What are my chances?

[BCA2009]

I see some smart people on this thread and wonder if they have ideas for my situation. My wife and I own a house in Rockland County NY. I have 158K first mortgage with Citi and 123K with Chase. I recently had two appraisals of my property done about two months apart by the same guy,one intended for BK purposes and one to use to try and get my property taxes lowered. I currently am not in BK but plan to file CH7 in a few weeks. I've been trying for over a year to get a mortgage mod on either or both mortgages and got a one year forbearance from Chase which expires in April 2010. Any ideas on how to negotiate with either lender would be appreciated.

Please give us more details. How much did the house aprraise for? If your second is completely underwater, you'll probably have an easier time settling the second after BK than I expect in my situation. Or if you don't want to settle, you can just stop paying the second. They wont foreclose (chase) if there is nothing to get.

However if the house appreciates in the future, Chase would have the right to foreclose and try to get their money from you.

I've read conflicting stories about people gatting "Offical Modifications" after discharge. But if the loans are under water, they may be happy to take whatever you will send them (within reason). The Bank is going to do whatever it feels is in it's best interest and there are alot of variables.

They also might modify if you are willing to re-finance. But why would you sign a new note on a house that you just had discharged in BK? Only if you thought you were getting a good deal.

Like you noted there are some smart people on this forum. Share your information and they will give advise. Then decide how it best applies to you.

Good Luck!

[ben1381]

The house appraised in December at 220K and February at 215K. But it is possible some people will think the appraisal is skewed because it was done for BK and assessment value purposes.

[BCA2009]

The house appraised in December at 220K and February at 215K. But it is possible some people will think the appraisal is skewed because it was done for BK and assessment value purposes.

Sounds like you are in the same boat as me. The bank has a fair amount of equity in your second, it's gonna take some hardcore negotiating to get out of it. If you stop paying it there is a fair chance they will foreclose to get the 60K or so of value over your first. We are within a few thousand dollars of being in the exact same situation.

I'm going to stop paying my second and wait about three months and try to negotiate a settlment on my second, but I'm not getting my hopes up. I can't go over about 30K to settle and they might want more.

We'll have to wait and see.