Down in the dumps - want out of this

[BoxerLover]

I just want somewhere to vent for a minute, maybe to some people who possibly understand/relate. I still have 4 years left in my chapter 13 and the only thing holding me in it is my $7,200 of arrears on my mortgage. This is such a bummer. I ran into some good luck and settled my second mortgage for a very small percentage of what was owed, the satisfaction was actually recorded at the court house today, which means I have equity in my home I just wish I could get someone to give me a $7,200 second mortgage so I could pay off the arrears and convert from the chapter 13 to a chapter 7! I know it can't happen, but I sure wish it could. The lender to our vehicles, which are also in the chapter 13, have both told us they'd be willing to reaffirm our loans. It'd be so nice to put this behind us now instead of 4 more years Thanks for listening.

[charmd]

Sorry to hear about your first mortgage, but the good news is you were able to settle the second. How did you do that? I have been trying to work with my second mortgage and they keep telling me I have to do a loan mod with the first before they will work with me on the second.
Maybe this is not true???

[BoxerLover]

Honestly, I just called in to make a payment and they said "what could you afford for a one time settlement amount". I low balled it, I owed about $32,000 and said I could send $1,500. I sent it on 3/29 and the satisfaction was recorded at the local court house today! I was behind 4 or 5 months (payment was less than $200/mo).

[Freddy03]

Honestly, I just called in to make a payment and they said "what could you afford for a one time settlement amount". I low balled it, I owed about $32,000 and said I could send $1,500. I sent it on 3/29 and the satisfaction was recorded at the local court house today! I was behind 4 or 5 months (payment was less than $200/mo).

Are 1st and 2nd different lenders?

[kjrmom911]

boxerlover..no personal experience with this, but a friend of mine worked with her lender to get her late payments (and it was way more than your amount) placed at the "end" of her mortgage with her current mortgage holder. I don't know if this is an option and in my opinion isn't as good as a true loan modification but it seems silly to stay in 4 more years of a chapter 13 if thats all thats holding you there. What does your lawyer say?

[BoxerLover]

Freddy03 - Yes, they are different lenders. My first is through Litton Loan and the second was Ocwen.

Kjrmom911 - I tried calling Litton to see if I convert if they'll work with me, they say they can't talk to me because they've hired a bkptcy firm to handle our case (all cases I guess that are in bkptcy). I call them and they say they can't advise because if I convert to a 7 they'll file for relief from stay and it will be up to Litton. So, I don't want to lose my house and I can't get straight answers from anyone, or even partial answers. I don't want to lose my house for $7,200. My attorney just said, "the mortgage COULD consider you in default and try to foreclose if you are not current at time of conversion". Ugh.

[charmd]

I am trying to do a loan mod with my first and had my attorney sign a form saying it was ok for my lender to speak with me directly.
I am in California so don't know if all states operate the same, but I would think so since lenders are nationwide.

You might want to ask your attorney if this is an option for you.
Good luck.