Is bank more likely to modify after filing BK?

[Pandora]

4.5% is indeed a great fixed rate . Before you decide to stop paying the 2nd in the thinking that you will be able to settle - you have to take into account that WF holds both liens, therefore it may be harder to settle than what others have experienced. Each case is different and can have different outcomes; you dont want to be shocked by thinking you have X amount of time of non-payment to the 2nd in hopes of settling the debt, only to be served with foreclosure papers before you save up the cash to offer.

Any junior lien holder has the right to foreclose at any time regardless if the house is upsidedown or not - so keep that in mind. Does it happen often? Cant say that I've seen that happen, however the risk is greater if held by the same lender. The only safe way to avoid a foreclosure is to pay both lien holders - which makes it harder on the person going through the BK.

*ugh - forum is messing up again, sorry for all the edits*

[Pandora]

..Refinancing is pretty much out if your current value on the home is correct (-$180K to -$290K underwater) as it stands today...

actually those figures are incl. the 2nd - so in reality you're anywhere from +$10K to -$100K LTV from 1st mortg. only. Guess I should've clarified that - sorry!

[magua2]

I don't want to refinance. I want to leave my first alone and settle my HELOC for ten cents on the dollar. This was a previous Wachovia HELOC which is why it is now Wells Fargo. The same with my first. It was previously something else and is now Wells Fargo. I'm hoping the WF people have an account set aside for toxic Wachovia debt that they will want off of their books. The second may be completely underwater or it may have a small amount of secured, depending on the market value. A year from now it will probably be completely underwater, if housing rates keep going down.