Stopped paying 2nd with Greentree. Now what?

[RW3]

Hi all,

I stopped paying my 2nd with Greentree it's been approximately 3 months since my last payment. Last communication I got was that they were looking into a modification and would be contacting the servicer of the 1st Bank of America.

I already had my 1st modified to reasonable terms with Bank of America (Fannie Mae is the investor) and the loan is current.

The balance of my 1st loan is $279,000
The balance of my 2nd loan is $46,000 (It's in a currently in a MBS pool owned by Wells Fargo, and the company (Ambac)who insures the bond is currently filing Chapter 11)
My homes current market value on a good day is around $215,000

So I am upside down by over $100,000. I don' think Greentree will move to foreclose but will rather charge off the loan. (which would remove at least the lien) I'd like to work out a settlement if possible.

I field Chapter 7 BK in 2009 and it was discharged, while filing the servicing of the 2nd loan was transferred from Irwin home equity to Greentree. If possible I may file a Chp. 13 to removed the lien on the 2nd.

I would appreciate feedback.

Thanks.

[iv65536]

You're in the driver's seat - Green Tree is also the servicer on the 2nd which I quit paying 9 months ago.

There is no equity for Green Tree, but charging off does not remove the lien.

[keepinitreal]

Did you re-affirm the 1st and/or 2nd when you filed Chapter 7 last year?

[RW3]

iv,

Did they charge off your loan? If so what happened at that point?

keepinitreal - I did reaffirm the debt in my Chapter 7 per my attorney advice, I did not want to but he insisted. I do believe I still could do a Chp. 13 as a last resort to strip the lien.

[Pandora]

I field Chapter 7 BK in 2009 and it was discharged, while filing the servicing of the 2nd loan was transferred from Irwin home equity to Greentree. If possible I may file a Chp. 13 to removed the lien on the 2nd.

I would appreciate feedback.

Thanks.

you were discharged from a Ch. 7 in 2009 - you cannot strip your 2nd in a 13 as you're not eligible for a discharge given its only been 1 year since your Ch. 7.

[RW3]

you were discharged from a Ch. 7 in 2009 - you cannot strip your 2nd in a 13 as you're not eligible for a discharge given its only been 1 year since your Ch. 7.

How long is the waiting period after a Chapter 7 to file a 13?

[Pandora]

How long is the waiting period after a Chapter 7 to file a 13?

more than 4 years from discharge of your previous BK filing.

since you reaffirmed your 1st and 2nd mortgages - you're now liable for them since you defaulted. You'll have 2 strikes on your credit report 1. BK and 2. charge-off / foreclosure. Is CT a recourse or non-recourse state?

Why did you reaffirm vs. just doing a ride-through?

[DebtEnder]

He got bad advice from his attorney.

[Pandora]

I agree DebtEnder - I feel badly for the OP - I'm not sure why any attorney would recommend reaffirming on a house that is 100K upside down. This is why it pays to know what will / can happen from all aspects.

[iv65536]

RW3:

They tried to get me to pay but ultimately they told me they would charge off the loan. They were sending me "informational statements"; I demanded they cease mailing them, stating that notwithstanding the disclaimers, I do consider them to be attempts to collect. I have not heard from them since.

There are some homes in my area that appear to be more than comparable to mine that are listed in the MLS for significantly less than the balance on the first mortgage. I'm trying to get the first to modify the interest rate (but leave the principal alone, since the principal amount protects me from Green Tree trying to foreclose).

For the record, i did NOT reaffirm.

You may also want to check the case records again - did the BK judge sign off on the reaffirmation?

[RW3]

Here's the thing I reaffirmed the debt with Irwin Home Equity they were the lien holder at the time, I am not sure at which point but Greentree purchased the servicing rights during my bankruptcy filing. Am I able to amend the Bankruptcy at this point, and "fix' the reaffirmation. I'm just going to continue to keep my 1st mortgage current and continue to not pay the second. Hopefully it will get to point where I can work out a settlement. I spoke with a rep from my 1st lien holder Bank of America and they had said it would highly unlikely that Greentree would attempt to foreclose with me already being upside down on the first and then having to deal with the investor on the 1st Fannie Mae. I do feel like I am in the drivers seat here...

BTW - CT. is a Judaical foreclosure state and also requires mediation as part of the foreclosure process.

[willsurvive]

This is nice to know as I have a similar problem with BofA as service (Fannie Mae owned), and a 2nd with Chase.

Crossing fingers that they don't try to foreclose or anything.

Good luck!!!!

[RW3]

You're in the driver's seat - Green Tree is also the servicer on the 2nd which I quit paying 9 months ago.

There is no equity for Green Tree, but charging off does not remove the lien.

Well I send a settlement offer to Green Tree today for 5% of the principal balance. I'll let you know what happens.

[RW3]

RW3:

They tried to get me to pay but ultimately they told me they would charge off the loan. They were sending me "informational statements"; I demanded they cease mailing them, stating that notwithstanding the disclaimers, I do consider them to be attempts to collect. I have not heard from them since.

There are some homes in my area that appear to be more than comparable to mine that are listed in the MLS for significantly less than the balance on the first mortgage. I'm trying to get the first to modify the interest rate (but leave the principal alone, since the principal amount protects me from Green Tree trying to foreclose).

For the record, i did NOT reaffirm.

You may also want to check the case records again - did the BK judge sign off on the reaffirmation?

I found my reaffirmation agreement with Irwin, only my wife and I signed. The creditor did not and neither did the judge.

[Mensa1]

I found my reaffirmation agreement with Irwin, only my wife and I signed. The creditor did not and neither did the judge.

I couldn't imagine a Judge signing off on such a reaffirmation agreement; (where the debtor is 100K upside down, nearly half of that in a Jr mtg.... geesh). You are fortunate that the Judge was doing his/her job, because your Atty darned sure didn't understand the impact of their (bad advice) upon the rest of your life....