mortage after 7 discharge not reaffirmed

[dm415]

I now I have read several posts about this,but I want to be sure,I have a 80/20 loan,did not reaffirm either,house is upside down in value,I have considered waiting till I can get either fha or usda loan,and by A cheaper home,assuming prices will still be low when I can qualify,maybe lower,maybe not who knows,So if I walk away from both mortages ther will be no recource from banks,no possible def. judgements,no nothing that I would owe them,they would just foreclose and exercise ther right against the house.Here is another idea I have.I owe about 30,000 on 2nd,if I walk away and one of them forecloses,the 2nd holder would end up with zero,based on home values around me,could I neg, something with 2nd mortage to release lein,like 20 - 30% of what I owe,keep in mind this debt was discharged and not reaffirmed.Or is the right thing to just keep paying as I have?

[StartingOver08]

Since you did not reaffirm, and the debt has been discharged, neither the first nor the second can come after you for the debt if you stop paying.

So there are a couple of people on the board attempting to do exactly what you propose, pay on the 1st and not on the second. The goal is to negotiate the lien release payoff with the 2nd just as you propose.

As to whether it is the right thing or not, only you know that for sure. You hold all the cards at this point because the 2nd can't come after you when you stop paying.

You might want to look up some posts by Relief - she is working on this process now

[relief13035]

StartingOver is right - this is the process that I am "tackling" right now.

I am paying my 1st as agreed (we didn't reaffirm, BUT Citi is reporting us as OPEN and paying as agreed, this is great for my credit reporting). I am in the middle of a loan modification on my 1st with the CitiMortgage Executive Response Team. I got a call yesterday stating that I should have my offer either today or Monday at the latest.

Now my HELOC is where I am taking a gamble:
My HELOC is also with Citi and I am 2 months past due in order to get them to work with me on a settlement payoff. I have a different Citi negotiator working on this and it has already been submitted.

[dm415]

Thanks for response relief..So you did not reaffirm either loans right.How is your first mortage doing a mod then?Has your 2nd mortage holder said they may settle it???Your situation sounds close to mine.How do you go about trying to deal a settlement with 2nd?

[dm415]

Are both loans with same bank??

[dm415]

Sorry I see you said citi twice..

[StartingOver08]

dm415, both loans are with the same servicer (Citi) - that does NOT mean they are with the same investor.

That actually is a good thing when it comes to doing what Relief is doing and you are planning to do - the servicer will handle the negotiations, but the actual lenders are two different parties.

[dm415]

So what are the thoughts of how to approach my 2nd mortage holder(heloc) for a settlement.Would they want to know way I am wanting to do this(hardship reasons).I have no reason other than my house is barely even worth the first mortage.Wouldnt this give me the upper hand in trying to settle the 2nd. By the way thank you all for taking time to respond to my questions,this forum is the best thing I have ever found..

[StartingOver08]

Make sure your house value is less than your first mortgage amount - so that the debt on the second is completely 'effectively unsecured'.
If even a $1 is secured, the lender will be less likely to neogtiate - not impossible, but you have a stronger case with the lower value.

[relief13035]

I feel like I am on Mr. Toad's Wildride (that's a ride at Disneyland). When I get a call from Citi, I have to ask if this is about the 1st or HELOC. I am doing 2 totally seperate deals.

dm415 - who is your HELOC lender?

I am hoping to be successful in these transactions and be able to help other forum members. Only time will tell - can't hurt to try. At least they are listening so far.

[dm415]

amtrust,they dont even send me statements anymore,but I still pay them online.Keep us posted on you outcome relief.

[Lajazz947]

amtrust,they dont even send me statements anymore,but I still pay them online.Keep us posted on you outcome relief.

Yes, I don't get statements from my HELOC either.

Anyone know why? My first sends statements.

I pay the HELOC but that's because my attorney told me that they can move for a stay if I don't.