? What brought you to the 13 + lien strip, if you are willing to share? If I went 7 with our current underwater 2nd, we would rid ourselves of the CC debt, and have no payments, but the 2nd would follow us. Thanks.

Our income was too high for a 7. We also wanted to keep the house and cars. We also had a couple months of arrears for mortgage and cars. We had 160K unsecured and 75K 2nd mortgage that is being stripped. We had serious drop in income from 2007 to 2008. Our plan is $320 for 60 months if confirmed.