Who here has settled a 2nd after a ch7?

[StacyAnn]

I got simiar terms with GMAC, although through the Home Affordable Program.

Dropped my payments form $1800.00 per month to $1055.00 per month.

The above new payment is for the 1st 5 years and then it goes up 1% after that not to exceed a certain rate which I have not seen yet. Looks like the same as

Then, I applied for modification on the 2nd and they offered me a reduction from 7.95% to 5% fixed for I think 15 years. My payment only went down $40.00 a month, but now I pay a total of $1295.00 for both! Much better than the $2100.00 we paid before!

I was told that we are unable to actually file BK until the trial payments are complete and the loan is permanently modified.

So..it looks like you got on home affordable also Relief....good job!

[albacore44]

Albacore - you are also with Citi right???
I'll get you right to the Executive Response Team - you won't have to hassle with loss mitigation. Straight to the TOP baby....

Cool.....here is my situation. my 1st with Citi is 4.75% 7 years exp. May 2012 interest only option expires 2015. now thats really not that bad but it's a time bomb in the future. My big problem.........like yours is HSBC Heloc right now at 4.5%, but as soon as the federal reserve starts raising rates...ohh crap. So you can see i need to fix some things

[StacyAnn]

Albacore- can you prove that you have some type of financial hardship / loss of income? Do you have a Federally backed loan such as Freddie Mac or Fannie May? If so, apply for home affordable. If not, are you late on your payments or living off of credit cards to pay your mortgages?

I was three months behind before they would consider helping me, but now with the home affordable, you don't need to be late.

you should be able to talk them into refinancing you into a fixed rate for 30 years. I'm not sure where you are BK-wise as I haven't looked over your profile...

[spidge]

Great thread.

I am 6 months behind on my 2nd and would like to file ch 7. Is this possible? Then I could settle with my heloc (BofA).

By the way, a financil hardship is required most of the time for a modification but if you owe twice what you owe on the 1st alone the 2nd would probably jump at any settlement. I would think. Like I ask the collectors from BofA, "What would you do?", but they ignore me and stay on script.

[albacore44]

Albacore- can you prove that you have some type of financial hardship / loss of income? Do you have a Federally backed loan such as Freddie Mac or Fannie May? If so, apply for home affordable. If not, are you late on your payments or living off of credit cards to pay your mortgages?

I was three months behind before they would consider helping me, but now with the home affordable, you don't need to be late.

you should be able to talk them into refinancing you into a fixed rate for 30 years. I'm not sure where you are BK-wise as I haven't looked over your profile...

No fannie/freddie.......will be filing in January. yes loss of income, home way upside down, stopped paying CC's to keep mortgage paid.

[relief13035]

Yes mine was Obama Making Home Affordable.

[albacore44]

Yes mine was Obama Making Home Affordable.

how did they do that with you being upside down due to your 2nd ??

[StacyAnn]

Albacore...If you are filing for BK anyways...you might as well stop paying your mortgage. There is no sense in racking up more debt for BK in order to keep your mortgage current when you can't afford it anyhow. The mortgage company, if not participating in Home Affordable or similar plans, will not work with you unless you are at least two months behind. It is better to get your mortgage to a sustainable level, and besides, you will have plenty of time before they forclose, it costs too much for mortgage companies to forclose in this economy. At least this is what we did and it helped us tremendously, now we can afford to live again...after three years of "catch up".

[Bubblebowl]

will you receive a 1099 for negotiated HELOC for monies forgiven?

[hereforinfo]

will you receive a 1099 for negotiated HELOC for monies forgiven?

Yes. If the money wasn't used to purchase the property or make significant improvements to the property, the forgiven amount could be considered taxable income, ineligible for the mortgage debt forgiveness relief act. Although, I'm not sure if that applies to a mortgage discharged in bankruptcy.

[pcn]

As I understand it, if you are insolvent at the time, the forgiven debt tax issue isnt really an issue. And since most who file bk will be insolvent, the issue isnt an issue.

[dspii]

I have my 1st and 2nd with B of A and per my lawyer, planned on reaffirming both since I'm not late and want to keep my house. I too wanted to "negotiate" my HELOC, 'cause I don't want the grief of varible interest rates.

My first is OK 5.25%, but I have seen the HELOC up to 10% (currently 6.75). My hopes were to reaffirm or negotiate a low fixed interest rate. I would like to be able to pay off the second before hell freezes over. Is this possible? You know if I could strip the second in my C7...that would be OK too. I will research some more and watch this thread closely.

[StartingOver08]

Do NOT reaffirm your second mtg. Check out Relief's most recent posts on removing her second mtg - she did not reaffirm.

[mmertens67]

We settled a third mortgage with Bank of America after our discharge for 1.5% of the balance. They were completely unsecured, so that gave us leverage.

[mysticspirit25]

settling with Citi

A buddy of mine has his 1st through Wells and 2nd through Citi, he BK7'd and stopped paying the2nd as soon as he bk'd. He is current on the first. He offered to settle for $4000 the amount of his tax refund for this year for Citi to release the lien. He owes 211k to Wells and Citi appraised the home at 215k, so they realize they will get nothing if they foreclose. They sent all kinds of foreclosure notices and sent it to a local atty who sent it back to Citi and refused to foreclose. I helped him contact the Exec response unit and they are working on settling it. Loss Mit is useless, they will tell you they dont "settle", but they do.