Settling a 2nd - Timeline?

[pcn]

What sequence of events did you follow in your settlement process?

Pay 1st & 2nd on time
File ch 7
341 meeting
Discharge
stop paying 2nd
negotiate with 2nd

Or, did you stop paying before you were discharged? If so, when did you stop paying? Was your 2nd required to be included in your means test calculation to qualify?

We are 30 days post 341 and want to start saving towards settlement, but worried that if we stop paying before discharge we could somehow jeopardize our discharge. All comments are very welcome!

[nichole04]

I plan on trying to settle my 2nd mortgages after the discharge. I will be filing next month and will be current on all of my mortgages the day of filing. I plan on stop paying the 2nds after we file. I will withdraw money from my IRA account to settle the 2nd mortgages and will be saving more in the meantime by not paying my 2nd mortgages. I don't know if it matters how long you wait after discharge since you are no longer liable for the debt personally. I would think as long as you have the money to settle and your house is underwater, the 2nd mortgage companies would be willing to settle any time after discharge. I am interested in what others on the forum have to add to this topic as well.

[Mensa1]

We are 30 days post 341 and want to start saving towards settlement, but worried that if we stop paying before discharge we could somehow jeopardize our discharge. All comments are very welcome!

There will be NO effect on your disch by halting pymts on the 2nd mtg.

Has 2nd mtg holder contacted you as a result of the Bk filing? Any dialogue there a all? I wouldn't plan on having any with them, if it were me.

[pcn]

There will be NO effect on your disch by halting pymts on the 2nd mtg.

Has 2nd mtg holder contacted you as a result of the Bk filing? Any dialogue there a all? I wouldn't plan on having any with them, if it were me.

Why not? Why would the atty say that they could ask for a relief of stay? Not trying to be offensive, just trying to understand why we are hearing different advice. It probably is me interpreting things incorrectly... Thanks for your continued input!

[pcn]

[QUOTE=nichole04;391522]I plan on stop paying the 2nds after we file./QUOTE]

After you file, or after you are discharged? I know it's only 2-3 months between the two, but that's 2-3 months of payments I could have to use in settling. Thanks!

[albacore44]

Funny you should ask. My 341 was last monday. Trustee already filed notice of no distribution. My payment on my 2nd was due wednesday> I have it in my mind that I'm stopping payments now. I spoke to them last week and they no nothing of my BK. They are on my creditor list, but they probably did not process their notification. If your underwater (Like Me) I dont think would motion to lift the stay. I guess I will be finding out.

[nichole04]

I plan on stop making payments after I file because I will have the automatic stay and if I am current going into the bk the 2nd mortgage companies will not start a foreclosure automatically. It would take a minimum of 3 missed payments or so to even consider it and since my house is underwater I don't think they would be so quick to jump the gun. I will save all of the money I would be spending on payments to the 2nd mortgages and if any of them try to do anything before I settle I will just pay them the money in the bank to catch up my payments. I think I will ask my bk lawyer this question when I talk to him again just to be sure.

[pcn]

It would take a minimum of 3 missed payments or so to even consider it and since my house is underwater I don't think they would be so quick to jump the gun..

Good point, this is my hope too.

I will save all of the money I would be spending on payments to the 2nd mortgages and if any of them try to do anything before I settle I will just pay them the money in the bank to catch up my payments.

My plan as well.

I think I will ask my bk lawyer this question when I talk to him again just to be sure

Yes, yes!! Please do. It would help me sleep better to know that at least one other person thinks as I do.

[nichole04]

I certainly will let you know what he says. I hope he agrees with me

[albacore44]

I plan on stop making payments after I file because I will have the automatic stay and if I am current going into the bk the 2nd mortgage companies will not start a foreclosure automatically. It would take a minimum of 3 missed payments or so to even consider it and since my house is underwater I don't think they would be so quick to jump the gun. I will save all of the money I would be spending on payments to the 2nd mortgages and if any of them try to do anything before I settle I will just pay them the money in the bank to catch up my payments. I think I will ask my bk lawyer this question when I talk to him again just to be sure.

My plan exactly. Let us know what you find out

[Shuganon]

341 on Wednesday. C7 Trustee has filed no distribution. I was 12K over median and qualified on the means test due to 2nd mtg. I do not intend to stop paying the second until discharge and close. Maybe I am being too cautious, but we are only talking 2 mos payments (not enough for me to jepordize the whole BK experiance). Also, I plan on offering a very small amount for removal of lien and my savings is substantial.

[pcn]

but we are only talking 2 mos payments (not enough for me to jepordize the whole BK experiance).

What specifically would jeopardize it?

[albacore44]

So I just got off the phone with my attorney, and he said, your past your 341. I have never had a 2nd ask for relief from the stay, so stop paying it now. So thats what I'm going to do. Payment was due last wednesday.

[pcn]

So I just got off the phone with my attorney, and he said, your past your 341. I have never had a 2nd ask for relief from the stay, so stop paying it now. So thats what I'm going to do. Payment was due last wednesday.

Way to blaze the trail! I'm with you!

[Shuganon]

What specifically would jeopardize it?

I do not know what could go wrong, but I am not willing to find out. Also, my first and second are with the same bank. Not sure if that matters.