2nd Equity loans being discharged by banks

[HOMEBODY]

I've just learned that there is new program were banks are discharging the 2nd loans...no need to negotiate...they send you a fedex package and you sign it and send it back. My friend got hers completely wiped off from Chase. I called then and told them I wanted to be in this program and they are having a rep look into my loan. I owed them 83,000 which was discharged and I was waiting to negotiate.

[Drazil65]

Our second mortgage on the out of state rental (we are letting it go when we file) is with SLS (BOA sold it to them this past summer right before we stopped paying) and they just sent a notice yesterday that they were starting the foreclosure process. Actually, with BOA still holding the first that might be a faster road to getting it out of hubbys name, right? BOA has not started the foreclosure process as of yet for the first (we are 90 days no pay at this point) so we were kind of surprised to see the notice from SLS. They have been sending us settlement letters since we have been at 60 days late so we thought it was another settlement offer. Anyway, if they move this fast then its all theirs!

[DoReMi]

I've just learned that there is new program were banks are discharging the 2nd loans...no need to negotiate...they send you a fedex package and you sign it and send it back. My friend got hers completely wiped off from Chase. I called then and told them I wanted to be in this program and they are having a rep look into my loan. I owed them 83,000 which was discharged and I was waiting to negotiate.

My loan is with a credit union.... I'm guessing they aren't doing programs like this as of yet.... I am not late on my first, nor do I have much equity ( if the 2nd isn't counted) which is why the CU has not tried to foreclose. I haven't paid the 2nd in almost 2 years. I have offered them a settlement offer on more than one occasion. They have flat out refused so far. I plan to send an offer to the CU Board and other higher ups before I give up & continue to wait.

[maddog2112]

Homebody, was your mortgage upside down?

[keepsmiling]

Yes, more info, please

[DoReMi]

name of program? conditions of program?? who( what department) at Chase did you contact?

[Ann]

Wow...if this is true I couldn't be any happier. Although I'm betting PNC will not be one of the banks offering this. I would love nothing more than to get those idiots off my back once and for all. My big question is what is the criteria for this?

[HHM]

There are only 2 programs I am aware of that are specifically targeted at 2nd mortgages, both have had a limited impact (this comes for the HUD Website)

Second Lien Modification Program (2MP): If your first mortgage was permanently modified under HAMP SM and you have a second mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage under 2MP. Likewise, If you have a home equity loan, HELOC, or some other second lien that is making it difficult for you to keep up with your mortgage payments, learn more about this MHA program. Click Here for more information.

http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/lien_modification.aspx

or

Treasury/FHA Second Lien Program (FHA2LP): If you have a second mortgage and the mortgage servicer of your first mortgage agrees to participate in FHA Short Refinance, you may qualify to have your second mortgage on the same home reduced or eliminated through FHA2LP. If the servicer of your second mortgage agrees to participate, the total amount of your mortgage debt after the refinance cannot exceed 115% of your home’s current value. Click Here for more information.

http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/fha2lp.aspx

Although under those programs it may be possible to fully discharge a 2nd mortgage, I am not aware of a new program that makes it easier.

[btbeme]

Frankly, even though my conservative philosophy is screaming at me from the sidelines, I believe debt forgiveness by the banks in certain situations makes sense. Strict qualifying conditions to gate the rising tide. The ability to forego giving the customer a 1099 for the balance. Etc.

Lots of things would have to be in place, but if I were dictator, I'd lean pretty heavily on the banks to trim their losses early, because I don't think that we have seen the full extent of the iceberg that is chilling this economy. Seems like we are still steaming full speed ahead, knowing that disaster could strike at any moment. Make hay while the sun shines, I say.

[spidge]

Don't most of these 2nd mortgage holders have some type of insurance on these loans anyway. So I would think it would make since to pull the bandage lickety split and move on. Maybe the lenders are still listing these 2nds as assets or something and are nervous about their balance sheets becoming out of balance(like the rest of us).

Quit fighting it and file a 13.

[btbeme]

Maybe the lenders are still listing these 2nds as assets or something and are nervous about their balance sheets becoming out of balance(like the rest of us).

Are you suggesting that the banks might actually be cooking the books, trying to hide the extent of the damage below the waterline and out of sight?

Say it isn't so!

You ain't seen nothing yet. Just wait until this depression outlasts the cute accounting tricks and the extent of the truth is revealed. At that point, I hope you have adequate ammo, seeds, and gold, since those will be the only commodities with any value. And I'm not sure about gold, either, since it isn't edible.

[HHM]

Here is a good article on why banks do not write down principal

5 Reason Why Banks Foreclose Instead of Settling.

http://realestate.aol.com/blog/2011/10/18/mortgage-prof-why-banks-foreclose-instead-of-settling-for-les/?icid=maing-grid10|htmlws-main-bb|dl6|sec1_lnk2|105578