Help, post bk7 settlement offer not accepted?

[famlena]

I offered my 2nd (HELOC) 11% of $150k to settle post chapter 7. It's been 2 weeks and my settlement has not even been assigned to a negotiator yet. They said they'll send for a BPO but I have not heard anything. How long does this process typically take? I also have my 1st mortgage with Chase & was declined a modification because I still had equity. The BPO done by the
1st mortgage indicated that the market value is more than what I currently owe on the 1st by roughly $20k. When the 1st & 2nd combined I am underwater by $100k.
It seems the 2nd is not motivated/interested in accepting or countering my offer. They were the one that initiated the foreclosure. I've been in foreclosure since Aug 4th and am anticipating a sale date in late Nov. I am in CA. HELP!!! What should I do? Any advice is very appreciated. I do not want to lose my home. I can only manage the 1st but not the 2nd too. I am 5 months behind on the 1st ($18k) and 7 months behind on the 2nd ($9k).

[biotechsolution]

unfortunately the 2nd mortgage always had the option of foreclosure.
if they think there is any equity they will definitely go forward with
the foreclosure.

[OhioFiler]

You are discharged and behind $27K on your monthly payments? I'm surprised the 1st mortgage isn't foreclosing.

[albacore44]

Who is the lender on the 2nd ?? you mentioned that you approached them 2 weeks ago ?? Frankly, in this market, that seems to be a very short time to expect them to react. It is takeing many people months just to get modifications. i will assume you saved the money you did not pay for the last several months ??. If you really think its going to auction, and you want to keep it, then just before the auction date, catch up on the payments using the money you saved.

[famlena]

I have been on Chase's in-house modification and have made 5 trial payments until I got the mod denial. I have been able to save some money but not very much since I have been making trial payments on both 1st and 2nd. Both loans are owned by Chase. If I can catch up with the 2nd to avoid auction then the 1st would be next to file foreclosure.

I need to rid the 2nd so that I my payments would be manageable. I don't know if it's a good idea for me to keep calling the 2nd to request that they expedite my offer. Would they see that I am desperate and will make it more difficult?

[hereforinfo]

Do you have the $16,500 in cash to settle with them? ($115k x 11%). With there being a slight amount of equity after the first, I don't know how motivated they will be to work with you, especially if you don't have the cash to settle.

[famlena]

I do have the $17k cash. I had to provide to them my bank statement with the money in it. I am actually borrowing part of the settlement from my relative.

Since I am roughly $20k behind on the 1st how do I go about asking them to add that to my principle so that I can be caught up with them. If they do that then the value of my home would be near or under the market value and the 2nd would no longer be secured. And then if they don't settle then I can strip them in the bk 13. Any thoughts on this idea....thanks...


Discharged bk7 in Dec 2008.

[tdawg]

I know it's too late now, but can't you generally strip a 2nd in a chapter 7?

[albacore44]

Seems like theres your problem. Chase is the lender on both Loans. So I would think it would make it easier to forclose, since the 2nd is not buying out the 1st from another bank in the auction. I dont know, HMM knows more about how it works, but you cant strip a 2nd in a Ch-7 period

[famlena]

Who is HMM?

In reviewing my 1st and 2nd mortgage notes with Chase I noticed that my initials were on each page and my signature is on the very last page of my 1st mortgage note. However, on the 2nd mortgage note my signature is only on the very last page but no initials on any of the other pages. Those other pages contain the terms of the 2nd mortgage. So, would the terms on the 2nd note be valid? Because there's no initials on it so Chase can just make up any terms they wanted. I do not know what a typical 2nd (HELOC) note would be like, is this common practice for them to not have initials on any of the pages with the terms except for a signature on the very last page?

[LSUTiger32]

Any advice is very appreciated. I do not want to lose my home. I can only manage the 1st but not the 2nd too. I am 5 months behind on the 1st ($18k) and 7 months behind on the 2nd ($9k).

I totally understand about not wanting to lose your home and I am hurting for you but this statement makes no sense. You can handle the first but you are $18,000!!!!! behind on it????

[albacore44]

Who is HMM?

In reviewing my 1st and 2nd mortgage notes with Chase I noticed that my initials were on each page and my signature is on the very last page of my 1st mortgage note. However, on the 2nd mortgage note my signature is only on the very last page but no initials on any of the other pages. Those other pages contain the terms of the 2nd mortgage. So, would the terms on the 2nd note be valid? Because there's no initials on it so Chase can just make up any terms they wanted. I do not know what a typical 2nd (HELOC) note would be like, is this common practice for them to not have initials on any of the pages with the terms except for a signature on the very last page?

Sorry its HHM. hes a moderator.

As far as the 2nd, i re-fied mine several times. I dont ever remember initialing any pages. That might just be a custom some Lenders/notaries like to see. in my cases, the documents would be fed-exd to my house, and i would go to a mail boxes etc. store and notarize the required documents and send them to the Lender.

[famlena]

My 2nd is purchased money I got it when I purchased the home. I've never re-fied it.

What I meant about able to manage my 1st mortgage is that after Chase help arrange for me to catch up then going forward I would be able to pay my mortgage. I have a 3/1 ARM and by the beginning of the next year my rate will reset to whatever the Libor rate is. Right now the Libor rate is very low so my monthly payments would actually decrease quite a bit. It is currently $3100 but would adjust to $2100 according to a loan agent I consulted. My 2nd is $1k at 9%. I don't quite understand my HELOC terms. I will constant with a loan agent next week. From my own understanding it would not decrease because it is based on the Prime + some index.

I just hope to extinguish the 2nd since my home has depreciated nearly $100k.

[LSUTiger32]

My 2nd is purchased money I got it when I purchased the home. I've never re-fied it.

What I meant about able to manage my 1st mortgage is that after Chase help arrange for me to catch up then going forward I would be able to pay my mortgage. I have a 3/1 ARM and by the beginning of the next year my rate will reset to whatever the Libor rate is. Right now the Libor rate is very low so my monthly payments would actually decrease quite a bit. It is currently $3100 but would adjust to $2100 according to a loan agent I consulted. My 2nd is $1k at 9%. I don't quite understand my HELOC terms. I will constant with a loan agent next week. From my own understanding it would not decrease because it is based on the Prime + some index.

I just hope to extinguish the 2nd since my home has depreciated nearly $100k.

I hope you get to keep the house, but I also hope you are not kidding yourself about it either. There is nothing wrong with getting something smaller and working your way back up.

What perecentage of your take home pay is your house?

[relief13035]

Here's the best number to call:

Chase Executive Resolution Dept.
Carla Brantley 866-605-9253 ext. 3682