Chapter 7 and 2nd mortgage

[Floridaheart]

Hello everyone, this is my first post. We went to see a bankruptcy attorney today and he has advised us on going the Chapter 7 route.

We invested in a property that was foreclosed last week and the judge awarded a deficiency judgment of $220K.

On our home, current value $400k we have two mortgages, the first with Bank United for $310K and the second with SunTrust for $340K. Although we are in foreclosure with BU (no payments for a year) they are willing to work with us on paying back the arrears along with the mortgage payment. My husband lost his job two years ago and this is why we fell behind. However, he now has a job. We do still qualify for the Chapter 7.

We would like to try and keep our home if possible and as we don't qualify for stripping the 2nd mortgage are trying to get SunTrust to accept a settlement on the loan. I called today and spoke to a guy who said it is a possibility. I explained that if the house goes to foreclosure the bank will come out with virtually nothing after realtor fees and charges from Bank United. I offered 5% at which he didn't seem too impressed. However, he said he would make some phone calls and come back to me on Monday.

Has anyone else negotiated SunTrust down and is there anything special that I should know?

Thanks.

[iv65536]

Hello everyone, this is my first post. We went to see a bankruptcy attorney today and he has advised us on going the Chapter 7 route.

We invested in a property that was foreclosed last week and the judge awarded a deficiency judgment of $220K.

On our home, current value $400k we have two mortgages, the first with Bank United for $310K and the second with SunTrust for $340K. Although we are in foreclosure with BU (no payments for a year) they are willing to work with us on paying back the arrears along with the mortgage payment. My husband lost his job two years ago and this is why we fell behind. However, he now has a job. We do still qualify for the Chapter 7.

We would like to try and keep our home if possible and as we don't qualify for stripping the 2nd mortgage are trying to get SunTrust to accept a settlement on the loan. I called today and spoke to a guy who said it is a possibility. I explained that if the house goes to foreclosure the bank will come out with virtually nothing after realtor fees and charges from Bank United. I offered 5% at which he didn't seem too impressed. However, he said he would make some phone calls and come back to me on Monday.

Has anyone else negotiated SunTrust down and is there anything special that I should know?

Thanks.

One tactic which I am working on with another lender on the 2nd on my home is to threaten to stop paying the 1st. The value of my home is very close to the amount of the 1st. My first offer was 1%; I have not increased it yet. Because they insisted any written reply would have to go through their compliance department, I requested a written response with the W-9 I requested they fill out.

[Floridaheart]

That's bold of you to send them a W-9 to complete. I like that. I have actually already stopped paying the first mortgage12 months ago and they have commenced foreclosure. The first has said they would stop the foreclosure if we pay 50% of arrears and make the balance of the arrears up over the next 6 months along with our regular payment. We have a conciliation meeting planned with them to negotiate a better repayment plan. I'll post on Monday when the 2nd comes back to me.