2 mortgages...1st and 2nd

[jtsmith]

I file chapter 7 almost 2 years ago, my home was included in this. I have continued to make payments on time, and every month. I am a little curious on this though, I have 2 mortgages', my home is no way worth what the 1st mortgage. (1st mortgage $155K)(2nd is $25K) my home if I tried to sell it today, would sell for about $85k. Is there any thing I can do to get rid of the second mortgage?

[tcreegan]

You bet jtsmith....contact them and tell them you want to settle. Its classic business negotiation, they start high, you start low. Your goal should be something less than 10% (2,500) The biggest trick will be getting someone at the lenders company who actually has the authority to make a settlement. The frontline troops who answer the phones can't, and usually won't be helpful finding out who can. If you can find out what state they are incorporated in, you can get info about the top that way. Work down to the VP or dept manager level.

When you get near the end, bring an attorney on board to review the papers b4 you sign anything, make sure the lien release is ironclad.

Good luck w/ it!

Tom in Colo

[jtsmith]

What if I just stopped paying them, and waited for the right person to call me? Could they foreclose even without the main mortgage company on board?

[shark66]

They could, but the first mortgage gets paid out first, so the second would have absolutely nothing to gain by attempting a FC.

If your numbers are anywhere close to reality, they won't be doing anything for quite some time...

Good luck.

[btbeme]

If you did not reaffirm the loans in your BK, that puts you in a good place to negotiate (assuming your 1st and 2nd are not with the same bank). Plenty of people have successfully negotiated a lien release for 10 cents on the dollar. You can get their attention by not paying for a few months, but you can always try calling first. Ask to speak with their loss mitigation department. Don't be surprised if you are not taken seriously for a while, since you have continued to pay thus far.

I have a neighbor who settled a $62,000 second for their tax refund check amount of $1121. Back in the day when we were considering keeping our house (upside down $250k on the 1st alone) we called the 2nd and offered $2000 for a lien release on a $83,000 loan. They laughed...until we told them we were leaving, and now they are calling to "negotiate" our offer. I wish them good luck.

Stick to your guns. You have nothing to lose. And have a knowledgable attorney examine their lien release offer to make sure there aren't any trap doors.

[jtsmith]

Thank you all for your replies, I am in a middle of a divorce so I am looking to do this after that is finalize.