First and 2nd mortgage questions after discharged chapter 7-How to get loan modified+

[BANKRUPTINVA]

Sorry-have not been able to check back for 2 weeks- yes they are pretty bad mortgages. But as many know on this site-you do what you have to do to survive for as long as you can. My first is based on libor and based on the current 6month libor-it will continue to go up every 6 month- for the next few years-if libor goes up more then I will hit my max of 12.99- right now it will go over 10% within a year; after the 2 rate changes.

I am in talk w/ both companies to get the deal modified-but no response as of yet.

A friend advised me since I didnt re-affirm and the debt was discharged- Why pay at all on the 2nd mortgage? The are not going to buy out a 242k first mortgage just to try and recapture their 100k 2nd mortgage. The budget would be tight forever but I could most likely survive if the mortgages stayed the say or went down a few hundred a month- when the first goes up , I'm a goner.

[BANKRUPTINVA]

First Mortgage Company Called Today And Said Forget It- They Won't Do Anything To Help. And That Was That- Could Care Less..of Course.

[BANKRUPTINVA]

Still holding on - just barely- I did end up getting those modifications-

Well I'm still holding on to the property. After many, many months of pain ,lies, agony, etc- I took my situation all the way up the corporate ladder to the CEO of Ditech and Everhome (opteum sold us when they went out of business)
Ultimately I did get both loans modified. It was nearly impossible but I did get it done. Caused me a lot of stress and stress related medical issues that still haunt me..

It helped somewhat but I continue to struggle. Common sense, I should have walked away but my family didnt want that option and still doesnt.

2nd mortgage company now 4 months past due- hasnt done anythihng yet- way upside down- do you think in this economy that they will do anything or will they let it sit?

1st is behind but just 2 payments and will continue to get caught up w/ them every couple of months then fall behind again..

do modifications take away any of my bk rights - to walk away at anytime and not be perused for a deficiency balance- I'm pretty sure I still can. Again, I wont but just want to know my options.
Thanks.

[keepmine]

If you didn't reaffirm those mortgages, you can walk away without any liability for a deficiency balance.

[BANKRUPTINVA]

nope, never did

no, i never reaffirmed- but both loans were modified after bankruptcy-which was nearly impossible because they both stated they didn't do that but they did...

I have re read the modification papers to see if there was some hidden small print about reaffirming but i didn't see it,

Could they count a modification as any type of reaffirmation?


Could it be that the 2nd mortgage isn't going to do anything. Ditech- being a part of GMAC is in its own world of hurt right now- and just barely held on due to the 5 billion in bailout money it just got by becoming a bank..
I was really rooting for them to fail. That would have been great- maybe like indymac- then the government would have taken them over and everyone would have gotten new better terms..

but of course they got a bail out- like everyone else...

They would have to buy out my 242k first mortgage in order to foreclose , right?

Would they in this environment? It may be worth 275k..
i owe them a 100k...

[keepmine]

Modification has no bearing on your bk. If you didn't reaffirm, you can wal with no liability.

[hereforinfo]

Even if the 2nd doesn't foreclose, they will forever have a lien on your house. If you ever need to sell you won't be able to without paying that off (pluse all the late fees and interest). Or, if 5 years from now you still own the home and the market recovers and your home value goes way up, they could/would foreclose then. There's also the possibility of deficiency judgements, etc.