Not reaffirming 1st or 2nd --- Chance of foreclosure?

[startover24]

We are in the 60 day club and we are not reaffirming our 1st or 2nd mortgages. Both are through Citibank. Second is a HELOC.

House worth about $320,000
1st Mortgage - $270,000
2nd Mortgage - $65,000

I'd like to keep paying and stay for maybe 4 years. I don't think they'll try to foreclose, but I'm not sure.

If they don't, and my value and equity improve (say 4 years from now), will I be able to sell and retain any equity? Some houses in my sub actually went up in value this year so I'm hoping this is the bottom.

Also, is there much chance that Citi would be willing to mod after discharge or would I need to quit paying?

Thanks.

[shark66]

Are you intent on keeping current on both mortgages, or just the first?

[despritfreya]

If you pay both mortgages the lender is not going to care about a reaffirmation agreement and, yes, if you sell the property and there is $$ available after payment of the liens, commissions and closing costs. . . its yours.

Des.

[startover24]

Are you intent on keeping current on both mortgages, or just the first?

I figured that I'd have to pay both payments since there would be enough equity left, after paying off the first, to possibly make it worth the second to foreclose. As I stated, they're both from the same bank so I'm not sure how that would impact it.

[shark66]

As long as you're paying both, no one will bother you but...I wouldn't bank on getting a mod of any kind as long as you're current...something of a double-edged sword one might say...

Good luck.