Second Mortgage and Foreclosure

[RickInMich]

ssdsco, are you saying that the 2nd mortgage only offered this settlement because you have your 2nd with the same bank as your first? I guess our situation is different since our 2nd is with Ditech and our 1st is with Countrywide. Or is it possible Ditech would offer some sort of a settlement?

Has anyone had any experience where a mortgage company on a 2nd mortgage offered to settle the debt for less than what is owed and release the lein, too? That seems almost too good to be true. We'd be willing to do that even if it was 50 cents on the dollar. Of course, it would be great if it was 20 cents on the dollar like you, ssdsco!

HHM, if you're following this thread, I was wondering why you said that if we stop paying Ditech our credit will be trashed. I mean, beyond it being trashed so much by the bankruptcy anyway. I see now Ditech is listed on our credit reports as "included in bankruptcy." So it's my understanding they can no longer report missed payments. Am I wrong about that?

I guess would it be any worse for our credit to stop paying on the 2nd and see what happens than it would be to just stop paying on both and let it go into foreclosure?

p.s. HHM, I know I seem like Sybil on this whole issue. I go back and forth on this in my head daily!!! Keep it, let it go, keep it, stop paying on the 2nd. Stop paying on both. The indecision is driving me nuts.

[ssdsco]

ssdsco, are you saying that the 2nd mortgage only offered this settlement because you have your 2nd with the same bank as your first? I guess our situation is different since our 2nd is with Ditech and our 1st is with Countrywide. Or is it possible Ditech would offer some sort of a settlement?

Has anyone had any experience where a mortgage company on a 2nd mortgage offered to settle the debt for less than what is owed and release the lein, too? That seems almost too good to be true. We'd be willing to do that even if it was 50 cents on the dollar. Of course, it would be great if it was 20 cents on the dollar like you, ssdsco!

Even though the 1st and 2nd are the same mortgage company, based on my experience trying to do a short sale last summer they act like two different mortgage companies. I doubt they got together on this.

My guess is the 2nd mortgage department ran some numbers and figured out 20 cents on the dollar was more than they would net out of an auction. With all the foreclosures they probably wouldn't wind up with anything. This offer required a lump sum payment within 30 days.

If this is the case with your house maybe you could negotiate something with Ditech

[geek4Life]

We are in the same situation as those described here.

Our 1st is with EMC (JP Morgan now), and the second with Ditech.

EMC is willing to do a loan mod if we give them a down payment to stop the foreclosure and then make 3 consecutive payments at an agreed upon amount.

Ditech on the other hand essentially told us to bugger off. They would allow us to make a significantly less monthly payment for a period of 12 months or so, and then settle for 30% of the original 85k loan. Some might think this is a valid attempt by Ditech to settle. I happen to know they "could" settle for pennies on the dollar and rightfully should considering the alternative for them is getting wiped out at foreclosure (we've been discharged from ch. 7 already, so they cannot pursue us).

If anyone has successfully settled with Ditech for pennies on the dollar, I would absolutely love to hear about it!

[lost7243]

Hi,
In the summer of 2004 we were behind on our first and second mortgage and had been threatened by the 2nd that they were foreclosing the house. About a month later, out of the blue, a realtor showed up at our house wanting to see if anyone was living at the residence. Naturally, we said yes, why. He said the house had been foreclosed the day before by our second mortgage.
I called a local attorney and he suggested the only thing to prevent the foreclosure was to file an emergency BK. So we did.

We went through all the paperwork, did the meet thing and setup payments with the trustee. They sent payments to the second but all were returned. My attorney sucks and never seemed to do anything, so I spoke with a second lawyer, he placed a call and went to the courthouse to look up the deed and sure enough the home is titled to the second mortgage company. However, the first mortgage was never paid by them.

We have been paying the first for the past 4 years, in addition, the trustee is paying the arrarys we had on the first mortgage.

What do I do to get the title back in my name? Am I just making the payments for the second mortgagecompany to the primary?

House worth ~ $105,000 now
owe first ~$67K
owed second ~ $25K at the time