2nd Mortgage becomes unsecured because home value only equal to 1st Mortgage?

[jenjen69]

he wasnt wearing a clown suit but he sure acted like one!!!..i think he was just trying to get money out of me... thank you so much for answering my questions...debee.. you are the best!!

[SetMeFree]

I came to the 145K from seeing what comparable homes are selling for currently in the area.

Considering I have not filed the BK yet. I have been reading the threads and trying to determine if I should negotiate with the bank before the foreclosure, but before or after the BK. It seems you might have more negotiating power after the BK considering you are then debt free. I think the house will probably be foreclosed on in March. I was thinking about filing in January 2011. Any insight for be greatly appreciated.

[SetMeFree]

House is considered in pre-foreclosure status now.

[debee]

It seems you might have more negotiating power after the BK considering you are then debt free. I think the house will probably be foreclosed on in March. I was thinking about filing in January 2011. Any insight for be greatly appreciated.

If your 1st and 2nd mortgage are two different lenders, can you stop paying the second now, stop paying all your credit cards and pile all your money into getting caught up on the first?

In terms of negotiating with the second, I think Tom (tcreegan) & Mensa gave the best advice. File bk, pay nothing on the 2nd and let some time pass so they are really starved. Then offer them a crumb.

edit: in a previous post I said you could indicate "surrender" on the Statement of Intentions, but I wouldn't do that unless you actually intend to surrender the property.

[shark66]

Do yourself a favor and wait with the filing.

Have all of your paperwork ready and in order, though.

If they schedule the Sheriff's sale for - let's say - March 10th, file on March 1st.

Buy the maximum amount of time that you possibly can, save as much money as possible.

Good luck.

[SetMeFree]

Yes they are two different lenders. BoA on the first and One West on the second. I am 10k in the hole now on the 1st mortgage. A mortgage help hotline number came with the served documents giving me 30 days. Might give them a call before the 12/17/2010 deadline.

[shark66]

Is there any way you could come up with what you owe on first, presuming you want to stay in the house?

[SetMeFree]

Is there any way you could come up with what you owe on first, presuming you want to stay in the house?

No... I saw on another thread a guy did not pay for 20 months then received an offer from the bank after BK for HAMP and was approved?

[debee]

I don't know a thing about HAMP.

I do know it's possible to keep your house through a chapter 7 filing when you are in default. It's going to be up to your lender. I read another thread recently where the debtor was behind, worked out a "catch-up" plan, and got a verbal promise from the lender that they would not foreclose during/after bankruptcy so long as the debtor stayed current with the new payment. If you really want to stay in the house, you should probably call your lender and be persistent in your efforts to get to the right person in the right department to try to work something out.

[unsure2011]

I have filed Chapter 7. My house if worth 278K. My first is 400K. My second is 40K. I am current on the first, but stopped paying the second last month. I have a great hamp and intend to keep the house, but will not sign a reaffirmation agreement. What do I indicate on the statement of intention? I want to keep the car, but my lender won't negotiate (if at all) until after the bk. - Not signing a reaffirmation there either. What do I put on the statement of intention? Please help in AZ.

[tcreegan]

Hi unsure,

Seems to me you would check 'retained' and 'other'

Thank goodness you arent reaffirming a 400K mortgage on a 278K house, this is a rotten financial deal, even with a great HAMP! Not reaffirming leaves you free to move on to a better deal down the road....good call.

Tom in Colo

[unsure2011]

Thanks Tom. I'm wondering if after checking "other" I need to fill in more info - like stay and pay or ride through, which I understand is now coming under scrutiny?

[tcreegan]

I wouldn't put 'stay and pay' or 'ride through' or 'pay and retain' ...these went out the door when the new BK law came in. Not sure what to put though...maybe something vague and legal sounding...

My other thought is that it is probably not too important, the Statement of Intentions is not binding, you can change your mind. Was reading a web article from a lawyer in S.Car. He said to always mark reaffirm, then do whatever is best. Apparently marking reaffirm gave him some leverage in preventing repossessions or foreclosures.

Good luck w/ this, let us know how it turns out!

Tom in Colo

[unsure2011]

Thanks again, Tom. I've read to put reaffirm as well. I'm going with that and the other box - with no explanation. I assume they'll ask in court. Do you know about the exemp check box? A house and car are exemp. I put them down on the exemption form with 0 equity regardless - just in case. I guess a reaffirm box with an other without explanation and an exemption check may be the way I go. Any thoughts? Wish they'd make these directions more complete, but I suppose they want us all to hire lawyers.

[tcreegan]

they'll ask in court ...no court, it will be the trustee asking at the 341 meeting.

the exemption form with 0 equity regardless - just in case. ...keep things consistent, check exempt on the Statement of Intentions

suppose they want us all to hire lawyers. ...well, yeah..a good BK attorney makes the process run like a well-oiled machine.

But for us pro-se filers, it's check the local BK rules, read the NOLO book, post questions on the BK forum....

Tom in Colo