Filed 7 - Did not Reaffirm 1st but Question on 2nd

[Fallonedward]

Hi

We filed a 7 last November, and we did not re-affirm our house. We stopped paying on our 2nd the day we filed.

Here we are almost a year later and I'm wondering when and if the 2nd will come after us.

Hubby still can not find a job. (he has a temp job that will end on Jan.15) so we do not have the funds to save yet to make an offer on the 2nd...

We are current on our first and home is still upside down so not sure if I need to worry just yet on the 2nd...

Would just like to hear from anyone else in this situation, thanks

[LadyInTheRed]

I'm not in your situation, but assuming your 2nd is not held by the same lender as your first, the second will not foreclose until there is enough equity to pay off the first, pay the expenses of foreclosure and leave some money to make it worth the trouble.

[btbeme]

Question - why stop paying your second yet still pay the first? Do you intend to keep the property?

If you are underwater and stop paying the second, it is likely that not a lot will happen - maybe a nastygram or two in the mail. Based on my experience and a lot of feedback lately, it is unlikely that the second will settle anytime soon. Most seconds seem to be holding out as long as they can (which is pretty much forever) before negotiating settlements that are at all attractive. They pretty much just sit there until...well, I don't really know what they are waiting for.

If you plan to dump the property, you can start Playing The Game by ending payments, then applying for a HAMP modification, then not paying the mod, then ...well, lets just say that a lot of folks can stay rent-free for many months, or even years, until the banks decide to move. But, I will say, that they seem to be moving more quickly now than they were a year ago to secure their property by foreclosing. Nonetheless, almost anyone can stretch the timeline for free living out by a year or so.

Now.... if you are anywhere close to being above water on the second (and are 101% certain you want to keep the property), you will want to start setting aside cash for an eventual settlement negotiation; say 25 cents on the dollar. Not many are settling for less right now; most want 50%. There are threads here and elsewhere that discuss the process for negotiating a second. Many of them were a big help to me.

Just don't think that they will forget about you. First chance they get to jump, they will.

[Fallonedward]

The 2nd is not held by the same lender, thanks so much for the help.

I'm not in your situation, but assuming your 2nd is not held by the same lender as your first, the second will not foreclose until there is enough equity to pay off the first, pay the expenses of foreclosure and leave some money to make it worth the trouble.

[Fallonedward]

The reason we stopped paying the 2nd is that at the time we filed and the reason we filed is hubby's job got outsourced to India along with 14 of his co workers. He has been unable to find a job but did land a temp job that ends on Jan. 15.

With just my salary we can pay the first and all of our other essentials, gas, water, electric, car payment, groceries, etc. but we do not have enough funds left over to pay the 2nd. Our first is still underwater.

We were not planning on dumping the property, however with hubby unable to land a full time, direct hire job with benefits these past 20 months, we are not sure what our future holds for us.

thanks for the help

Question - why stop paying your second yet still pay the first? Do you intend to keep the property?

If you are underwater and stop paying the second, it is likely that not a lot will happen - maybe a nastygram or two in the mail. Based on my experience and a lot of feedback lately, it is unlikely that the second will settle anytime soon. Most seconds seem to be holding out as long as they can (which is pretty much forever) before negotiating settlements that are at all attractive. They pretty much just sit there until...well, I don't really know what they are waiting for.

If you plan to dump the property, you can start Playing The Game by ending payments, then applying for a HAMP modification, then not paying the mod, then ...well, lets just say that a lot of folks can stay rent-free for many months, or even years, until the banks decide to move. But, I will say, that they seem to be moving more quickly now than they were a year ago to secure their property by foreclosing. Nonetheless, almost anyone can stretch the timeline for free living out by a year or so.

Now.... if you are anywhere close to being above water on the second (and are 101% certain you want to keep the property), you will want to start setting aside cash for an eventual settlement negotiation; say 25 cents on the dollar. Not many are settling for less right now; most want 50%. There are threads here and elsewhere that discuss the process for negotiating a second. Many of them were a big help to me.

Just don't think that they will forget about you. First chance they get to jump, they will.