Three Months Behind on 2nd Mortgage

[jenbow]

Hello

Have not posted in awhile.. finally have a file date of 10/19/2010. Been a long 6 months. I have a question on my mortgage payment. I am current on my 1st but I am 3 months behind on my 2nd. Will this be an issue for my filing or 341 hearing?

I am hoping my husband gets approved for unemployment (he was denied) and we are waiting for an appeal. If we get approved, then I should be able to make one or two payments.

Any advice?

[tcreegan]

Hi jenbow,

Any advice? Don't

Being current/behind on the 2nd is not going to make any difference at the 341

What makes a difference is how much equity is in the 1st. If there is little to no equity then after BK discharge the 2nd becomes essentially worthless. If this is the case, paying on the 2nd would be throwing money away.

And stay current on the 1st only if you are keeping the house, if not, stop paying it as well.

Have you had some advice on the mortgages, equity, exemptions, reaffirming, not reaffirming, that sort of thing?

Good luck on your filing,

Tom in Colo

[jenbow]

Thanks Tom. You always provide very helpful insight on these boards.

I am upside down on my house.. I owe $185,000 on my 1st with a 6% 25 year loan and my 2nd is $99,000 with 7.75% 30 year. My house is appraising for $120,000. My hopes after I file is to try and get BOA to settle on my 2nd for about $10,000 (401K withdrawl). If I cannot settle, I will walk away later. I have put about $80,000 in rennovations so my house would be worth more than $120,000 if someone did an actual walk through.. the $120,000 is just from comps.

Not sure if my plan will work. I love my house and I know this is an emotional decision as most people would tell me to walk from a business perspective.

My file date is October 19th.. getting very nervous.

Thanks

Jen in AZ!

[tcreegan]

Hi again jenbow,

Stop paying the 2nd and settling is a good plan. In fact my initial offer would $5,000 instead of $10,000

And do all you can to not reaffirm either mortgage in the BK, that leaves you free to walk away later if you need to.

Hang in there, you will be OK!

Tom in Colo