1st mortgage solved, here is the deal on the second

[sadandconfus]

bkinaz: you are underwater and have 70k in unsecured debt. in reason you are trying not to file bk? is it just because of credit or other reasons?

[BKINAZ]

Other reasons. Very good reasons. Like a retirement account that was not set up for a retirement account (just never thought we'd have to file bk) and oh yeah a collector car.

With that said between the Mortgage Modification, Deed in Lieu and what will amount to about $22k in credit card settlement (money from retirement) we can be done and not file. That's a small sacrifice considering it was nobody's fault but our (my) own that we are in this mess. I can pretend that my creditors are the jackals...but lets be real...we created the jackals.

In addition, long short story I have to wait till January 2010 to file and quite frankly it's worth the money not to get the phone calls, harrassments and possble garnishment or suits in that time frame.

PLUS...I can file for BK in the future if I need to and it will have cost me $22k to try and not too right now.

[NeedNewStart]

I'm just over 3 months behind on my second mortgage. How are you going about starting the "settle it" talks?

[BKINAZ]

After 90 they will start to talk a little...but seriously...don't expect much. "You don't have it...your parents might loan you a lump sum to settle, otherwise don't expect any payments from me...I am trying to get money for you but I need to keep paying my first, but that's all I can do right now is try."

[getmeoutofhere]

update

Update:
Spoke to GMAC again. They said they will absolutely not go below 10%. Told them fine... I would file BK and have it stripped. He said once I select an attorney, to let him know.

Not sure if I am going to be able to get them lower than 10%. I am going to sit on this for awhile and see what happens....

[RickInMich]

Take the 10%. That is a great offer, in my opinion. Are you planning on filing Chapter 13? Isn't that the only way to lien strip a 2nd?

[biotechsolution]

Update:
Spoke to GMAC again. They said they will absolutely not go below 10%. Told them fine... I would file BK and have it stripped. He said once I select an attorney, to let him know.

Not sure if I am going to be able to get them lower than 10%. I am going to sit on this for awhile and see what happens....

The only way you could strip the 2nd would be in a chapter 13. That could cost you a lot more over the 5 years.

[spidge]

10% sounds great but will they take it over time or do you have to pay the full amount ASAP?
I am 3 months behind on my 2nd so am following this thread closely. They have yet to offer any solutions.

[getmeoutofhere]

Update

I have not accepted the 10% offer yet. I will make a decision in the next week or so. My plan will be to go back and accept the 10% offer so long as can be paid over 12 months. 10% would be $15K, or $1250 per month with a full lien release. I will let you know if it gets accepted.

[sadandconfus]

what is your situation again? did you file?

[relief13035]

I'm working with Citi to settle on my HELOC. I owe $123k and offered them 10% within 6-8 months.

Thanks to all my BK forum friends and especially the person that PM'd me with the info to get me directly to the Executive Response Team at CitiMortgage. My 1st is also with CitiMortgage and I am WELL on my way to my loan modification. I didn't have to go through a million phone transfers. What a blessing

[BKINAZ]

Congrats. BTW...waiting (if you have decided to take it) I don't think is a good thing. IMO they aren't going any lower, but best of luck...hope they come through on the 12 months...I will be surprised. THough I say that based on the idiots at chase and their willingness not to work with my credit cards. lol

[sly777]

?? Paying less on a HELOC

Am I understanding this correctly? You folks are getting a deal paying 10% of principal on a loan that is secured by real estate? Is the home worth less than the first mortgage? I was wondering if I would be able to do this on mine but I owe 150K on my HELOC and 320K on my 1st. My house is probably worth around 460K which is 10K less than both loans combinded. Can I try to get them to reduce the principal on my HELOC?

[albacore44]

I'm working with Citi to settle on my HELOC. I owe $123k and offered them 10% within 6-8 months.

Thanks to all my BK forum friends and especially the person that PM'd me with the info to get me directly to the Executive Response Team at CitiMortgage. My 1st is also with CitiMortgage and I am WELL on my way to my loan modification. I didn't have to go through a million phone transfers. What a blessing

Keep us posted how this works out for you. I have Citi too, and eventually have to do something with it. You are our test case.

[relief13035]

I should know what my loan modification options are by next week on my 1st with CitiMortgage.

I am still in the negotiating stages with Citi on my HELOC. I offered them $12,000 to settle in full.

If I make this work - ME, ALBACORE & LIZ are going out for drinks.