Need suggestions on plan

[overspent]

Stopped CCards payments last months. Missed 1st mortgage payment and HELOC this month. Plan to contact 1st mortgage lender to do mod, then the HELOC to do mod. Finally, will file chapter 13.

If 1st mortgage lender won't do mod, let them foreclose then write off the HELOC and the CCards.

Any suggestion or foreseen trouble with this plan would be welcomed.

Thank you.

[lrprn]

Stopped CCards payments last months. Missed 1st mortgage payment and HELOC this month. Plan to contact 1st mortgage lender to do mod, then the HELOC to do mod. Finally, will file chapter 13.

If 1st mortgage lender won't do mod, let them foreclose then write off the HELOC and the CCards.

Any suggestion or foreseen trouble with this plan would be welcomed.

Thank you.

I hope you aren't planning on filing very soon, because getting your first lender to agree to a mod, and then getting your second to agree to a mod is going to take a long time....if it can even be done.

When are you hoping to file? And what's your backup plan if either lender won't agree to a mod?

[jwmc1]

Is your home worth what you owe on your 1st?

[JimKutkowski]

DO NOT DELIBERATELY GO PAST DUE ON A MORTGAGE TO TRY FOR A MOD, HAMP IS VOLUNTARY, THE BANK IS NOT REQUIRED TO MODIFY YOUR LOAN!

You may now go back to your regularly scheduled thread.

[overspent]

Thanks for the replies

I am not ina hurry to file, will eventually file maybe April next year. I want to use chapter 13 as the last resort. I want to buy time with the CCard companies to do the mod. The house is appraised at 280,000 by an appraiser but comparable fire sale price would be 80% of the balance on the first (255,000) so I don't think the HELOC will foreclose. I simply has no money left over to pay mortgages for a couple months not intentionally skip the morgage payment.

If neither lender want to do mod, they can have the house, I can rent cheaper. I just want to have a clear budget before I file. I think it's to their advantages to do the mod. I just want to know the risk of this overall plan.

[justbroke]

I waited on a modification, and of course they approved it 3-business days before the scheduled sale, but 1 day after I filed Bankruptcy. Oops! They wouldn't talk to me after I filed Bankruptcy.

In any event, Jim is right. There are no guarantees. You must be willing to walk away if things do not work out.

[overspent]

Thanks for the advice

I'll be one-day late tommorow. So typically I'll have 7 more months of rent-free ( 3 months to Notice of Default + 4 months to foreclosure). By that time unpaid balance on my first will be at least $268,000 not including the late fees, just interest and tax. Currently there a short sale listing on a 2000 sqft house for $200,000 (nobody buys at $250,000) and my house is 300 sq ft less so my chance is good that they'll do a mod. I figure if the balance on my first get high enough, the HELOC will become unsecured and be stripped when I file.
I am hoping this plan will work.