Has anyone had a second mortgage modified ?

[RickyC]

Just looking for any feedback regarding second mortgage modifictions.

[msm859]

I settled my 2nd. Owed 191k settled for 28k

[jenbow]

How did you go about settling on the second?? I just figured out that I am claiming chapter 7 and will file in about 5 months. The bad thing with not claiming chapter 13 is I cannot strip the 2nd... I have been thinking maybe I can take my 401K and offer a settlement.. anyway, can you tell me the steps you took to settle on this?

[ben1381]

I have the same issue. My first was modified in April to 3.125% and a 40 year term. My second is only partly under water so I couldn't do a Chapter 13 and lien strip it so I did a Chapter 7. Property was appraised at 215K in February 210. First has balance of 160K and second (HELOC)has balance of 122K. First is with Citi and second with Chase.

[msm859]

I first settled my 1st. Had an I/O ARM modified to fixed 3.5% fully amortized added 6 months to term @ 26 years. The 2nd was with Citibank. Dealt with the short sale department. Sent in my hardship told them I believed I was underwater with the 1st and offered to settle for 9.5k otherwise I was looking to go BK and do a lien strip. They did a BPO appraisal that came higher than I thought and they told me they would settle for 58k. I came back with some comps to show their appraisal was high and offered 20k. They came back at 28k = @15% and stayed there. I got the money together and took the offer. The whole process was a lot simpler than the 1st.

[avmarathe3]

How does 2nd forecloses if first and second are underwater? Any thoughts!!

[Fallonedward]

I first settled my 1st. Had an I/O ARM modified to fixed 3.5% fully amortized added 6 months to term @ 26 years. The 2nd was with Citibank. Dealt with the short sale department. Sent in my hardship told them I believed I was underwater with the 1st and offered to settle for 9.5k otherwise I was looking to go BK and do a lien strip. They did a BPO appraisal that came higher than I thought and they told me they would settle for 58k. I came back with some comps to show their appraisal was high and offered 20k. They came back at 28k = @15% and stayed there. I got the money together and took the offer. The whole process was a lot simpler than the 1st.

Did you do all of this while in Chapter 7 bankruptcy?

[msm859]

Did you do all of this while in Chapter 7 bankruptcy?

No. I only talked about going BK when settling 2nd.

[CCsAreEvil]

How does 2nd forecloses if first and second are underwater? Any thoughts!!

If you stop paying on the 2nd, the 2nd can foreclose on you if they want to.. however, if you are underwater on the 1st, why would they?

It's hard to tell if there's a "magic number" out there, but maybe it's somewhere around.. if the 2nd knows they can foreclose/sell the home for more than say... $25-$50k over what's owed on the 1st, then they would probably pursue this route. Again, that "magic number" appears to be dependent on the bank and each house situation (what's owed vs 1st loan amount and 2nd loan amount).