Does Receiving a NOD mean they WILL foreclose?

[yoyoma51]

We have received a NOD for our second mortgage.

We are current on our first.

Both are with GMAC.

Does this mean they WILL start foreclosure or just the CAN?

Please advise. We are trying to settle with them on the second.

[spidge]

If the house is worth less than the ballance on the first it is likely they are bluffing. They would have to pay the first off before they could aquire the property. Make sure they are aware of this fact if this is the case and they may change thier tune with you.

Keep us posted.

[yoyoma51]

We could use some of my wife's student loan money to get current, but we hate to waste the money if we don't have too.

House is worth maybe $105k. We owe $95k on the first and $18k on the second.

We'd like to keep the home.

What I'm afraid of is if they start foreclosure, they will want the note paid in full in order to stop it. That we couldn't do.

Being that GMAC owns both mortgages, we're a little worried.

We have been offering to settle for $1200, but so far no reply.