Queastion to people who settled their second...

[marchelala]

Hi,

I have a question to people who settle their second after the ch7 doscharge.

Let's say you stop paying your 2nd... 30-60-90 days later bank will contact you, right? Should I offer them to settle when they first contact me, or I should just wait for let's say 180 days before any conversation should occur?

I really, really appreciate any advice.

Thanks

[CCCrazy]

I settled my second with Wells Fargo about three weeks ago for 10 percent of the balance. If you discharged your second in BK the bank CAN'T contact you. You will have to be proactive in the situation.

Is your house underwater with just the first mortgage? And I would wait 180 days - at that point your bank will charge off your second and it won't be on their books anymore, which means they view it as uncollectable. Then I would contact them.

[marchelala]

thanks CCCrazy... so they did not call you at all? and you contacted them after 180 days? was this your process?

[CCCrazy]

WF did not call me at all...as I said, they couldn't since it was discharged. And yes, I contacted them after 180 days and when I had 10 percent of the balance to settle with them. My whole process is in my thread...

http://www.bkforum.com/showthread.php?t=53176&highlight=cccrazy

[marchelala]

Thanks again CCCrazy... one last question... was 10% is your first offer, or you offered 5% at first ? My second is with WF also.

Thanks.

[CCCrazy]

10% is the understood going rate for settlements and the banks know that. I offered them $4,228 dollars to make sure they understood that I knew that also. They accepted my offer within two days of me making it. You can try 5% first - who knows it might work. Best of luck to you!!!

[marchelala]

thanks - my HELOC is almost 100K, so 5% would be fantastic, but we will see

[xena]

Please advise

[QUOTE=CCCrazy;402221]I settled my second with Wells Fargo about three weeks ago for 10 percent of the balance. If you discharged your second in BK the bank CAN'T contact you. You will have to be proactive in the situation.

QUOTE]

Please help!

My husband and I are planning to file in June 2010. Per our lawyer, we qualify for CH 7. I would like to know exactly how you went about settling your HELOC with Wellsfargo because I have both the 1st and HELOC with them.

Here is our situation.

1st Mortgage is 200K
HELOC is 53k
Value of hous is 220k

I am new to this and I'm really lost. Please help!

[CCCrazy]

Hi Xena, my situation was a little different then your's - I was underwater by about 20k with my first mortgage. You have some equity in your house after the first mortgage. But do not reaffirm either of your mortgages and it gives you more bargaining power.

You can read about my entire process in the link I posted on 4-11 in this thread.

[xena]

We actually bought the house for 263K. If we sell the house now per say, we still goiing to end up owing 33K on the HELOC if the house sell for 220K.

Orignal 1st was 211K
HELOC 52K (only paying minimum and it's actually going up instead of going down since interest is variable)

If I don't reaffirm, then my monthly mortgage payment will not be included in my monthly expense which then raise up my DMI. Is this correct? Then we would not qualify for CH 7.

Could the 2nd mortgage force foreclosure?

Do you guys think I even have a shot in bargaining since it looks like I have equity which in reality I don't if HELOC is included?

Should I call Wellsfargo and advise of our plan to see if they will work with us in lowering the 1st mortgage interest and montly payment before filing BK?