Question Settling 2nd Mortgage

[tonto]

I am in the process of a chapter 7 bankruptcy. I wanted to inquire about the chances of settling a 2nd mortgage (HELOC) after my debts are discharged.

The home info is as follows:
1st Mortgage: $132k, acquired in 2003
2nd mortgage: $240k, acquired in 2005
Approximate home value: $190k to $250k

Home value X 70-85% = recoup from sale - $168k
- legal fees - guess about $8k
-back taxes
-Sr lien holders - $132k
-------------------------
$28k Recoup - Assuming $240k house value & 30% recoup

The mortgage company is GMAC for the 1st & 2nd mortgage. However GMAC sold the 2nd mortgage to the Bank of New York Mellon(BNYM) in Oct of 2009 but GMAC continues to service the 2nd mortgage.

My plan is to reaffirm the 1st mortgage and not reaffirm the 2nd.

1. What are the chances that GMAC-BNYM (2nd mortgage) might foreclose on me?
2. What is the likelyhood and chances of GAMC settling with me on the 2nd mortgage?
3. If Settlement was a valid option, what would be a likely settlement, ie % of balance?

[SMinGA]

Since there is equity in the 2nd - you may be going down a treacherous path. Letting the house go (or at least preparing for that scenario) would be wise...

[HHM]

Please do not duplicate your posts, you have already posted this and received answers.

http://www.bkforum.com/showthread.php?t=59678